Why must you invest in Dubai real estate market

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The year 2002 has marked a new era in the history of Dubai real estate. Up until then, nationals of only UAE and Gulf Cooperation Council (GCC) could own property in Dubai. However, all that changed in 2002, when, by a royal decree, the Dubai real estate market opened up for foreign ownership. Since then, there has been an explosive growth in the Dubai real estate sector. Of course, there have been hurdles along the way, like the 2008-2009 global financial crisis, but, Dubai showed character to come back strong and emerge triumphant.

There are a number of reasons that have spurred and sustained this growth.

Below we take a look at some of the top reasons that make Dubai real estate market a good place to invest.

  1. Relatively Affordable Properties: When compared to property prices in major cities worldwide, Dubai property prices are far less expensive. This one factor alone draws a lot of investors to the shores of Dubai.
  2. Capital Appreciation & High Rental Yield: As per ‘The Hub Report 2015’, from 2010-2014, Dubai saw an enhancement of 59% in its premium home prices, a figure better than that of London, New York, Paris, Hong Kong, Sydney and Singapore The rental yields have also been in the 7-8 % range, a pretty high figure.
  3. Simple and Straightforward Buying: Provided you have the money, buying a property in Dubai is simple. The laws are clear in this regard. In fact, to make investing easier, the government grants a six-month property holder’s visa.
  1. Conducive Pro-Business Environment: The Dubai government is stable, and in the face of HH Sheikh Mohammed, it is being led forward by a progressive leader. With pro-business economic policies, dedicated infrastructures and free zones, Dubai real estate market makes up for a safe investment destination.
  2. Low Tax Regime: Dubai has established itself as a low tax regime. It doesn’t levy any tax on property, income or capital gains. Expats, however, might have to pay up taxes in their native countries. Corporate taxes are restricted mostly to foreign banks and oil companies. A whole host of economic incentives are on offer to promote further investment.
  3. The Aviation Factor: It is estimated that one-third of the world’s population lives within four-hour flight duration from Dubai. Dubai is connected via air to all major cities in the world. Dubai International Airport happens to be the world’s busiest airport by international passenger traffic. This accessibility has not only impacted its tourism, but also eased business significantly.
  4. Tourist Destination: Words of the glitz and glamour that the Dubai lifestyle offers, have travelled far and wide. With its iconic landmarks, ambitious projects and exotic attractions, it has been able to intrigue and attract the rich, famous and powerful figures of this world. Many call Dubai, “the Manhattan of the Middle East”. This and other attributes have had a positive impact on the Dubai real estate scene.
  1. World Expo 2020: This will be one of the most awaited event in the history of the region. During the event’s six-month duration, Dubai will be anticipating a crowd of no less than 25 million. Accordingly, the city has made some grand plans. Pundits have opined that as a direct result of this mega event, Dubai will see a growth of 35-50%.
    Read: A few cool tips  for serious real estate investors.
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In : Realty

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