With the domestic real estate market remaining subdued, both developers and high net worth investors (HNI) are heading overseas where the market is booming and returns on the property are much better.
Over the last six months, home buyers have made a beeline for overseas property markets. According to the Department of Real Estate Studies & Research, in UAE, Indians have invested a whopping Rs 16,800 crore in various properties as of September this year. Indian investments totalled to Rs 30,000 crore (AED 15.6 billion) in 2017.
“Dubai continues to be an attractive proposition for foreign investors. After a slump, there has been a surge in demand from HNIs for Dubai property in the last one year. We have seen the good interest for both mid-end and high-end property. What is attracting buyers is a better return, good construction quality and the presence of a sizeable India diaspora,” says Himanshu Gupta, general manager, Dubai Property Show.
Dubai Property Show is UAE’s popular realty platform for Indian nationals, held last week in Mumbai for the fourth consecutive year offering property starting from Rs 80 lakh. The promise of better returns is not just attracting home buyers but also developers.
“There are some initial issues as we have to deal with a different set of rules and compliances. But the return is very attractive. Our project is getting a very good response from both Indian and outside investors,” said a senior executive with Sobha Developers. Apart from Dubai, Sobha is also interested in London, US and Indonesia and is already in talks for another residential property at Oman.
Apart from Sobha, Ajmera Realty, Lodha and Puravankara all are exploring fortunes abroad. “While diversification always helps, some overseas locations offer better returns so it is always a good idea to explore opportunities,” Dhaval Ajmera, Director, Ajmera Realty said. Puravankara, meanwhile, is developing a project in Sri Lanka at Ja-Ela.
