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Dubai's Tax Free Property Status Lures Indian Investors

Indian investors look to capitalise on the emirate's secure investment environment, tax-free returns and tightly regulated property market
DUBAI, 8th June 2011: Tax-free returns are enticing an increasing number of Indian investors into Dubai's property market according to the Middle East's leading independent real estate company, DAMAC Properties .

Attracted by Dubai's world-class infrastructure, secure investment environment, tax-free returns and tightly regulated property market, Indian investors are increasingly looking to invest in Dubai's prime real estate market. With potential capital appreciation and tax-free rental yields ranging from 7- 12%, according to CBRE, premium properties in Dubai offer a safe and lucrative long-term investment.

Niall McLoughlin, Senior Vice President DAMAC Properties said: "At DAMAC Properties , we have witnessed a significant increase in enquiries about our Dubai portfolio from Indian investors looking to capitalise on favourable conditions in a secure market. Indian investors are weighing up the impact of property taxes at home, and deciding that Dubai is a more attractive market for sustainable long term investment."

Dubai's property market appeals to Indian investors because there is zero tax on rental returns, and no capital gains tax. This is compared to India which demands tax on rental income as well as capital gains tax of about 20 per cent.

"Tax is a big consideration in any investment decision, but Dubai takes tax out of the equation. It means investors considering purchasing property in Dubai can focus on evaluating rental yields and potential capital gains, without having to think about the possible tax implications of their investment" Mc Loughlin added.

In addition to the tax relief offered by Dubai, Indian investors are increasingly seeking take advantage of a 60 per cent price disparity between the Emirate and the sub-continent. At an average price per square foot of $264 in Dubai, according to Colliers International, property is now 60% cheaper than in central Mumbai, where the price per square foot is $664 according to Jones Lang LaSalle.

Dubai's property market is also gaining favour with foreign investors due to the implementation of a raft of new regulations, such as the new Strata law, which favours home owners. As these new tougher and more stringent regulations take hold, Indian investors are looking to take advantage of the plethora of investment opportunities that exist within the emirate's real estate market.

The recent Dubai Real Estate Market Overview by leading real estate services firm, Jones Lang LaSalle supports DAMAC Properties ' findings and suggests that the total value of residential property transactions in Dubai increased by 30% in 2010 over 2009, and the number of actual transactions increased by 20% during the same period. The report also suggested that as prices stabilise in some sectors and lending conditions continue to ease transaction volumes could increase even further during 2011.

"We believe that investors will always be attracted to all of the positive attributes that Dubai has to offer - world-class infrastructure; strategic location; established tourist destinations, proven business centres; a highly skilled expat workforce; and most importantly strong and stable government leadership," Mc Loughlin concluded.

DAMAC Properties continues to deliver luxury projects across the MENA region, with 28 buildings, comprising 6045 units, delivered to date. Before the end of the year, DAMAC Properties will complete a further 8 buildings comprising 1,329 units. DAMAC Properties will be an enduring fixture in the Dubai landscape, and Dubai itself will continue to be a major draw for Indian investors.

Further information is available at www.damacproperties.com

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DAMAC Properties , part of DAMAC Holdings was established in 2002, as a private residential, leisure and commercial developer in Dubai and the Middle East. Since then, DAMAC Properties has expanded rapidly into North Africa, Jordan, Lebanon, Qatar and Saudi Arabia.

DAMAC Properties has completed 28 buildings to date with 6045 units and spanning 10,619,469.00 sq feet with projects such as The Crescent and Lago Vista at IMPZ, Executive Heights and Smart Heights in TECOM, Lake View and Lake Terrace at Jumeirah Lake Towers, Business Tower and XL Tower at Business Bay and Ocean Heights, The Waves and Marina Terrace at the Dubai Marina.

Before the end of this year (2011) DAMAC Properties will complete a further 8 buildings comprising 1,329 units spanning 2,513,015.00 sq feet

DAMAC Properties also has a further 50 buildings at various stages of progress across the Middle East, North Africa region These consist of 9849 units, spanning 16,886,151.00 sq feet.

In June 2010, DAMAC Properties further reinforced its position as a premium developer with the launch of DAMAC Tower in Beirut, Lebanon. A 28 iconic tower, this project is in association with Italian design group, VERSACE, with all interiors being designed by Versace Home.

The company has a diverse range of expertise that allows them to have a good oversight and management of all aspects of a project right from the acquisition of land, appointment of architects and designers, construction and sales to after sales service.

The company's projects are located in the most desirable and exclusive locations and homes are built to a high quality specification that has become synonymous with the group. DAMAC Properties aims to develop projects that include residential, commercial and leisure facilities that will create an integrated community.

In addition to support services provided by the Dubai headquarters, the company's comprehensive Customer Care Program provides solutions through its vast network with offices in the UAE, Jordan, Lebanon, Egypt, KSA and Qatar.

Further information is available at www.damacproperties.com

For more information please contact:
Niall McLoughlin, Senior Vice President - Corporate Communications - DAMAC.
Tel: +971 4 04 3732190 │ Fax: 00 9714 3732335 │Mobile +971 50 6531824.
emaiI: niall.mcloughlin@damacgroup.com

Carolin Dmello, IPAN Hill & Knowlton
Mobile: +91 9819256031 │email: cdmello@ipanhillandknowlton.com

© Press Release 2011