Indians and Pakistanis racing to pick up delayed Dubai Real Estate projects

  • February 29th, 2020

Dubai Real Estate having an urgency of investors for buying stalled Residential Projects. They are filling fresh funds to complete the projects before this year and the one-word reason is “Expo 2020”.

Investors mostly from India and Pakistan concentrated on the under-construction buildings that had reached up to 40% – 50% completion mark and the original developer ran out of funds.

Targeted Location:

There are some desirable projects that are under construction and it will take another 5-8 months for completion only. The locations for the projects are JVC (Jumeirah Village Circle), Arjan, and clusters within Dubailand.

Spike in demand:

Investors are showing interest in Expo 2020 they believe it would be the peak time for renting out or selling the entire building. Even after the Expo, these investors are confident they can generate optimal yields of at least 8% and above.

Cost of entry:

Investors are willing to pay to acquire the delayed projects. On average, recent deals have been in the Dh40 million to Dh60 million range. They are also particular that the projects they pick should not be on RERA’s (Real Estate Regulatory Agency) “Tanmia” list of shelved/delayed projects and now, they do not want to spend any time on more paperwork also.

Emsquare is an example who working on multiple “turnaround” projects, both as a consultant and as investor-partner where developers ran out of funds.

Need for speed:

Expo 2020 is the turning point for getting the projects ready in time, it is expected that Expo 2020 can recreate the graphical diagram of Dubai Real Estate.

Investors will also prefer to deal in those projects that have not seen any off-plan sales. So, they can set a fast pace towards project completion and then aim for a bulk leasing, completing projects, rented out and even on long leases also.