The real estate sector in Dubai is booming, earning it ‘the fastest growing city’ status. But why does everyone love to invest in Dubai real estate? Well, there are several factors contributing to this major growth.
Unlike other middle-eastern countries, Dubai’s economy is not solely dependent on oil. Tourism is big in Dubai and is currently a universal connector to the world. Many people perceive that Dubai is only a tourist destination, but as much as this is true, it is more than that.
It is the place to be; in fact, many people are opting to raise their kids in Dubai because it is abundant and relaxed. This offers endless opportunities for investors looking to invest in Dubai Real estate. If you have never thought about investing in Dubai’s real estate, then here is why you should consider;
6 Reasons Why Everyone Love to Invest in Dubai Real Estate
No matter how the real estate market or the economy turns, Dubai has maintained its position as the No.1 choice for investors from all around the world. But what makes this city such an attractive prospect? Here are 6 reasons to know:
Higher rental yields
For investors, gaining maximum profits is the only goal, and Dubai offers just that. There are several attractive and profitable offers in the real estate sector in Dubai. Property interest rates are reasonably low compared to other countries. Moreover, most residents in Dubai prefer renting a house to mortgages.
This means more housing units are needed each time to meet the ever-increasing influx of people to Dubai. A study conducted by Global Property Guide, a real estate investment consultancy, revealed that average yearly property returns are 5.19%. This is significantly high compared to other global giants like new York (2.9%) and London (2.7%)
Dubai has a 24-hour booming economy
Dubai is rated among the top 5 most economic-robust cities in the world. Dubai’s oil and non-oil industries generate enough income, which means more job opportunities and thus more housing units. This intertwined economy has seen a massive influx of foreigners into the City in search of job and investment opportunities.
It is unthinkable how Dubai has properly accommodated an increase of 86% population in a decade. The massive influx of people to Dubai shows how healthy the economy is, and it also directly translated to increasing investment opportunities, especially in the transport, real estate, and service industry.
Dubai is a global connector
The Dubai International Airport is one of the busiest airports in the world, with an estimated 8.2 million passengers yearly. Currently, it is hard to think of an airline that doesn’t pass through Dubai.
This is because thousands of professionals, students, and businessmen visit the country daily. Several companies have also set their headquarters in Dubai, and the Dubai Expo 2020 event placed the City on the map.
It was a show of economic might and endless investment opportunities that Dubai offers. It means that housing has always been and will always be in high demand in Dubai.
Low property prices per square meter
Dubai’s property prices are significantly lower than other cities, making it a great place to invest in real estate. Apart from the Low property prices per square meter, the UAEs government enacted a zero property tax policy which makes this sector even more enticing and profitable.
In general, houses in Dubai are far much cheaper and, therefore, more practical for Dubai residents to buy housing units than living on rentals. The International Tax Competitiveness Index (ITCI) ranked the zero tax policy on property as one of the biggest contributors to the increasing number of international real estate investors in Dubai.
Buying a property in Dubai is more than just an investment. It comes with several other benefits. When a foreigner becomes a property owner in Dubai, the government rewards them with a residency visa. However, this feature is only available for property worth over 1,000,000+ Dirhams with zero mortgage.
Developing or off-plan properties are not entitled to this reward. Investors can apply for UAE citizenship once they meet all the requirements. Special schemes like golden visas are available for investors who spend a fortune in the Dubai real estate sector.
Progressive housing market
The property market everywhere in the world goes through several highs and lows due to the many economic drivers. In many countries, housing units decline rapidly, but this is not the case with the UAE’s property market.
The surge of people to Dubai has ensured a constant need for more housing units. The government is planning to build more dwellings, giving investors more options. This explains the never-ending love of the real estate sector in Dubai.
In the past, foreigners were not allowed to buy homes anywhere in Dubai, which is why the real estate market was static. However, property rules and regulations were changed to accommodate measures like; proper escrow regulations, rental increase calculator, rental cap, and a rental dispute settlement tribunal.
A set of standards must be followed to acquire or sell property, which brought about transparency and eliminated conman ship. Moreover, the low-interest rates and good government policies ensure that all necessary documents are easily processed, making investing in Dubai Real Estate easy for investors from all over the world.