There are many investment opportunities in Dubai. Also, from the last few years, there has been a tremendous rise in the number of investments made. While there are many reasons to invest in Dubai, this thought occurs to all – Why Invest in Dubai? In this article, we look at the reasons why investors prefer Dubai for real estate investments.
Dubai is a truly 21st century city. It’s a place where east meets west, where tourism meets commerce. One-third of the world’s population lives just a four-hour flight away. 88.7% of those living and working in Dubai hail from overseas. Enterprise zones in DIFC and Downtown make the city the premier business hub in the Middle East. Iconic landmarks, world-class attractions, year-round sunshine and no taxes – Dubai has a draw few cities can match. And this is what continues to fuel investment in this part of the Gulf.
Think property, think Dubai. It’s a city where investors have enjoyed some of the highest levels of capital growth the global property market has ever seen. Today, Dubai’s real estate market has matured, one that’s in-line with those of other global cities such as New York and London. No longer is it based on speculation. Dubai’s property market is now regulated and sustainable, carefully underpinned by the three key investment fundamentals: supply, demand and location.
World Expo 2020 will bring 25 million people to the emirate and create 277,000 new jobs. The first time the Expo will be hosted in the Middle East, Dubai’s property market will naturally feel the impact of the event. Hosting the Expo has been found to have a profound effect on the capital growth of local real estate. Experts predict Dubai will see growth in the region of 35-50% as a direct result of Expo 2020. It means that, for investors, the time to buy in Dubai is now.
Benefits of investing in Dubai
- It is strategically located between east and west. It helps connect Middle-East, Asia, Africa, and Europe.
- World Class Infrastructure – Dubai stands proudly among the list of top cities that provide state of the art infrastructure to its residents.
- A wide range of business premises ranging from the mainland to free zones
- A constitutional monarchy since 1971 – UAE is the third most peaceful country in the Middle East and North Africa (MENA) region.
- Crime levels in Dubai are very low. The government pegs a lot of importance on good living conditions and quality of life.
- According to Doingbusiness.org. UAE ranks first in the region for the ease of doing business. This is based on parameters like starting a business, dealing with permits, registration of property, etc.
- Dubai has favourable business regulations to encourage foreign investments.
- It is a tax-free city. Hence, people from around the world come to work or look for investment opportunities in Dubai.
Investment opportunities in Dubai
While we have seen the benefits of investing in Dubai, let’s now look at the advantages of investing in Dubai property:
- As compared to the other global cities, property process in Dubai are still inexpensive. This means, there is a tremendous scope for growth. Every year, the demand for properties is increasing at a rapid pace. This makes it a good investment option.
- Real estate investment is known to be an inflation-beating investment. If you buy property with the support of a loan and find it difficult to repay it, you can lease the property and allow the rent to take care of the same. This way, your debt gets repaid while the property appreciates in value. Being a global city and a trading hub along with all the benefits mentioned above, properties are always in demand in Dubai and finding a tenant is not a difficult task.
- Taking a cue from the point above, rental income can be a good source of secondary income for you. With ever-rising costs, a secondary income is needed by most people. While the rent can add to your income, property appreciation with time secures your future.
- Like the stock market, the real estate market is volatile too. However, it almost bounces back. You will never face a situation where the value of your property suddenly falls to zero. Hence, investing in real estate insures you against the possibility of a complete loss of capital. In Dubai, as the government encourages business and trade, property values are expected to invariably rise.
- As a real estate investor, you have more control over your investments as compared to other investment options. This is simply because the asset is tangible. Also, diversification in real estate just means buying different types of property.
- Investment opportunities in Dubai are open to anyone from anywhere in the world. By investing in real estate, you can benefit from the growing economy of Dubai too.
- Banks in Dubai are easing the norms for home loans and boosting the demand for properties. And an increased demand leads to an increase in supply. This means better deals and more options for buyers.
- For unforeseeable reasons, if you need to take a loan later in life, a real estate property can work as a great collateral. It ensures that you get loans quickly at a good rate. Banks in Dubai offer these loans at lowest possible rates.
Hence, investing in Dubai property has more benefits than other investment options. Ensure that you think about your financial goals and do your research well before investing.
In the global world that we live today, there are plenty of opportunities to participate in the growth of a country/region by investing in it. The investment opportunities in Dubai are one such chance. You too can be a part of this fast-growing economy, just by purchasing a property. With the World Expo 2020 slated to be hosted in Dubai, 25 million people are expected to come to the UAE creating around 300,000 new jobs. The real estate market of Dubai is bound to experience a huge surge during that period. So, if you are contemplating investing in real estate in Dubai, the time is now!