Dubai developers promote Dubai investment opportunity to Indians
Flexible payment plans to cash discounts offered at property show
By Emirates 24/7 News
Published Saturday, November 07, 2015
Hoping to attract Indian investors to Dubai’s real estate market, developers from the emirate played high on the factors such as safety and security, higher rental yields and on-time project completion at the Dubai Property Show, which opened in Mumbai, India’s financial capital, on Friday.
Thirty five of the top developers showcased projects worth billions of dirhams at the three-day event, organized by Sumansa Exhibitions, expecting more investment from the Indian community, which ‘Emirates 24|7’ revealed last week had alone invested a whopping Dh5.2 billion in the emirate’s real estate market in the third quarter 2015. Their total investment has reached Dh13 billion in the first nine months 2015.
Even the UK-based consultancy Knight Frank said in March 2015 that $1 million could buy 145 square metres of prime property in Dubai compared to 96 square metres in Mumbai.
“There is enough motivation to invest in Dubai for investors provided they have got the investable fund and are looking to diversify their investments,” Sanjay Manchanda, Chief Executive Officer, Nakheel, told ‘Emirates 24|7’.
“Dubai is an excellent place and doesn’t need any introduction especially in Mumbai. The changes in the regulations have only made sure investor’s interests are protected. Though there would be some swings and events in the short horizon (one to three years), but fundamental overall long-term situation seems to be good, sustainable growth,” he emphasised.
Indian investors account for 11 per cent of Nakheel’s customers and so far purchased 4,400 villas, apartments and land plots with a combined value of $2 billion.
The developer is showcasing projects worth $4.6 billion, which includes Deira Islands and Palm Tower Residences on Palm Jumeirah, at the event.
Don’t miss out
Yousuf Kazim, CEO, Jumeirah Golf Estates, admitted Indian investors did matter for the Dubai property market.
“We want to be close to the investors and so we are participating in the event. UAE offers good infrastructure and value for investment and we don’t want Indians to miss out on the opportunity if they want to diversify. We are here with the Dubai Land Department, which is an assurance that this event is legitimate.”
The company is showcasing Alandalus, ‘affordable luxury’ apartment project, with prices starting Dh750 per square feet.
“Investors wanted us to give them apartments overlooking our golf courses. We did listen to them and offered them Alandalus.”
Currently, 700 families are occupying villas in the master development, which is home to two championship golf courses. Majority of the investors and residents are from Britain and India.
AlHarith Bin Salem Al Moosa, Vice Chairman, Falconcity of Wonders, was expecting to tie-up with investors and local brokerage firms.
“Our expectations are very high and we are expecting to meet people who are directly or indirectly interested in our project. Dubai offers political stability and an easy access to global and regional markets, besides boasting one of the lowest crime rates in the world, making the emirate a safe and secure zone. And all this is offered at affordable prices, all governed, secured, and registered with DLD to secure your investments”.
Al Moosa, however, ruled out special offers or discounts for investors at the event, adding, “In the long run our prices and payment plans offer a win-win situation.”
“Dubai, with its all-encompassing, flexible nature, offers class and comfort at an affordable price, not to forget excellent quality and a ready infrastructure,” Sultan Butti bin Mejren, Director-General, Dubai Land Department (DLD), said in a statement.
“This will be particularly attractive to the middle-income group, which will no longer have to choose between affordability and luxury. Indians have long understood the value of Dubai real-estate – as evident by their growing investment in the emirate – and they realise the long- and short-term financial dividends that they can attain.
“This is why Indian nationals continue to rule the foreign real-estate investment chart; in the first half of 2015 alone, they sliced a significant 15 per cent share – the highest in Dubai’s real-estate market by a foreign nationality,” he added.
Expo 2020 boost
Sultan Al Suwaidi, Partner, Sumansa Exhibitions, organizers of Dubai Property Show, stressed that the economic activity in Dubai has shown healthy figures as evident by the city’s diversification across various sectors including finance, logistics, tourism and retail.
“With Expo 2020 round the corner, the economy is certain to improve further which will have direct effect on rental and resale value of Dubai property. In the last one year, Dubai has reached more than seven per cent in rental yields in the mainstream property segment, not to forget that returns here are always tax-free. Office rents in particular, have seen profitable returns; rents were 23 per cent higher in the Q4 of 2014 than last year.”
Easy payment options
Deyaar Developments showcased its “affordable” Midtown development at International Media Production Zone and the upscale The Atria at Business Bay.
“We are expecting Indians to invest in Dubai due to the high rental yields and the low mortgage rates offered by Dubai banks,” company Vice-President Sales Nasser Amer told this website.
He revealed the company is offering a flexible payment plan, with investors able to book a unit in Midtown by paying as low as Dh10,000, followed by five per cent payment every six months till reaching 30 per cent and the rest, 70 per cent, paid on handover in September/October 2018. It has tied up with Dubai Islamic Bank to provide finance to investors.
Tebyan Real Estate Development Managing Director Naji Alia said they will be offering flexible payment plans and discounts of up to 10 per cent for buyers in its Sparkle Tower in Dubai Marina.
“We will be offering discounts to buyers during the expo, which could go as high as 10 per cent. Property prices in Dubai have stabilized and it is a good time for Indians to buy with capital appreciation expected over the years.”
Average prices for the Swarovski-branded project are Dh1,275 per square feet, with handover expected in December 2016.
The exhibition was inaugurated by Bollywood celebrity Malaika Arora Khan and will run till 8 November, 2015, at Bombay Exhibition Centre. Visitor timing are from 11am to 8pm.