Why UAE expats are taking advantage of weakening rupee

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More than 40 per cent of the non-resident Indians (NRIs) living in the UAE prefer to buy property in India as an investment, whether for the first time or as an additional asset.

As per the latest survey conducted by Sumansa Exhibitions, the organiser’s of the biannual Indian Property Show, 43 per cent of the respondents opted to invest in Indian real estate so that they could build profit on it, as compared to 57 per cent who were buying property for personal use.

Out of these 22 per cent were buying it for the first time, while for 21 per cent was an additional investment. The upcoming, IPS, will be held at Dubai World Trade Centre, Zabeel Hall 5 from June 2 to 4, 2016.

Mangalore emerged as the favourite property destination for NRIs in the UAE, finding a place among the top 10 most popular cities. Mumbai and Bangalore continue to retain the top destination slots on the popularity chart.

“An increasing number of Indians are looking to park their wealth in Indian real estate because they foresee lucrative returns on investment,” said Srividya Rajan, General Manager- Corporate Sales & Brand Engagement, Sumansa Exhibitions.

“At a time when the rupee has depreciated against dollar, many investors feel the time is ripe to lock their savings in Indian property, before prices escalate. Moreover, with so many funding options available, buying an additional property for investment has become an easy choice, especially now that certain two- and three-tier Indian cities offer more affordable, yet luxurious, property, which promises to appreciate.”

The report, based on survey of 14,600 NRIs, found that 75 per cent buyers looking to purchase property of up to nearly Dh555,555 (Rs10 million), with apartments being the popular choice. Besides, buyers seeking home finance dipped by 4 per cent to 61 per cent from 65 per cent.