Did you know that the Dubai Land Department transactions report documented a Dh 259 bn worth of real estate transactions during 2016? And did you know that, in a regional survey by Cluttons, Dubai was chosen over London as ‘the most preferred property investment location’ for the year 2017? Everybody seems to think that, buying a property in Dubai nowadays could be one of the smartest decisions that you will ever make. What is its secret? How did Dubai’s real estate market manage to be the top in the region? After an extensive research, we have found some logical reasons that helped position Dubai on top of the region’s real estate market. Now let’s discuss them together.
The good investment
An investor should always consider the economic growth of the region before investing in real estate; one should always go for consistently growing economies. Back in 2015, Dubai was announced to be the 5th fastest growing economy in the world. What better economy could an investor ask for? Dubai is the perfect region for a real estate investment. In addition to that, the population of Dubai is increasing by day; people are coming from all over the world in search of good lifestyles, careers, and business opportunities. To meet the demand, new projects are opening every day, innovative ideas are launching, and consistent development are being made, which again is good for you as an investor.
Another attractive thing about Dubai is its rental returns; compared to other parts of the world, Dubai’s rental return is relatively high. With renting, an investor can yield from 6 to 10%. Whether you decided to resell or rent in Dubai, you are a winner. All of these reasons have contributed to placing Dubai’s real estate market on top.
The UAE property visa
Another thing that helped with boosting the real estate market in Dubai is that, once you buy a property with certain criteria in Dubai, you instantly become eligible for what is called a ‘resident visa’.
The wide range of options
When it comes to real estate in Dubai, there is a wide range of options that one can choose from. You can find all types of commercial as well as residential properties. New projects launch every day. You can find apartments, villas, offices, and anything else you might want.
The affordable housing options
Yes, Dubai is known for some of the most luxurious homes out there and that is what sets it apart from its competitors in other parts of the world. However, lately, a shift towards more affordable housing options has been taking place. This positive shift towards middle-income housing options has helped with diversifying Dubai’s real estate offerings; by offering a pricing spectrum, developers are attracting investors and end users alike.
No property tax
Unlike the case in many other countries, in Dubai, there is no such thing as a property tax. Once you have paid for a property, it instantly becomes yours; you don’t owe anything to the government.
The reputable developers
Nowadays, Dubai is filled with projects that were built by reputed names. Starting October of 2016, developers (and brokers) were obliged to get approvals from Dubai’s Real Estate Regulatory Authority (RERA) before they advertise for their projects in the media. With these big names in the market and this law in action, more people are buying in Dubai because they know their money is safe.
Another big reason behind the real estate boost in Dubai is security. While many middle-eastern countries are going through periods of political disturbance, Dubai remains one of the safest and most stable regions in the area. This is a very encouraging environment to those who look to build businesses or start families, don’t you think?
The foreigner’s rights to buy, sell, and lease properties
Back in 2002, with the creation of the freehold decree in Dubai, foreigners were given the right to buy, sell, and lease properties. This law made Dubai a far more attractive destination for expats, which in turn made Dubai an even more attractive destination for developers.
With Dubai Expo 2020 coming up, the real estate market is expected to grow and expand even more. Dubai Expo 2020 is expected to bring growth in commerce and an increase in the employment opportunities (HSBC estimated a 350,000 direct jobs and 1,000,000 indirect ones). These employment opportunities will, in turn, affect the population of Dubai. An increasing population means an increasing demand for residential properties. Thus, Firms from all over the world are expected to consider making Dubai their next expansion spot. If you haven’t yet, maybe you should consider Dubai for your next real estate investment.