Dubai’s real estate market is perfectly positioned to execute highly profitable property deals and people shying away from the realty options here are actually keeping themselves away from the investment of a lifetime.
There a host of reasons why you should be investing in Dubai’s real estate sector right now.
To start with, Dubai is a tax-free city, meaning you don’t have to pay any income or capital gain tax. This makes it extremely attractive for people from all around the world to come and work in Dubai, which in turn increases demand for real estate properties.
The price softening this year is another reason and buyers have jumped at the opportunity. The softening has also brought along many tenants on to the buying bandwagon as property developers in Dubai have been offering flexible payment plans to boost sales. Some developers are even offering payment plans resembling rent-to-own schemes and others are selling units with monthly instalments of 1% of the property price.
Interestingly, it’s not just the property prices that are attractive. According to UAE real estate web portal Bayut.com, Dubai’s rental yields are averaging around 7 percent, which is extremely attractive when compared with cities such as Hong Kong (2% to 3%) and London (3% to 4%). The portal noted that in some parts of the emirate, the yield went as high as 10 percent in certain apartment categories.
The most popular localities in terms of renting were Dubai Marina, Jumeirah Lake Towers (JLT), Downtown Dubai, Palm Jumeirah and Dubai Sports City and buyers can expect ample tenants all year round should they opt to buy in these localities.
Foreign investors are attracted to Dubai due to the various free zones and the city’s strategic trading location on the world map. The economy continues to grow, leading to more work opportunities that attract new talent and helps the realty sector with a continued demand for accommodation.
The emirate is also a tourism haven and the shopping capital of the word. Dubai is a popular travel destination with its fabulous shopping malls, five-star hotels, beautiful beaches and numerous attractions and is quite accessible through direct flights from all major cities in the world. These are the very reasons Dubai hosted over 14 million visitors in 2015, and aims taking the number up to 20 million a year in the next few years.
With tourist numbers rising, many landlord now have the luxury to put properties up for short-term leases to visitors staying for longer periods. Once you have the requisite permissions in place, the short-term leasing is a profitable undertaking, allowing landlords the flexibility of changing tenants without hassle, as well as generally higher rental income that is associated with the shorter contracts.
Dubai is also extremely safe for people moving in with families. The emirate has a crime rate of close to nil, making it a perfect place for average and high net-worth individuals.
Dubai’s state-of-the-art infrastructure, its efforts to become a smart-city and steps towards ensuring a self-sustaining lifestyle would make it a true haven for investors around the globe. It’s a great city with a greater promise, taking the leap of faith is what really matters.
