With property prices going down, more Indians are on a purchasing spree this year. The enquiries from the Indian Investors are on the same levels as previous years. But the investor interest is expected to turn into real transactions this year.
Ironically, the property prices in metro cities such as Delhi and Mumbai have gone up considerably, promptings Indians to venture outside country. Real estate prices in cities like Delhi and Mumbai have gone up by 40-50 per cent since 2009. In some areas of Mumbai, such as north-side, the real estate prices have crossed the 2008 peak values.
The introduction of new visa regime for property investors may also add to the investor interests in the region. The decision to extend the residential visa for foreign home buyers was part of measures taken by the government to support economic growth.
Property visa was always a controversial issue in the UAE for many years. The investors were often given conflicting information regarding the length of visas they would receive upon the purchase of a property.
According to Floyd Pinto, Manager, Customer Care at Better Homes, given the current conditions where properties are well priced as well as the mortgage sector opening up, ?it is a good opportunity for most Indians to take advantage of.
Dubai is getting a lot of attention after the correction of 30 to 50 per cent. Countries like Singapore, Mauritius, Thailand, and Malaysia are also attracting Indian investors. Some of them are purchasing for children who are studying abroad, while others are buying second or third properties as holiday homes.
The Better Homes experts believe that the bulk buyers are end users. Majority of investors are those residing in the UAE. They consider purchasing a lucrative option in comparison to paying rents.
The experts also predicted that market dynamics will continue to impede investor sentiment, curbing the demand in the short to medium term. The minimum value of Dhs1m for properties in the UAE could be challenging for some buyers as prices have dropped considerably in the past. However, the new requirements could mark the beginning of a gradual change in the market.
Sources: newzglobe.com, emirates 24/7, ameinfo.com