CHALO DUBAI
Forget London – New York : Now Dubai is the hottest place for up market Indians

Dubai’s realty market is the new Eldorado for Indian’s well-heeled, who are buying residential and commercial spaces. Next to London, it’s the hottest realty destination. There are no official numbers but the market estimates that Indians spent Rs 4000 crore in Dubai’s concrete jungle in 2007.

The trend of Indian residents investing abroad is a recent one. The prime reason of investing is Dubai is tax incentives, no taxes on foreigners acquiring property in Dubai and no tax on income from capital gain.

To lure property buyers, the Dubai government has also introduced a system of granting resident visas to property owners. (You cannot work on this visa though).

In Sep, 2007, another booster was added to this property buying spree when the RBI (Reserve Bank of India) doubled the amount Indians could invest abroad annually from USD 1, 00,000 to USD 200,000 (Rs. 80 Lakhs).

Above all, despite its spiraling prices, property in Dubai is cheaper than buying a flat in Delhi or Mumbai. Land Price in Dubai Marina is around RS 18,000 per sq.ft. Prices in similar Mumbai localities would easily be around Rs. 60,000 per sq.ft. You can get a 1299 sq.ft apartment in Dubai for Rs. 2.6 crores, but a similar unit in Mumbai would be priced in multiples of that amount.

Some other compelling reasons for Indian to invest in Dubai:


    It’s close to India, with several flights everyday.
    Its glitzy malls offer an array of experiences.
    It’s swinging night clubs attract the worlds best DJ’s.
    Horse-racing, desert safaris, golf, gourmet restaurants, luxury hotels etc.
    Booming real estate sector.
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  • Sounds very good. But what’s next?

    If you are an investor, this could be a good move as you can expect decent appreciation and high rental returns without attracting any taxes.

    However if you are planning to migrate to Dubai, how will you be eligible to work or start your own business or get your whole family to Dubai? What does this visa permit you to do?

    Good for international investors but what about people who want to settle down in Dubai?
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  • Mate, you got some more advantages here:

    1.Great Geographic location
    2.More money making opportunities.
    3.No income tax at all.
    4.Higher returns on Real Estate investment than many other countries.
    5.Specialist free trade zones for business
    6.Regarded as the most sophisticated, futuristic and cosmopolitan cities in the world
    7.Unsurpassed safety and security.
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  • And the disadvantages?

    1.Fast paced life
    2.Traffic Woes
    3.No long-term surety of stay. You can never become a citizen.
    4. Unpredictable future of the region
    5.Expensive Real Estate
    6.Confusing laws and regulations
    7.Cost of living is high (expensive food and rentals)
    8.Extreme Climate & Unnatural/artificial beauty
    9. No Real Democracy
    10.Difficult to sponsor parents.
    11.Expensive and limited Education System
    12.No Retirement Benefits
    13.Red Tape
    14.Introduction of Taxation in coming months
    15.Some Racism
    16.Strange Islamic Laws like you cannot eat in public places during Ramadan and you need a permit to buy alcohol.
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  • Advantages???!!!

    Originally Posted by abhi
    Mate, you got some more advantages here:

    1.Great Geographic location
    2.More money making opportunities.
    3.No income tax at all.
    4.Higher returns on Real Estate investment than many other countries.
    5.Spet free trade zones for business
    6.Regarded as the most sophisticated, futuristic and cosmopolitan cities in the world
    7.Unsurpassed safety and security.



    Geographic location - yes, if you want to do business, it is the fulcrum between Asia, Africa and Europe. Most African companies use Dubai as a respectable place to locate their offices since most western companies won't deal directly with African locations ...

    Income Tax? Well, the Emirate charges you so high for every service that it becomes an alternate tax on you. This is called expenditure tax and is another face of income tax.

    But owning property only gives you residence status and not work permit. So, many of these advantages related to business and work can be done even if you rent in Dubai ...

    Also, warning!!! Once you get locked into a purchase, I have heard that some of the leading builders have diverted funds into a lavish lifestyle and have run out of funds due to this slowdown. Some of them are forcing buyers to fork out the full payment even when the construction is at nascent stages. Protesters are locked up. Media has been blanketed out and warned. And if you do not pay you get to be guest of the Govt at Dubai's infamous jails!!! This is probably the most important issue. There is rule of law only for you and me. When it comes to the ruling family what they say is law ... even when they resort to looting you.

    Dubai is a great place ... for a couple of weeks. Then it slowly turns into a dry, boring desert city which tries to cover it by pouring on the glitz and glamor - all at a high price!

    Under that glitz (which happens in good times) is a lot of sleaze (which comes out in bad times) and puts you in a very difficult position if you get in the middle. Not like DLF where 200 of you can gt together and force the company to get in line!

    This is why London will always remain a cool destination as the real old money destination with a rich heritage and a rule of law that treats everyone equally (but for the occassional racism) - show me where in Dubai can you stand upon a podium and criticise the Royal Family like you can do the Queen?; and NY will be the tolerant megapolis where you can just about do anything you want, including mix with the richest people in the world and at the same time have a world of cultural things to do, if you so desire.

    Property growth will happen in all three cities equally ... And all are in decline right now!

    cheers
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  • Indian Real estate

    Dear Dubai prop.

    This is an INDIAN REAL ESTATE FORUM!

    So, Pl dont mind why talk about Dubai???

    Originally Posted by dubaiproperties
    Now real estate market in dubai is realy bad
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  • Dubai real estate have crashed so very badly.. I wonder what the original poster has to say to that... I know people who have seen their property values drop by over 50% in glitzy dubai...

    By the way, at most it can be a weekend shopping destination.. it has weather worse than chennai and being someone with Indian mentality the glitzy malls will do you no good... the same stuff can be bought in Mumbai, Delhi at half the prices...
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  • Dubai's debt default fears shake investor confidence, rattle stock markets

    Dubai's debt default fears shake investor confidence, rattle stock markets

    27 November 2009, MUMBAI: Indian stocks and the rupee skidded on Friday as Dubai's debt woes sparked fears over corporate exposure to a key trading partner and that foreign funds will lose their appetite for risk.
    Banking, property and construction-related shares were among those hardest hit, after Dubai said two of its flagship firms planned to delay repayment on billions of dollar of debt. Foreign investors have poured roughly $15 billion into Indian stocks this year, helping drive a 75 percent rally through Thursday, and were among the sellers on Friday.

    Dubai said on Wednesday it wanted creditors of Dubai World and property group Nakheel to agree to a debt standstill as it restructures Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. Dubai World had $59 billion in liabilities as of August.

    "Whenever this sort of situation arises you will see a flight to safety, but I think within the emerging markets space India and China clearly are the favourites, so to that extent they will be protected on the downside," said Manish Sonthalia, portfolio manager at Motilal Oswal.

    The benchmark Sen pared losses to 2.2 percent on buying at lower levels in mid-afternoon trade after falling as much as 3.8 percent, outperforming the 4 percent drop in the MSCI Index of non-Japan Asia.
    India and the United Arab Emirates, of which Dubai is a member, are separated by the Arabian Sea and closely linked by the millions of Indians who work in the region. Indians make up about 40 percent of the UAE's population, accounting for 10 to 12 percent of India's inward remittances, CLSA said in a report.

    The UAE was the second-biggest export destination for India during the nine months through December 2008, accounting for $14.6 billion, or 11.15 percent of India's total -- a share that has been rising and closing in on the United States.

    "This event would be a trigger for investor risk aversion and that could slow down the flow of capital into emerging markets, and Indian stocks would be affected by that," said Gaurav Kapur, senior economist at ABN Amro Bank in Mumbai.

    Minister for trade Anand Sharma said India's economy was unlikely to be hard-hit by the situation in Dubai. "India is a very large economy. I don't think some development in the real estate in Dubai is going to impact the Indian economy," he told reporters.

    While Indian banks are heavily focused on the domestic market, they are active in handling remittances from overseas workers and India's banking index was down 3 percent.

    Bank of Baroda, which had a total exposure in the UAE of around 100 billion rupees ($2.1 billion) according to its chairman, saw its shares fall about 7 percent. The mid-sized lender has 10 branches in the Gulf, more than any other Indian bank, according to CLSA, but the exposure is mostly related to remittances, the brokerage said.

    SENTIMENT HIT

    Several market players said the biggest impact of Dubai's difficulties would be on sentiment. "The market was expensive, and it was looking for a reason to correct, and Dubai happened to be one," said Anand Shah, head of equities at Canara Robecco Mutual Fund. "Fundamentally, we are not impacted. But, if the risk appetite comes off, the liquidity flow could reduce," he said.

    Many Indian companies were quick to play down their exposure to Dubai. Engineering conglomerate Larsen & Toubro said it had exposure to Dubai of $20 million to $25 million. India's largest listed realty firm, DLF, and second ranked Unitech said they had no exposure to Dubai, and leading private bank ICICI Bank said it had no material exposure.

    Real estate shares were down 3.83 percent. Nagarjuna Construction said it was slowing down its real estate operations in Dubai. "We have only one real estate project in Dubai, to develop 1.45 million sq feet ... and right now in the Dubai real estate market we are going slow on this project," Y D Murthy, executive vice-president, finance, said.

    Emaar MGF, a joint venture between Indian financier MGF and the UAE's Emaar Properties, is one of several Indian property firms planning a listing. It has filed papers with the market regulator to raise about $830 million, about half the amount it had planned to raise in 2008.
    Emaar MGF declined comment, saying it was in a silent period after having filed the prospectus for its share offering.

    "For real estate per se, the pressure would be due to lack of investor appetite at a time when a slew of IPOs are lined by local real estate companies," ABN Amro's Kapur said.
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  • From what i know, there is no law in dubai for investors?
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  • Well Dubai is really new market for real estate. Hence there are no laws in place. Even though expats are allowed to own property with title registered in Land department the problem regarding Visa are really not clear. Dubai is great place to invest in terms of location and Tax free status and Quality of Living. However One should wait until the Laws become more clear.
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