(DENNIS B MALLARI)
Foreign investors in Dubai’s property market see almost five times better returns through rents than in other countries, said the managing director of a joint venture between Indian and Dubai-based property developers.
“The freehold property in Dubai continues to be in high demand especially by international investors thanks to impressive rental returns in the range of 10 to 14 per cent a year, which is very attractive, compared to two to three per cent in many global property markets,” said Dheeraj Wadhawan, Managing Director of Dheeraj & East Coast (DEC). He was speaking during the launch of two new projects at Jumeirah Village in Dubai.
The projects, Garden Heights and HQ, will be built at a cost of more than Dh700 million, taking the company’s overall investments in Jumeirah Village to more than Dh1 billion.
DEC is a joint venture between the Mumbai-based leading property developers, Dheeraj Group and the UAE-based East Coast Group.
DEC currently has 18 upcoming projects in Dubai, with an investment of Dh4.5bn.
Garden Heights is a Dh300m retail and residential freehold project, while HQ is being built at a cost of Dh400m and is a purely commercial project.
Interest by foreign investors in projects in Dubai has been strong, said Wadhawan, adding that it had led the company to expand its business in the UAE after the launch of its first project in Dubai – the Dh300m Lawns.
“The announcement of the two new projects comes in the backdrop of a strong investor enthusiasm towards The Lawns.
“Already 100 per cent of the project is sold out and the demand has been immense,” said Wadhawan.
The 28-storey mixed-use development Garden Heights is a freehold residential project with ground floor dedicated to retail space.
Foreign investors get 14% returns