The real estate market in Gujarat has been reeling under pressure for some time now, but this is hardly a deterrent for Gujarati investors to explore other destinations.
If experts are to be believed, the US, South Africa and Dubai real estate markets are fast emerging as attractive markets for Gujaratis. The real estate market in the state, particularly Ahmedabad, is investor-driven.
This is one reason for the tense situation of the market at present. However, developers are claiming that market conditions are improving, owing to revival in demand from end-users. Ironically, investors are shying away from making fresh investments in the domestic real estate sector.
Instead, Gujarati investors are now exploring investment opportunities in the US, South Africa and Dubai real estate markets. Sources say that around 20% of the properties in Dubai’s iconic Al Burj are owned by Gujaratis.
This may be one of the factors that have brought Dubai-based Damac Properties to the state.
The company will organise road shows in Ahmedabad and Surat, besides Mumbai, on November 10 and 11 respectively.
On offer will be 65 properties in Dubai and the Middle East. The realtor from Dubai claims that they will offer special prices to Indian customers during the road show.
Consultants believe that high net-worth individuals (HNIs) planning to invest more than Rs25 crore in realty are increasingly opting for Dubai, while others are surveying South Africa and US markets.
Kishor Dedhia, MD of real estate consultancy firm, Space Management, said that Gujarati investors are looking at the South African market, as it offers a similar potential as India did in 1991, when reforms were first introduced here.
Similarly, people are also buying properties in the US due to lower property rates there. “However, Gujarat seems to be a better option with high growth rate and projects like Delhi-Mumbai Industrial Corridor (DMIC),” added Dedhia.