Leading Dubai and the UAE real estate developers are rushing to India to hold road shows and property fairs in their bid to aggressively woo Indian property buyers before the country’s proposal to impose a hefty 20 per cent tax at source (TAS) for remittances kicks in, industry insiders said, reported arabianbusiness.com.
India has announced in its latest budget to hike TAS to 20 percent from the existing 5 percent on overseas remittances for property and a host of other investments from July 1.
Industry insiders said the tax hike move may also see both developers and investors opting for payments in cryptocurrencies – at least partly – for real estate assets.
A host of big names among leading UAE developers including Danube and Damac are learnt to be holding road shows in various Indian cities for marketing their residential properties to cash rich Indians.
Industry sources told Arabian Business that a high profile property show was being planned to be held in Mumbai on March 4-5 with participation of several leading Dubai developers. “Almost all leading [Dubai] developers will be showcasing their marquee residential projects at the show,” Shajai Jacob, CEO – GCC, Anarock Group, a leading real estate consultancy operating in India and GCC, told Arabian Business.
The 20 percent TAS will be applicable in cases where funds in excess of $700,000 are sent out of India under the Liberalised Remittance Scheme of the RBI
There is, growing apprehension among Dubai real estate circles that the hefty increase in TAS on foreign remittances could adversely impact Indian investments in the Gulf city’s real estate sector.
“The current rush of UAE developers to hold road and property shows in various Indian cities is part of their plans to aggressively woo Indian investors to lock in their investments in their projects – mostly off-plan projects – with loaded upfront investments before the July deadline,” a senior executive with a Delhi-based consultancy said.
“The demand from India is still very high, as always has been the case. Honestly, there is [so far] not much difference because of the announcement on hiking tax at source to 20 percent on foreign remittances,” Jacob said. “Currently, buyers who have already made investments earlier and bought in under construction projects, are, however, seen looking to make payments in advance to developers,” he said.
India’s move to impose a higher TAS on foreign remittances from the country is seen to be done to check further depreciation and volatility in its currency.
The 20 percent TAS will be applicable in cases where funds in excess of $700,000 are sent out of India under the Liberalised Remittance Scheme of the RBI.
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