A Middle East developer BNW Developments has seen Australian interest in tax-free property surge. Their projects include Orvessa Residences by Michel Adam in Dubai. Source: BNW
Super-rich billionaires like Adrian Portelli aren’t the only ones racing to stash cash offshore after new federal laws – with everyday Aussie mums and dads fleeing to desert tax havens too.
A multi-billion surge in Australian property profits since John Howard introduced the world’s most generous landlord tax benefits has created a new class of property richlisters, placing neighbourhood landlords on the same playing field as offshore billionaires.
A full-blown exodus is underway headed for the Middle East, as internationally renowned global developers touch down in Australia this week to boost it along – with Australians already owning 5.7 per cent of the entire Dubai property market, the same as oil-rich neighbours like Saudi Arabia.
BNW Developments – one of the UAE’s fastest-growing real estate developers and Ras al Khaimah’s largest private developer – has now opened an office in Sydney. Source: BNW
Ex Bollywood star turned managing director and co-founder of BNW Developments Vivek Oberoi. Source: Twitter/@vivekoberoi
The math is alluring for those who can afford it – Dubai properties’ 6 to 10 per cent tax-free returns make Sydney’s 3.7 per cent average yields look dismal. There is zero personal income tax. No capital gains tax. No recurring land tax.
Add to that, spending $750,000 (AED 2 million) on property unlocks a 10-year renewable golden visa – giving Aussies long-term residency, a lavish lifestyle and a global safety net.
UAE real estate giant BNW Developments – a premier developer with $12 billion gross development value – is among those speeding up the exodus, opening up shop in Sydney’s west at Bella Vista on Thursday.
Co-founded by chairman Dr Ankur Aggarwal and Bollywood star-turned-managing director Dr Vivek Anand Oberoi, BNW told The Courier-Mail there was a massive surge in local engagement post-federal budget.
“Since the federal budget announcements, we have seen increased engagement from Australian investors seeking to understand property opportunities in Dubai and Ras al Khaimah,” they said.
“The tax changes have become part of the broader conversation around portfolio diversification, particularly as investors assess how future changes may affect the economics of Australian residential property.”
BNW project Radisson Hotel & Residences in Ras al Khaimah Central. Source: BNW
UAE real estate giant BNW Developments chairman Dr Ankur Aggarwal. Source: BNW.
BNW confirmed interest was coming from everyday buyers to mega-rich family offices, with the $750,000 golden visa threshold driving conversations.
“Our Australian buyer interest spans a broad spectrum, from individual and family investors to high-net-worth individuals, family offices and professional investment networks,” BNW said. “We are seeing interest from investors considering entry-level units through to buyers looking at larger and higher-value residences.”
They said the decision to set up in Australia also took a longer term view of the market and the strength of the Australian investor community “who are looking beyond their domestic market and exploring the UAE as an additional real estate market, rather than making decisions based solely on changes to Australian tax policy”.
This as spooked Aussie landlords abandon the domestic market in droves, with Commonwealth Bank reporting local investor loan applications plunged a staggering 28 per cent since federal tax hikes – compared to a 9 per cent dip for owner-occupiers.
Adrian Portelli has been a prolific real estate investor on The Block TV series finales. Pictures: Channel 9
One of the most high profile exits was that of former mega bidder on The Block, lottery billionaire Adrian Portelli, who slammed local regulators and tax authorities over the need to uproot his family and head offshore.
“They are chasing young entrepreneurs, very talented Australians. People of wealth and success are moving. They are fleeing … I just don’t feel comfortable having all my eggs in one basket in Australia,” Mr Portelli said.
Dr Aggarwal, who is in Sydney this week, said Australian investors are increasingly looking beyond the local market for international diversification.
“The UAE offers a very different proposition to Australia, combining an established international property sector with strong tourism and population growth, attractive tax settings and a pathway to long-term residency,” Dr Aggarwal said. “With our Sydney office, we can bring our development pipeline directly to Australian investors.”
A $750,000 real estate purchase in UAE triggers eligibility for a renewable 10-year golden visa. Source: BNW
Aqua Arc project in Ras al Khaimah. Source: BNW.
On offer by BNW are ultra-exclusive developments across Dubai and Ras al Khaimah, with Australian buyers already scoping out the world’s first Tonino Lamborghini Residences, oceanfront Dolce Residences, Taj Wellington Mews, and Radisson Blu Hotels and Residences.
Foreign buyers already make up over 60 per cent of property transactions on Al Marjan Island, situated next door to the upcoming multibillion-dollar Wynn Al Marjan Island – the UAE’s first integrated resort and casino, which is expected to draw 5.5 million visitors a year by 2030.