Luring NRIs: Indian Developers Offer Lavish Incentives at Dubai Property Show
Indian real estate developers are pulling out all the stops to attract buyers for their unsold inventory, with a focus on enticing Non-Resident Indians (NRIs) based in the UAE. A range of incentives, from luxury cars and high-end motorcycles to substantial discounts, are being offered to entice potential investors.
The Dubai Property Show has emerged as a key platform for these developers to connect with UAE-based NRIs. This year's event has witnessed record participation, with over 90 real estate developers showcasing their projects.
The sluggish Indian real estate market has compelled developers to seek international business. The three-day Dubai Indian Property Show 2012, held at the Dubai World Trade Centre, provided a stage for over 90 developers to exhibit properties worth approximately Dh30 billion.
Leading the Charge with Luxury Incentives:
Wadia Group's Bombay Realty stands out with its extravagant offers. Each buyer of an apartment in the One ICC and Two ICC towers of their flagship Island City Center project in Dadar, Mumbai, will receive a luxury car. The minimum investment for a home in this project is Rs.6.3 Cr (Dh4.2 million). "Our properties are in high demand," stated Ms. Neha Jain, Deputy GM of Bombay Realty. "As a result, prices have increased by 12% to 15% since the pre-launch phase."
Durgesh Mehta, Joint MD of The Bombay Dyeing & Manufacturing Co, noted the NRI affinity for luxury properties, attributing it to their familiarity with the high-end amenities available in cities like Dubai. "The NRIs have a special inclination to the luxury segment as they are familiar with the luxury facilities of cities such as Dubai."
Indiabulls is also vying for NRI investment by offering a Harley Davidson motorcycle with each apartment purchase in their Blu-Worli and Sky-Parel projects. Santosh Tandel, Indiabulls' Mena Regional Head, observed a reluctance among investors towards residential projects, citing lower returns compared to the commercial sector. "The investors are not keen to invest on residential projects. According to him return in the residential sector is lower in comparison to the commercial sector."
Attractive Pricing and Discounts:
Artha Group, a pan-India developer, introduced "One World," a pre-launch villa community project near Old Mahabalipuram Road (OMR), Chennai. The 150-villa development, designed by internationally renowned firms, features villas priced between Rs.2.5 Cr (Dh1.67 million) and Rs.5 Cr (D3.33 million). The developer is also offering a discount of Dh66,666 on each purchase. Their other project, Zen, a 72-villa community in Bangalore, is priced between Rs.1.5 Cr (Dh1 million) and Rs.2.5 Cr (Dh1.67 million).
A&A, a Mumbai-based developer, promises a 50% return on investment within 15 months. However, not all developers are offering discounts and freebies. Godrej Realty, for instance, has chosen not to participate in this trend.