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Indians among top foreign investors in Dubai real estate market

DUBAI: Indians are top foreign investors in Dubai’s real estate market, with transactions of over Rs 132.6 billion made by them during the first half of 2013, according to an official report.

Dubai’s Land Department announced the statistics based on its semi-annual report that revealed a significant increase in funds invested in the market, reaching Rs 877.5 billion.

In the first six months of 2013, Indians bought properties worth over Rs 132 billion, compared to Rs 149 billion they invested in the entire 2012, the report said.

Total investment of UAE nationals in the realty sector was Rs 199 billion, which equalled the entire amount they spent last year.

“Dubai’s real estate market is a lucrative one for its stability, diversity and promise of high return on investment. These factors continue to inspire confidence in local, regional and international investors alike, whose transactions in turn contribute to sustained momentum of the market’s growth – signifying complete recovery from the global financial crisis,” Sultan Butti Bin Mejren, Director General of the land department, said.

A break-down in investments shows that Arab investors contributed to approximately Rs 82.7 billion- a 111 per cent increase in spending, Gulf nationals to over Rs 264.8 billion – a 57 per cent increase in spending, and other foreign investors registering a 73 per cent increase.

Pakistani investors investors spent over Rs 49.7 billion while British investors spent Rs 66.3 billion in spending, the statistics showed.

“An increase in the volume of investors from diverse backgrounds, reflects the success of various policies and initiatives introduced by the government of Dubai throughout the year, which have had an invaluable impact on attracting investment from all over the globe who look for a safe and rewarding place to spend,” Bin Mejren said.

Citizens of the UAE ranked first among Gulf investors with a total of 2,765 investors. Citizens of Saudi Arabia ranked second with 605 investors. Kuwait came in third with 141, followed by Qatar, Oman and Bahrain.

Bin Mejren said that strategies launched by the land department aimed primarily at recovery are aimed at attracting more investment to the market, by offering support to the development of mega projects and advertising lucrative investment opportunities.

http://economictimes.indiatimes.com/markets/real-estate/news/indians-among-top-foreign-investors-in-dubai-real-estate-market/articleshow/21504304.cms

Realtors eye NRIs for Indian housing projects

LONDON: Presenting India as one of the few high-return real estate markets in the world, over three dozen property developers from the country have come here to attract UK-based NRIs to invest in housing projects back home.

These developers, which include real estate units of large conglomerates like Mahindras, L&T, Godrej and Adani group, would participate in a two-day home fair organised by housing finance major HDFC.

The other realty players participating in this fair, which would start here tomorrow, include Sobha Developers, Purvankara Projects, Ansal Properties, Unitech Ltd, 3C Company, Emmar MGF, Lodha Group and Hiranandani Constructions.

“There is nothing like owning a home – in your homeland,” HDFC Managing Director Renu Sud Karnard said.

“Demand for residential housing has witnessed rapid growth through corporate expansion out of the major cities. Amenities such as shopping and recreational centres, and even the infrastructure in these towns can surpass even the major cities. It’s an opportune time for NRIs to invest in property in India,” she added.

Nearly 40 developers participating in HDFC Indian Homes Fair here would showcase thousands of properties.

NRIs have been known to have a natural affinity towards their homeland and the depreciation of Indian rupee against the dollar makes has made it a win-win deal, experts said, while adding that the benefits from rupee fall is however only for a short period of time.

The developers are also trying to project Indian real estate market as an attractive destination in the backdrop of sinking property prices across the world.

Realty developers from India plan to hold similar fairs in other major global centres in the US and Europe as well.

But some NRIs stay away from investing in Indian real estate properties owing to lack of clarity on regulations and legal issues, as also due to insufficient information on projects and prices.

Karnad said that HDFC would look to work towards removing the misconception that “it is very complicated for NRIs to take out India property applications from the UK.

“HDFC has a base in London, and we can facilitate the process right here. It’s safe and secure,” she added.

http://economictimes.indiatimes.com/markets/real-estate/realty-trends/realtors-eye-nris-for-indian-housing-projects/articleshow/21038977.cms

Rupee depreciation may boost NRI investments in realty sector

MUMBAI: The depreciation in rupee provides a psychological boost to both non-resident Indians as well as developers, real estate consultancy firm Cushman & Wakefield said.

On Wednesday, rupee depreciated to an all time low of 60.72 against dollar. Today, it recovered at bit to 59.36 level.

“If the rupee maintains its current levels, developers could see more interest from NRI buyers as long as the capital value levels are also maintained and do not see a big hike during the period,” company’s Executive Director (residential) Shveta Jain said in a statement.

At current rupee levels and sluggish market conditions in many markets that are expected to remain that way for the next few months, NRIs could possibly benefit substantially from some attractive options available in the markets, she said.

However, she felt investments in the sector may not happen immediately.

“Though it is commonly felt that with each depreciation cycle, NRIs will find it cheaper to invest in the sector, this does not happen immediately,” Jain said.

The primary reason is that there are logistical constraints such as identifying the right property, negotiating a deal, being able to repatriate large sums of money in outright purchases and completing all the necessary documentation and formalities during the transaction life-cycle, she said.

“A typical purchase transaction may take a NRI buyer a period of a month to 3 months. During this period, the rupee may strengthen and the notional advantages that could accrue due to the rupee’s depreciation could be lost,” she said.

Besides, in such a situation, if the purchase is not outright and the NRI buyer needs to either pay in instalments or he is booking an under construction property, there may not be a guarantee that he will continue to enjoy the benefits of a depreciated rupee during the payment life-cycle.

“In the short term, the depreciation of the rupee may mainly benefit those buyers who are already in the process of finalising an existing transaction where they have still not converted their foreign exchange into rupee to pay for their purchase,” she added.

http://economictimes.indiatimes.com/markets/real-estate/realty-trends/rupee-depreciation-may-boost-nri-investments-in-realty-sector/articleshow/20815128.cms

Business worth Rs 300 crores expected at India property show in Dubai

DUBAI: A property show here featuring over 100 developers from India is expected to garner business worth Rs 300 crores in the three-day extravaganza, organisers have claimed.

Around 17,000 visitors are expected to witness properties ranging from Rs 1 million-230 million.

Organisers said they expect business worth Rs 3 billion over the three days beginning from today on the back of steep fall in rupee value against dirham.

This is the 12th edition of the Dubai show. Free seminars designed to offer insights and analysis for the attending visitors and are also being organised by industry gurus, fund managers and legal advisers.

For the first time, the organisers of the show are holding exclusive ‘Know Your City’ seminars along with the regular ones on legalities, vaastu and property investments.

“NRIs can take advantage of the rate of exchange which today is at 15.78 for 1 dirham and was at only 11.8 just a few years back which clearly means NRIs can get 33.72 per cent more for their money,” Sunil Jaiswal, CEO, Sumansa Exhibitions-Organisers of Indian Property Show said.

“Apart from all time devaluated rupee, the recent approval of the long pending Real Estate bill by Govt of India has paved way for much transparent Real Estate sector in India. This will be implemented in the due course and will boost more confidence within the Indian Expats providing more transparent regulation and deals,” he said.

“The depreciating rupee is not the finest news for the domestic market but for NRIs the weakening rupee in conversion provides a good opportunity to park their spare funds in India now,” Alok Anchan, Manager Sales , Rajesh LifeSpaces, Mumbai’s Leading developer, said.

“We expect that the NRI market shall contribute around 35-40 per cent of the total investments in real estate in India this year,” he said.

http://economictimes.indiatimes.com/markets/real-estate/news/business-worth-rs-300-crores-expected-at-india-property-show-in-dubai/articleshow/20698112.cms

Properties from across India to be showcased at UAE exhibition

DUBAI: Over 50 top developers from across India will be participating in a property fair here exclusively for the Non Resident Indians(NRIs).

The tenth edition of India homes fair will be held here from May 16-18.

Customers can choose properties from several projects that will be on display with varying options ranging from flats, apartments, row houses, plots and villas ranging from two million rupees to premium properties of up to Rs 15 crores and sizes ranging between 700 sq ft to over 10000 sq ft.

India’s housing finance company HDFC Ltd is also showcasing over 60,000 flats from across India at the exhibition.

“This is an interesting time for the NRI community to invest in the Indian real estate marketplace. Property buyers overseas normally have to address two key questions one is when to buy and the track record of the developer,” Ajay Sachdewa, Regional Head, Dubai & Gulf Cooperation Council (GCC), said.

The Gulf Cooperation Council includes six countries- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

“The interest rates are expected to be reduced this year and since over 80 per cent of the people opt for floating rates, they will stand to benefit from the falling interest rates. NRIs can avail a maximum loan of 80 per cent of the cost of the property and opt from amongst a full suite of flexible repayment options,” said Sachdeva.

http://economictimes.indiatimes.com/markets/real-estate/news/properties-from-across-india-to-be-showcased-at-uae-exhibition/articleshow/20045487.cms

Indian expatriates drive Dubai’s realty sector growth

Indian expatriates are among the top investors in Dubai’s property market, which is expected to grow 10-12 percent this year, company officials and analysts say.

“Expatriates, mainly from India, Russia and Saudi Arabia, are leading the growth.

Indians are among the top five investors in Dubai’s property market,” Ziad El Chaar, Managing Director of Dubai-based Damac Properties, told IANS in New Delhi.

He said Dubai’s real estate sector witnessed around 10 percent growth in 2012 and this was likely to further accelerate this year.

Dubai’s property market crashed in 2008-09 due to liquidity problems arising out of the global financial and economic crisis. The market witnessed negative or zero growth between 2008 and 2011.

“The liquidity situation has improved and the perception is also changing. People are now bullish on the real estate market. The good thing is that we are witnessing organic growth. Real investors are coming into the market,” Chaar said in a telephonic interview from Dubai.

According to data compiled by Saudi Arabia-based Samba Financial Group, prices of mid-range villas and apartments in Dubai increased by 20-30 percent in January year-on-year.

“Increasing evidence is emerging that the property market in the UAE, and Dubai in particular, has bottomed out and that a strong recovery is apparent in certain segments,” the Samba Financial Group said in its monthly bulletin.
Strong demand for recently launched projects indicate the recovery in the sector.

The first phase of Damac Properties’ $1 billion Damac Towers by Paramount project was sold out on launch day itself. The project, located close to Burj Khalifa, the world’s tallest building, is expected to be ready by the end of 2015.

“This is the biggest real estate project in Dubai since the 2008 crisis. The response indicates a strong demand in the sector,” the Damac Properties MD said.

He said Indian expatriates, as well as residents, have booked a large number of properties in Damac projects. “Indians are among the top five investors in Damac as well as in other projects,” he said.

Chaar said Indian investors were buying properties in Dubai because of tax benefits, attractive prices and geographical proximity.

Dubai’s largest real estate developer, Emaar, recently claimed that its luxury project – The Address The BLVD – located in the downtown area, was sold out 24 hours.

http://www.track2realty.com/indian-expatriates-drive-dubais-realty-sector-growth/

Indiabulls real estate enters agreement with Doha Bank for NRI deals

Indiabulls Real Estate Ltd has tied up with Doha Bank to offer its NRI customers exclusive deals on properties in India.

Complimentary Home Loan eligibility checks, special offers on Indiabulls properties and exclusive promotion for Doha Bank Indian customers will be part of the special offer.

The agreement offers mortgage loans to its NRI customers for acquiring properties in India, serving the growing demand from expatriate Indians for home loans and property acquisition in Indiabulls’ housing projects.

“With the opening of an office in Dubai last year, company’s future plans include opening of offices in other GCC countries including Qatar,” said Santosh Tandel, Regional Head – MENA Region, Indiabulls.

“We aim to connect more and provide seamless service through the arrangement. Gulf NRIs have always contributed significantly in the Indian economy whether it is remittances or investments in properties,” he said.

According to him, overall NRIs make up for 25 per cent of its business plus NRIs in GCC countries including Qatar are constantly looking for appropriate property investment opportunities both for end use as well as investment purpose.

“With an approximate 20 per cent of the Qatar¿s population comprising of Indians, the need to have a local representation catering to this segment was vital,” he said.

“The Indian real estate market, which is expected to reach USD 90 billion by 2015, is undergoing a shift. The fall of the rupee is encouraging more investment by Gulf-based NRIs into the realty market which offers relatively higher returns.

“Properties continue to be a preferred choice for expat Indians for investment and asset creation. What they look for is a good brand to invest and a price point which is good to enter. For NRI’s reputed developer with good track record, quality and possible price appreciation is an important factor,” Tandel said.

http://www.financialexpress.com/news/indiabulls-real-estate-enters-agreement-with-doha-bank-for-nri-deals/1090793/0