DUBAI // With the rupee riding low against the dollar, Indian residents are looking to accelerate investment plans back home.
Soaring prices in New Delhi and financial hub Mumbai has made property in southern cities such as Bangalore and Chennai more attractive to non-resident Indians (NRIs).
For the thousands visiting the Indian Property Show at Dubai World Trade Centre at the weekend, the timing was just right.
"The exchange rate is good so this is really a good time to buy," said Rakesh Bhatia, who works in the oil and gas sector. He plans an investment in Bangalore to add to apartments in Delhi and Mumbai.
"Those two cities are out of reach, even with NRI money, so we are looking for a luxurious apartment in Bangalore - the city has better weather and we may live there once we go back to India."
The rupee's sharp dip against the US dollar, to which the UAE dirham is pegged, has made it tempting for Indians in the Emirates to buy property at home since they can buy more rupees with each dirham they earn.
The rupee has fallen by about 25 per cent against the US dollar since August last year and is currently 54 to the dollar.
Only Indian citizens, NRIs or Indians living overseas and persons of Indian origin, such as people who at one time held an Indian passport or whose parents were Indian citizens, are permitted to buy property in the country.
Developers confirmed interest had increased due to favourable exchange rates.
"The dip in the rupee has increased sales because people want to get value for their money," said Adrian Fernandez, manager of Expat projects and developers.
"Bangalore is number one now and even if rates are going up, it's not as high as Mumbai."
While two bedroom apartments in Bangalore are available for upwards of 6 million rupees (Dh404,300), the price for similar property in Mumbai and Delhi is upwards of 20 million rupees (Dh1.3m).
The growing investment appetite of NRIs has also prompted real estate management companies to set up shop in Dubai.
"We saw a business need because NRIs want to invest at home but often do not have good experiences with feedback from individual brokers once they have put in their money," said Nishant Singhal, the director of Investors Clinic.
"Our job is to understand whether they are buying for their own use, for investment, what their budget is and whether they want to resell property.
"The volume of transactions is only going up because of the rupee depreciation since they make automatic gains."
High prices in Mumbai did not put off some from investing their dirhams in their hometown.
"The price factor does make it very difficult to fulfil your dream and it's out of reach unless we plan well," said Ashok Rai, who works in insurance and is on the lookout for a fourth investment in Mumbai.
"We're from Mumbai, our roots are there and there are family ties so we can only think of investing there," added his wife, Asha.
However, some visitors to the property fair said inflated prices in major Indian cities did not make investments worthwhile. Rama Subramaniam, who has three properties in Chennai, has decided against buying a fourth.
"Why should I go for real estate when if I invest in mutual funds the trend is a 10-15 per cent return?" asked Mr Subramaniam, a risk manager. "There is no point in blocking my money anymore in real estate."
Sunil Agarwal, a sales manager, said he would postpone his first property purchase because he believes the rupee will fall further.
"If it does then I will have additional money available to invest," he added.
rtalwar@thenational.ae
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
THE BIG THREE
NOVAK DJOKOVIC
19 grand slam singles titles
Wimbledon: 5 (2011, 14, 15, 18, 19)
French Open: 2 (2016, 21)
US Open: 3 (2011, 15, 18)
Australian Open: 9 (2008, 11, 12, 13, 15, 16, 19, 20, 21)
Prize money: $150m
ROGER FEDERER
20 grand slam singles titles
Wimbledon: 8 (2003, 04, 05, 06, 07, 09, 12, 17)
French Open: 1 (2009)
US Open: 5 (2004, 05, 06, 07, 08)
Australian Open: 6 (2004, 06, 07, 10, 17, 18)
Prize money: $130m
RAFAEL NADAL
20 grand slam singles titles
Wimbledon: 2 (2008, 10)
French Open: 13 (2005, 06, 07, 08, 10, 11, 12, 13, 14, 17, 18, 19, 20)
US Open: 4 (2010, 13, 17, 19)
Australian Open: 1 (2009)
Prize money: $125m
UAE currency: the story behind the money in your pockets
The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
