Consider the recent visit to India by the senior officials of the tourism authority of Abu Dhabi. Scores of road shows were undertaken in the prominent cities in India. The response to these promotional activities was so good that enquiries are now flooding the prominent property portals in the UAE regarding property for sale for both commercial ventures and also for residential purposes.
A prime property for sale is likely to fetch astronomical prices if scores of business houses have thrown in the hat to do the bidding. Most often, property prices appreciate significantly when there are more takers for a particular piece of property.
Almost all the prominent business houses from India are now considering investments in property in the UAE. The recent road shows undertaken by the tourism authority of Abu Dhabi concentrated more efforts to reach out to places in India from which there were fewer visitors to the UAE. To present their case in the financial capital of India, Mumbai other than the road shows many seminars and other investment meets were also undertaken. The promotional activities in other parts of the country namely in Chennai, Bangalore, Delhi and Ahmadabad were very popular.
Instead of the skilled and unskilled workers, the respondents to these road shows in these prominent cities in India are those high profile tourists and the businessmen who wish to make significant investments and earn significantly within a short span of time. The road shows have helped to create investor confidence among the investor community in India. There are two types of gross domestic investments. They are the gross domestic private investment and the gross domestic public investment. In some of the advanced countries about one-fourth of the gross domestic private investment is into development of real estate. Now consider the situation in the UAE. Even though the gross domestic private investment undertaken by the private sector to develop real estate is significant, the government investment in real estate is rather high.
The gross domestic public investment in real estate is rather significant because even the national government wants to have a share in the profits. The UAE government does not hesitate to commit billions of AED into real estate ventures because it has made profits continuously from almost all investments in the last decade. Thus, if you own a property in the UAE and intend to sell that property sale proceedings will be high but the tax on profits so generated is not that much high as in other developing countries because the investment policy of the UAE government is so liberal and they want an investor to generate profits.
Most often in unregulated economies, it is possible to create wild fluctuations in demand and supply. It is the greed to make fast profits that encourages such a trend. However, violent fluctuations in demand and supply have eroded investor confidence in those economies resulting in flight of capital and the subsequent devaluation of the national currencies.
In the UAE, wild fluctuations in demand and supply are not possible due to the stringent government regulations that regulate the real estate sector and make it an attractive investment option for both realtors and business houses.
Subscribe to:
Post Comments (Atom)
