DUBAI : United Arab Emirates billionaires buying a holiday home in the world's premier cities now look for both prime property locations and an income-generating guarantee.
Pace offers buyers in Dubai two choices for its MahaNakhon condo project: fully furnished units or a yearly5%minimum return guarantee.
The motives for property acquisition have shifted, said Dubai-based Gulf News, which reported on research by property consultant Savills.
Previously investors sought safe havens for property assets, but analysts at the consultant now detect increasing interest in income-producing assets.
Noting the trend, Thai luxury property developer Pace Development Plc offered buyers in Dubai two choices for its MahaNakhon condo project at its roadshow last week: fully furnished units or a yearly 5% minimum return guarantee.
Chief executive Sorapoj Techakraisri said investors in Dubai sought property as an investment as banks in Islamic countries do not offer interest on deposit accounts.
Some 85% of Dubai residents are familiar with investing in property in major cities, and Bangkok is their new target because they consider it a gateway to Asean.
"Dubai investors see Bangkok property rising in value as Thailand will benefit from Asean integration by 2016," he said. "They have no questions about political issues."
The company sold seven units worth US$9 million in total on the first day of the roadshow, with a sales target of 400 million baht for the two-day event.
One is a 55-million-baht residential unit with a guaranteed-return offer. Mr Sorapoj said the targeted rental rate will be around 1,000 baht per square metre a month for the first two years after the units are complete. The other six units are for the buyers' own use and investment, said Mr Sorapoj.
"Residential buyers in Dubai prefer something superlative and unique. For them, bigger is better," he said. "They are also confident in the Thai economy."
The roadshow was created by Dubai-based buyer Asgar Shakoor Patel, who acquired five units at the MahaNakhon worth 800 million baht this year.
Mr Patel, the 20th-richest Indian in the Gulf Corporation Council (GCC) ranked by Arabian Business magazine, is the group chairman of the House of Patels, an Indian investment group in transport, logistics, property and finance.
House of Patels is also the Middle East sales agent for MahaNakhon, the 19-billion-baht project with 200 leasehold units, with 50% already sold. The 77-floor, 314-metre mix-used building will be the tallest building in Thailand with a value of about $640 million.