Indians among Top Property Buyers in Dubai
Indians constitute a dominating group while buying real estate in Dubai, having invested nearly 10.5 billion UAE dirhams (Rs. 17,377 crore at 1 UAE dirham = 16.55 rupees) in the first half of this year, according to a report.
Between January and June 2014, Indians, British, Pakistanis and GCC (Gulf Cooperation Council) investors accounted for around four-fifths of all real estate transactions in Dubai.
Citing data from the Dubai Land Department, property consultant Knight Frank said a number of key nationalities including India dominated real estate investment activity in the emirate in the first half of 2014.
During January-June 2014, Indians invested close to AED 10.5 billion (Rs. 17,377 crore) in the emirate, while British and Pakistani nationals spent AED 5.8 billion (Rs. 9,599 crore) and AED 4.5 billion (Rs. 7447.5 crore), respectively.
Overall, the total amount invested in Dubai’s property market in the first half of 2014 was AED 50 billion, or Rs. 82,750 crore, equivalent to 44 per cent of the sum spent in 2013 as a whole, suggesting that, by last year’s standards, realty investment activity has softened in the first half of 2014.
However, the mainstream residential market is outperforming the prime segment in Dubai, mainly because these segments are very popular among western expatriates and continue to see healthy demand, Knight Frank said in its Autumn 2014 Dubai Residential Insight Report.
Secondly, the new mortgage caps had a lesser impact on the mainstream segment and demand situation continued to be robust because of Dubai’s strong economic conditions and buoyant labour market.
“We expect demand to outstrip supply in the short-term,” the report noted.
“Mainstream residential segment is anticipated to outperform prime over the next 12 months.”