The profitability of investment all over the world differs; in some countries, oil, and gas reek more ROI than stocks; while in others, crypto is the current all-time money deal. But, there is one investment that is guaranteed to churn in profits all over the world, and that is Real Estate. The reasons for this are not farfetched; for example, 70% of the world is covered by water and over 8 billion people (and counting) scuttle to occupy the remaining 30%! When such real estate is now positioned in a country perceived as the happiness –center slash relaxation-hub of the planet, then you can imagine the prospects.
According to Elizabeth MacBride, cities are renowned for representing moments in time. Dubai however represents three moments in time – It is a major player in the last gap of the oil rise culture, it is a free economy driven by business or economic acceleration and it is a viable market in the shift of world investments from developed to emerging markets.
There is no gainsaying that real estate is one of the juiciest investment types and a great venture but when it is in Dubai, it is an even greater option. You probably already have a nudge about this and that is why you are here reading this article. So sit tight as we take you through the top 10 reasons to buy real estate in Dubai.
Let’s dive right in!
1 – High ROI
Real estate in Dubai offers one of the highest returns on investment all over the world. According to Ax Capital, a leading real estate company in Dubai, rental yields over properties in Dubai run at a minimum of 5% – 6% yearly yield. While in sales, the value of properties is on a consistent acceleration. There are factors that contribute to this increasing nature of real estate (some of which will be discussed below). More so, when compared to other leading business locations/ countries, the cost of purchasing real estate in Dubai is relatively lesser. Making it a viable option.
2 – Free Trade
The UAE operates a policy that is big on free trade in order to attract foreign investments. As regards real estate, the tax regulations are minimal. For example, Value Added Tax is excluded on residential properties and there is no annual property tax in Dubai. Likewise, the country maintains an open policy such that foreign ownership of firms is overly allowed in some areas and in others, under mild regulations; and work-visa requirements are relaxed in some areas of Dubai. However, here’s the most relevant part of the free-trade policy for real estate investors – residency visas are often granted to homeowners and real estate investors. For properties above AED 1, 000, 000, the investor is entitled to a 2-year residency, 5-year residency visa for properties worth AED 5, 000, 000 and 10 years for properties worth AED 10, 000, 000, etc.So purchasing real estate is a gateway to obtaining a residency visa and easy visitation anytime.
3 – State of the Art Infrastructure
Dubai is the world capital for amazing infrastructure and is known for grandeur luxury real estate. The UAE is light years ahead in infrastructural technology, with proposed underwater subways, moving/ movable buildings, and sky-high recreational centers, etc. It is home to many world tallest skyscrapers and has state-of-the-art city plans (The Palm Jumeirah for example), and exquisite hotels. It is a great investment to purchase property in such bubbling and happening areas.
4 – Growing Population of Immigrants
Dubai is such an attractive place for the world that at least 70% of its residents are immigrants. Forbes says the non-natives outnumber the natives 8 to 1 in Dubai. According to official publications, the population of Dubai is currently at 3, 456, 384 with only a 0.5% unemployment rate. Likewise, the public relations and projections of Dubai are positive thereby attracting foreigners for work and investment. With a growing population of immigrants, comes the growing demand for real estate, resulting in higher value in the industry.
5 – Trade and Tourism center
Dubai is remarkable for being a trade and tourism center. You can find a spot for almost anything. Museums, trade fairs, tours to landmarks in the city, etc. Trade and tourism reportedly amount to up to 28% of the country’s GDP. So, you should invest in real estate in Dubai because when people visit to trade or tour, they will invariably patronize real estate, be it short or long term.
6 – Gateway City
Dubai is a gateway city to Asia, the Middle East, Africa, and even Iran, all of which have budding and growing economies. In 2015, her airport was the world’s busiest and in 2017, 85 million persons were said to have traveled through the Dubai international airport. Essentially, people who do not intend to come to Dubai may pass by on their way to other business hubs/ nations. While in transit, some will patronize real estate and others may fall in love with the city.
7 – In the Spotlight of Sports
This is another major pacesetter. Due to the availability of world-class sports centers, Dubai hosts numerous sports events year in, year out. Examples include football – the Dubai world cup, Rugby, Tennis, and horse races, etc.
8 – A step ahead in technology
Many properties in Downtown Dubai are occupied by tech start-ups, budding companies, and business centers. About eight years ago these companies were nowhere to be found in Dubai until the country began to operate policies that attracted and retain tech experts. Additionally, it is cheaper to ship goods out of Dubai through her busy airport, a feature that encourages start-up marketers and businessmen.
9 – A diverse market
The UAE has managed to diversify its income well and this has led to a more stable and friendly market. The economy is not solely dependent on oil. Even with the decline in the value of oil and diversification into other sources of energy (such as renewable energy), Dubai is positioned to thrive because of its alternative economic sources. Dubai generates 28% of her GDP from tourism, 27% from business and finance, and 14% from transportation, whilst the remaining 31% is divided among oil and other revenue sources. What this means is that the country cannot suffer severely from the fall of oil unlike other Middle East countries and African countries.
10 – Happiness center
Dubai is one of the world’s favorite places for shopping, vacations, and enjoyment. When one can afford it, it is almost impossible not to dream of a vacation on the beautiful dessert with its artificial lakes, luxurious lifestyle, and state-of-the-art locations.
To sum up
Based on the above, it is safe to conclude that an investment in real estate in Dubai is a fireproof profitability venture, especially when done correctly. A Middle East country booming with oil, yet not dependent on oil; an economy that encourages and attracts investors and tourists alike, while also housing the world’s top must-see buildings and infrastructures! If you can afford it, then investing in real estate in Dubai should be on your investment to-do list.
