The recent demonetization of the Indian currency might threaten property sales in the UAE with experts and industry representatives expecting a negative impact, reported The National on Saturday.

In a bid to tackle the black market, the Indian government banned large denomination notes in a surprise move. This led to Indians struggling to secure cash, putting downward pressure on the Indian rupee, and it is expected to also put pressure on the Indian economy.

UAE investors, currently in India for the Dubai Property Show that kicked off on Friday, expect negative impacts from this situation since Indian investors make up the largest group of overseas investors in Dubai.

There is still optimism among the developers though, since the Indian market is still relatively stable and some even expect Indians to increasingly resort to overseas investments in a difficult domestic situation.