According
to a new survey, Mumbai has been
revealed as the favourite spot for Indian expats in the UAE to buy property,
despite the city's soaring house prices.
31%
of Indians in the UAE said that Mumbai was their preferred destination for
property investment in India, the results of the Indian Property Show survey
released recently revealed. Nearly 14,000 Indian expats in the UAE participated
in the survey.
"Despite
being the 'highly unaffordable' place, even for the upper middle income group
back home, Mumbai has become a top choice for non-resident Indians (NRIs) in
the UAE for investment in the real estate sector," said Mr. Sunil
Jaiswal, Chief executive, Sumansa Exhibitions, which organises the Indian
Property Show, to be held in Dubai May (2013)
month. House prices in Mumbai have increased by 66 % over the last 4
years, According to a Recent Report by Jones Lang LaSalle.
The
second most popular city among UAE expats was Bangalore, best known for its IT
industry, with 22.63% saying they would prefer to invest there during the next
3 to 6 months, up 5% compared with the Indian Property Show's findings past
year.
Chennai
was in 3rd place with 17.92 %, while Pune was in fourth place with 15.35 %. New
Delhi, however, slipped to 5th place from 3rd, with 10.23 % stating that it was
their preferred city to buy property.
"Our
survey actually points out that Mumbai is looked (to) for quick capital
appreciation, whereas Bangalore is more for ownership & better
lifestyle," said Mr Jaiswal, who added that he expected price appreciation
in Mumbai to be in the range of 125% to 133% between this year and 2017.
The
weak Indian rupee has helped to boost property investment in India, with the
soft currency effectively making prices cheaper for those buying homes in India
in UAE dirhams.
There
was a half and half divide between Indian expats who wanted to purchase
property for their own use and those who were looking to buy as an investment,
the survey found.
Apartments
proved much more popular options than villas or / land, with 78% opting for apartments.
Navi
Mumbai, Kochi, Gurgaon, Hyderabad & Coimbatore were named as other hot
destinations for buyers.
There
have been widespread expectations of a correction in the Mumbai's sky-high
rates in recent years, but with available land being scarce in the
overpopulated city, that has not materialised.
Mr.
Ramesh Nair, MD, Jones Lang LaSalle in India said, "In the Indian city which has
for years carried the unwholesome reputation of being the most overpriced in
terms of residential real estate valuations, there is no relief in sight for
aspiring home buyers"
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