Property consultant Knight Frank
NEW DELHI: Indians constitute a dominating group while buying real estate in Dubai, having invested nearly AED 10.5 billion during the first half of this year, says a report.
Between January and June 2014, Indians, British, Pakistanis and GCC investors accounted for around four-fifths of all real estate transactions in Dubai.
Property consultant Knight Frank, citing data from Dubai Land Department, said in the first half of 2014, a number of key nationalities including India dominated real estate investment activity in the emirate.
During January-June 2014, Indians invested close to AED 10.5 billion in the emirate, while British and Pakistani nationals spent AED 5.8 billion and AED 4.5 billion, respectively.
Meanwhile, UAE nationals purchased AED 12.6 billion worth of property in H1 2014 -- almost double the amount spent by Saudis (AED 3.4 billion), Qataris (AED 1.5 billion), Kuwaitis (AED 839 million), Omanis (AED 482 million) and Bahrainis (AED 247 million) combined.
Overall, the total amount invested in the emirate's property market in the first half of 2014 was AED 50 billion, equivalent to 44 per cent of the sum spent in 2013 as a whole, suggesting that, by last year's standards, real estate investment activity has softened in the first half of 2014.
However, the mainstream residential market is outperforming the prime segment in Dubai, mainly because these segments are very popular among western expatriates and continue to see healthy demand, Knight Frank, in its Autumn 2014 Dubai Residential Insight Report said.
Secondly, the new mortgage caps had a lesser impact on the mainstream segment and demand situation continued to be robust because of Dubai's strong economic conditions and buoyant labour market.
"We expect demand to outstrip supply in the short-term," the report said, adding that "the mainstream residential segment is anticipated to outperform prime over the next 12 months".