Corporate Grapevine

Published: Jan 15, 2022
Updated: Jan 15, 2022

Indian realty hit by Dubai craze

For the Indian property space, 2021 ended pretty much like CY20, with buoyant housing demand (up 71% yoy in CY21) and improvement in office leasing (Q4CY21 demand was the highest in the past eight quarters). Industry consolidation continued — nearly a third of the overall residential area today is sold by large listed and unlisted players.

But even as sales may have increased in terms of numbers, industry statistics show that the highest-ever sales in a quarter by real estate companies took place several years ago and real estate revenues are still only half of that figure.

Many rich Indians are now preferring to invest in Dubai rather than in India, as prices in the UAE are cheaper when compared to Mumbai. For instance, a 10,000 sq ft bungalow in Dubai’s District One costs only Rs 25 crore whereas a 2,500 sq ft flat in a posh Mumbai building can set you back as much as Rs 100 crore. Besides, UAE banks are offering 30-year loans at three per cent interest — making acquisition of properties cheaper.