AHMEDABAD: The real estate market in Gujarat has been reeling under pressure for some time now. While city's investors shy away from making fresh investments in the cost-sensitive real estate market of Ahmedabad, some high net worth individuals (HNIs) are parking their funds in the safe realty haven of Dubai.
According to realtors, a growing number of Gujaratis have been exploring investment opportunities for luxury as well as mid-luxury properties especially in Dubai.
"A few months ago, my son joined an undergraduate programme at a British university in Dubai and I decided to invest in a residential property there for his convenience. The prices of luxury properties had become half when I bought it but I hope to get good appreciation for the property once he completes his education," said an Ahmedabad based businessman, who did not wish to be named. According to property consultancy CBRE, around 65,000 residential units are expected to be delivered in Dubai from 2015 to 2017. Around 20,000 to 25,000 residential units are estimated to be delivered by developers in Dubai in 2015.
"It is a good time to buy property in Dubai, be it economy or luxury and Gujaratis are exploring investment options in two and three bedroom house projects in Dubai. The prices are relatively low and many peripheral areas are opening up in Dubai," said Monil Parikh, director of Parikh Infracon. Dubai will host Expo 2020 and is expecting 25 million visitors from around the world.
The demand for properties in Dubai has lured builders from Gujarat to set up residential and hotel projects there. According to sources, Ahmedabad's JP Iscon Group, Dev Group and a few other construction companies are exploring the option of setting up residential and hotels in Dubai.
"In Dubai, two bedroom houses see the most demand to cater to migrants from around the world. Besides, Dubai is well connected to Gujarat and the real estate market has seen improvement in the last one year," said Jateen Gupta, managing director of JP Iscon, which is planning to launch a midscale-luxury residential project in Dubai.
However, Neeraj Tomar, head--Ahmedabad operations for Jones Lang Lasalle said that the global fall in oil prices could well fuel property boom in the US, the United Kingdom and Singapore.