finance
A significant number of Indian investors are increasingly considering Dubai as a viable option for investment, attracted by the potential for considerable savings of 60 percent per square foot in the local property market. According to DAMAC Properties, this price advantage is complemented by a series of new regulations, including the recently enacted Strata law, which favors homeowners and enhances the attractiveness of the market for foreign investors.
As stated by DAMAC Properties, "As these new tougher and more stringent regulations take hold, Indian investors are looking to capitalize on the myriad of investment opportunities available within the emirate’s real estate market."
Recent data from Colliers International indicates that the average price per square foot in Dubai is $264. In contrast, property prices in central Mumbai are significantly higher at approximately $664 per square foot, as reported by Jones Lang LaSalle. This stark price disparity clearly illustrates the appeal of Dubai's real estate offerings.
Niall McLoughlin, Senior Vice-President of DAMAC Properties, noted, “At DAMAC Properties, we have seen a marked rise in interest across our Dubai portfolio from Indian investors; in January 2011, we recorded double-digit growth in inquiries compared to the same period last year.” He highlighted not only the influx of Indian investors but also increasing interest from emerging markets, including Sub-Saharan Africa and China, who seek quality assets at competitive prices.
According to McLoughlin, although initial confidence was impacted by the global economic slowdown, the introduction of new regulations in Dubai now provides more security for property buyers. This improved regulatory landscape fosters a safer investment environment, encouraging foreign stakeholders to participate in the market.
Furthermore, DAMAC Properties welcomed the revival of liquidity in the mortgage market, which is viewed as a substantial contributor to the resurgence of the emirate's real estate sector. "Now that banks and financial institutions have regained confidence in the market and are once again positioned to offer financing packages, this will start to mitigate the oversupply issue—a major factor contributing to the sector’s devaluation," McLoughlin explained.
The combination of competitive pricing, favorable regulations, and increased liquidity in the mortgage market makes Dubai an appealing destination for investors, particularly from India. With the current trends, it is evident that Dubai's real estate market is set to attract more international interest and investment.