Indians dominate Dubai’s property sector
16 Aug 2012
Indians continue to dominate the real estate market in Dubai, accounting for nearly 18 per cent of foreign investments in the sector.
Indian investors bought 2,153 properties valued at Rs5,670 crore (Dh3.75 billion) in Dubai during the first half of 2012, revealed the Real Estate Investment Promotion and Management Centre at Dubai Land Department. Total FDI in the Dubai real estate market amounted to Rs33,300 crore (Dh22 billion) in H1, accounting for 12,875 properties.
Indians have emerged as the top buyers in the Dubai real estate market, ever since the emirate allowed foreigners to own properties. Pakistanis came a close second, having bought 1,814 properties worth Rs4,400 crore. They were followed by investors from Britain (who bought 1,546 units), Iran (1,057 units) and Russia (694 units). Saudi investors bought just 416 units in Dubai, while Americans and Canadians followed with 415 and 329 purchases respectively.
''The real estate sector performance is moving from strength to strength over the past two years,'' said Majida Ali Rashid, chairwoman of the centre. ''The market has been attracting more foreign investors, which reflects the solid national economy and its excellent growth potential.''
Sultan Butti bin Mejrin, director-general of the Dubai Land Department said that the total amount of land transactions in Dubai reached Dh63 billion in the first half of 2012, up by 21 per cent as compared to the same period of 2011. A total of 18,953 transactions were recorded consisting mostly of sales, mortgages and land development lease contract.
The real estate market in Dubai had shown high levels of flexibility in meeting investor requirements and trends during H1. He said prices have increased in the past few months due to high demand for land, villas and flats in certain areas.
Dubai's property prices have shed more than 60 per cent from their peak about four years ago. Real estate accounts for 13 per cent of the emirate's GDP. According to real estate anlaysts in the city, apartment prices were up by five per cent in the second quarter of 2012, whereas rents climbed by two per cent.
Indians own more than 100 of the 900 apartments in Burj Khalifa, the world's tallest building at 828 metres. Many affluent Indians invest in properties in the emirate, many of which are cheaper than apartments in south Mumbai. Bollywood stars, industrialists and other celebrities, besides NRIs from the Gulf and other parts of the world are the biggest buyers of property in Dubai.