How the rupee swings are bad for the UAE
The effect of Rupee drop on the Indian investments in the UAE real estate market is a matter of concern, Dr. Girija Vyas, Indian Housing Minister, told Gulf News.
Indians are the second-top investors in the UAE real estate market, after Emiratis, but there are worries that value depreciation of the Rupee might affect these investments, she said.
However, the minister highlighted that this impact will be in the short term as the difficulties that Indian currency and economy are passing through is a temporary phase.
Pointing the devaluation of rupee and the current economic situation, she said: “It is a time being issue as Indian step in to do changes.”
Confirming this, Sanjay Verma, Consul General of India, said the government has set up a fiscal committee to look at the current economic deficiency and currency drop trying to limited in a short phase.
“To manage these issues and improve the economic and financial situation the government is working on reducing imports and increasing exports,” he added.
During a two-day trade mission to the UAE, which organised by the New Delhi based National Real Estate Development Council and Indian Business Professional Council, Vyas discussed with UAE government, ways to explore opportunities in both countries.
Highlighting the purpose of the visit, Vyas said: “The aim of this trade mission is to enhance co-operation between India and UAE especially in the real estate sector.”
“Reality market is booming and UAE based companies should make use of these opportunities. Seven main developers from the UAE show their willingness to invest in India,” she said.
With the current value depreciation of the rupee, it is the best time for Indian to go back and invest in India realty market, said Amitabh Dhawan, Assistant Vice-President and Head of International Sales at Emaar MGF in India.
Expecting an increase in the flow of investments into the real estate market in India, he said: “Drop in the value of Rupee is expected to attract a lot of investors to the real estate market in India.”
However, this won’t be the same situation in the long term as the cost of the construction will be inflated comparing to the dollar value.
Rajat Kumar Saxena, Assistant Manager-Sales, said that their monthly sales have increased by 15 per cent during the last six month and most of them are foreign investors.
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