Representative Image
NEW DELHI: Indian investors are preparing to invest in Saudi Arabia’s booming real estate market, which they predict will surpass the UAE in the coming years.
The Kingdom is becoming an increasingly desirable location for investors, including those in real estate, thanks to significant legislative and budgetary efforts as well as continuing megaprojects in non-oil industries under Vision 2030.
According to Manish Mohan, senior director of the Confederation of Indian Industry, there are enormous prospects in Saudi Arabia’s real estate market.
Indian investors anticipate profits from the sector that will be at least as high as those they received from investing in Dubai real estate decades ago.
Mohan anticipated that it would occur very soon.
“Saudi Arabia would be a different story in the next five years. Property prices would be skyrocketing, that’s why investment in property makes sense,” he said.
“Indians are not only seeing good returns but also a good opportunity, it’s a profitable business for them.”
One of the Indian pioneers eyeing Saudi property is Strata, a fractional investment fund in premium real estate assets, which plans to invest $500 million over the next five years.
“Everyone has only one thing to say — if you want to put money, you need to put money in Saudi Arabia,” the company’s chief executive officer, Sudarshan Lodha, told Arab News after a recent visit to Saudi Arabia.
“We took a trip and understood that there are opportunities to have an exponential return,” he said.
“Maybe the initial years might be a smaller deployment of about $20 million to $50 million … a five-year plan would be close to half-a-billion dollars.”
Lodha was planning to focus on offices and warehousing in the beginning and returns of between 12 percent and 18 percent at least.
“Anything lower than that is not attractive to us, so if any of the markets today are going to offer us less than that percentage then we will not be there,” he added.
Lodha noted that Saudi Arabia could emerge as a market bigger than the UAE where, he pointed out, the property market, especially in Dubai, had already stabilized.
“It’s been 20 to 30 years of constant development et cetera, it’s predictable growth in my view as of today,” he said. “But for Saudi, with the kind of vision they are sitting on today, there is a bigger scope to overachieve what Dubai has built in the last three decades.”
(This story has not been edited by Bharat Express staff and is auto-generated from a syndicated feed.)
