Indians fear property bubble burst back home, find Dubai safe
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A few years ago buying a property in Dubai was a sign of affluence for Indians back home, but that’s not the case anymore.
Now it is being seen as a wise and prudent investment decision.
Besides the close proximity to India, price rationalisation and higher yields in Dubai, Indians continue to buy properties in the emirate because of a "possible" bursting of the Indian housing bubble, according to a property consultant.
Dubai Land Department data reveals Indians have spent over Dh3.7 billion to buy properties in the first half of 2012 alone, while Indians are also the topmost buyers in Burj Khalifa, the world’s tallest tower.
Mohanad Alwadiya, Managing Director, Harbor Real Estate, says: “Any real estate industry is somewhat cyclical and the Indian and Dubai industries are currently at different stages in their respective cycles.
“While the property market in Dubai has been contracting since the property bubble burst in late 2008, with values declining by up to 60 per cent in some areas, India, conversely, has experienced an ever growing property bubble, accompanied by rampant inflation and high interest rates.”
