Seemingly overnight Dubai has emerged as a world-class city in the middle of the desert. Being located at extremely important geolocation, Dubai has attracted the attention of some of the most important people in the world of investors. Like all the other sectors, foreign investors are showing a great amount of interest in investing in the property of Dubai.
Here are the key reasons why increasing numbers of foreign investors are choosing to invest in Dubai properties.
Excellent Track Record of Property
Because of the global economic recession, property rates have fallen in many places around the globe which have made many investors think twice before investing their hard-earned money in property. On the other hand, the property market of Dubai was maintained stable value of this time. This has been a catalyst to attract foreign investors to invest in the property of Dubai.
Comparatively Low Property Prices
Meena Bazar Dubai is an example of efforts of the UAE government to stabilize the property market by lowering real estate prices in 2014. While it sent shock waves through the community of investors who had already invested in property, the decision helped to secure stability in the property market in the longer run. The lowering of prices meant that new investors could buy property at comparatively cheaper rates which brought more foreign investors.
Good Returns on Investment in Real Estate
Reports consistently show that real estate investment in Dubai has yielded good returns for investors over the last few years. And the primary reason behind these profits is that many of the buildings is the high occupancy rates across industrial, commercial and residential. Dubai’s strong international market means that all sectors have a high need for real estate, which makes the business of property a profitable one in this part of the world. Furthermore, the real estate business yields 8 to 10% return on investment which makes it even more favorable for foreign investors. Dubai is the eighteenth most economical city with regards to prime land costs.
Dubai Expo 2020
The international Dubai Expo will be held in Dubai in Oct 2020. It is estimated that some 25 million people from about 180 counties will visit Dubai to attend the expo, which will run for six months. Obviously, all these visitors need to be accommodated somewhere. Investors are very much aware of this fact and are trying to get hold of the places which are near the location of the expo so that maximum number of visitors are accommodated in rental properties. It is estimated that investors will see very favorable returns thanks to the Dubai Expo, as will the city in general.
Booming Tourism Industry and Low Crime Rate
People prefer to spend their vacations in a peaceful and secure environment. Dubai can offer both of these and is becoming known for this. The combination of the booming tourism industry and a politically stable environment with a low crime rate makes Dubai one of the currently trending destinations for tourism. With so many tourists coming to Dubai every year, this generates yet more opportunities for property investors: not only in property for hotels but also retail, hospitality, entertainment and other businesses associated with tourism.
Transparency and Political Stability
It is an open secret that there is an enormous amount of political stability and a high level of transparency in Dubai. This makes Dubai one of the most sought after locations for foreign real estate investors. Political stability limits fluctuations in the economy which in turn helps the confidence level of investors and results in a stable market. Similarly, a higher level of transparency from good governance in turn provides simpler and more straightforward processes for foreign investors.
The population of Dubai is growing at a healthy annual rate. According to the Dubai statistic center, its population was estimated to be two million in 2016, and is estimated that if the current trends continue, the population of Dubai will stand at 5.2 million by 2030. Obviously, the increase in population means an increased need for accommodation which in turn means that now is the ideal time to make an investment in the real estate business.
No Property Tax
Purchasing of residential or commercial real estate entities in Dubai is tax-free, which puts it ahead of many other markets from an investor’s point of view. Compared to buying a property in many other countries, this tax break can represent a significant cost saving. The exemption from taxes makes Dubai extremely appealing to foreign investors.
An excellent track record of property, low property price, the high return rate on investment, low crime, Dubai expo 2020, excellent infrastructure, booming tourism industry, lack of property tax, and entertainment are just some of the reasons why so many foreign investors are looking to Dubai real estate. Doubtless the same reasons will see this interest continue to grow in coming years.
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