Dubai emerging as a hot property destination
Investors from several countires, such as UK, US, Russia, Iran and India consider the Emirate to be ideal for investment
Since 2002, when the government in Dubai f or mulated l aws t o allow foreigners to buy, sell, lease or rent properties, it has been taking several measures to help Dubai’s real estate market emerge as an important destination on the global map.
And that’s the reason why investors from several countries such as US, UK, Russia, Iran, India, Pakistan, etc consider Dubai among their most preferred real estate markets for investment. According to an estimate, Indians have invested approximately ₹ 132.6 billion in the Dubai real estate sector in the first half of 2013. Within this sector, the luxury segment is believed to be the most attractive to investors, with prime real estate driving the market.
Today, more than 200 development f ir ms, prominent among them being DAMAC, Emaar, Tameer, Nakheel, Deyaar, etc, are engaged in building world-class residen- tial luxury, mixed- use and commercial properties. Some of the prominent upcoming projects which are attracting international investors are AKOYA, BLVD Crescent Tower II, Deira Islands Mall, Palm West Beach, ‘The Atria’ Bluewaters Island, Dubai Water Canal, The Lagoons, to name a few.
Most of the projects have interesting features. Damac Properties –recently launched Akoya Drive and NAIA - hotel and hotel apartments. It boasts of a 1.3 km long Akoya Drive, on of Dubai’s longest shopping strip experiences which includes an outdoor cinema, ice- skating rink and kids’ entertainment area. The other features of this township are the Akoya Park, The Trump International Golf Club and branded villa concepts, The Trump Estates, mansions, luxury units and retail centre.
DAMAC maintains that one of the unique features of Akoya is park life living - about 4.3 million sq ft private park space has been provided for villas with a starting price point of ₹ 3.2 crore.
It will include its own openair amphitheatre, running and cycling tracks, an 18-hole putting green, barbecue area, café, skate- boarding park, floodlight football pitch, basketball, tennis and badminton courts, children’s water play area, a life-sized chess board and a luxurious beach-fronted swimming pool.“Of late there is an upturn in the real estate market sentiments in Dubai,” says Hussain Sajwani, founder and chairman of Damac Properties. He says they are getting a good response from buyers all over the world, especially from neighbouring countries like India. “Indians are the third highest buyers of our projects.”
Real estate experts give credit to the stringent regulatory measures which has helped improve the real estate market in Dubai. “Earlier many developers launched projects without any land and approval because the real estate norms were not so tough. But the government has regularised the market very well. Today without land title and all necessary approvals, no project can be launched here,” says one of the marketing executives of Damac.
But what attracts Indian i nvestors t o Dubai? Says Pradeep Mishra, a Delhi-based architect and town planner, “As Dubai is just a two-hour flight away from much of India, it is seen as a luxury destination, close to home, with many facilities and infrastructure set up to welcome Indians, following many years of strong relations. Another reason would be tax-free returns on property that is enticing an increasing number of Indian investors into Dubai’s property market. With current capital appreciation and tax- f ree rental yields ranging from 7% to 12% depending on the property and location, Dubai is considered a safe and lucrative long-term investment.”
With an attractive t ax regime, coupled with Dubai’s strategic location, its cosmopolitan character,it is an attractive option for purchase of a second home.