Recently, the UAE real estate market face the low transactional activity and drop in investment due to the Middle East conflict. It bring uncertainty in UAE real estate market. It also cause caused volatility in energy and financial assets. Now the NRI investments are turn towards the Delhi NCR market for investment.
UAE Property Deals Drop 51%, investors tend towards NCR Real estate Market
The Goldman analysts reports also shows the decline in real estate transactional activities. It note that the overall transaction values in the first half of March reduce by 31% compared to previous year and fall down 51% as compared to the previous month since war starts.
This decline appears sharper than during several past disruptions in the market. It became more noticeable in the second week of March. Goldman Sachs reported that transaction values were down 42% compared to the previous year. This decline was largely due to weaknesses in the secondary market, which fell 59% year over year, especially in the villa segment, where the drop was 89% year over year.
India experience strong Real estate demand
Gulf-based NRIs, including senior executives, business owners, and high-net-worth individuals (HNIs), have often been a major force in India’s luxury residential real estate market. Real estate consultants estimate that NRIs have accounted for about 18 to 22% of primary residential sales in India’s top eight cities in recent years.
Around 60% of this NRI demand comes from buyers in the Gulf. Major cities like Mumbai, Hyderabad, Bengaluru, and Delhi-NCR have welcomed a significant number of luxury residential launches, mostly driven by this strong NRI interest.