Indian investors are considered to be among the top buyers of the Emirates, and they have given particular attention. In last few days we have seen that the slight stoppage of Indian economy has affected the real estate India, and of Dubai and that's why many developers went to Mumbai to attract the significant buyers of Dubai.
The Dubai land department holds a property show for three days in the financial capital of India which was ended with the developer's presentations such as MAG, Azizi developments, Dubai properties and Nakheel.
The chief executive Sanjay Manchanda of Nakheel said, “We work hard for the Indian market” as they are primary holder among the overseas buyers. The emerging market for India is an excellent attraction for every sector as its becoming strong day by day.
However, we have to admit the fact that buyer’s desire is affected for the Dubai real estate by the stoppage economic growth of India. Due to the last years launched debated government programme of demonetization, the economic growth has shown a low rate of 5.7% -which is lowest among the previous three years.
Indians buyers are very important for Dubai developers as last year they purchased the Dubai real estate of worth Dh12 billion which makes them the biggest overseas buyers. However, as compared to 2015, that figure has shown a 40% decline as per the Dubai land department. Dubai has its challenges as the weak global and oil economy, and the apartment prices have come down by 4% last year as per the Asteco report.
The general manager, Omar al Mesmar of Dubai Investment Park, said there are specific factors which have made the market down such as oil prices and the dollar. However the interest of Indian buyers in Dubai real estate is great, he added. He further said the Indian market is the main attraction for us, and we have to hold such exhibitions here.
To attract the Indian buyers, some developers also offered a striking payment plan with a free stay at a hotel. The Bollywood star R Madhavan inaugurated the event which was held in the city business district at Bandar Kurla Complex
According to developers, specific issues can hinder the sales.
Mr. Manchand of Nakheel said, there are few things which are making the Indian buyers think- which is the very close observing and checking by the authorities for investing overseas. The Indians are only allowed to remit abroad each year only $250,000 which is the biggest hurdle.
“People want to make sure that while investing overseas they are not disobeying any specific Indian rule or regulation.”
He added, the primary factor which has affected the buyer's interest is demonetization.
According to Mr. Manchand, “Indian investment is also affected not only overseas investment.” This condition in India is also impacting Dubai real estate somehow.
One of the visitors, Hitesh Rathod, who holds a business of transport, said he is looking for the opportunities to invest in Dubai as he got impressed on his first visit to Dubai of only a week time.
He said, prices are just like Mumbai, and I will be thinking to invest in Dubai.
The developers are quite optimistic that Indian will remain the big chunk of Dubai overseas investors because of the close geographical closeness, history of trade and large community fo Indian expat in Dubai.
The chief financial officer Vijay Sajjanhar of Dubai sports city said, with the time the relationship between India and UAE has to strengthen a lot.
According to the organizers of the event, last year the show held at Mumbai made sales of worth Dh1.2 billion with higher than 4,000 visitors.