Here’s Why You Should Invest In Dubai’s Real Estate Market
Thinking to invest in Dubai, but before investing, do you know the benefits of investing in Dubai Real Estate.
No matter where you are in the world, understanding how to earn your money to produce long-term results can be challenging. But if you are investing in real estate, Dubai offers some of the best and most exciting opportunities for money to buy. Being a tax-free city makes it much easier for people around the world to come to Dubai and build an impressive and highly profitable real estate portfolio. Foreign investors are increasingly attracted to this Middle Eastern gem, thanks to the various free zones specially created to boost the local economy. So, if you are looking for a grand element, Dubai’s luxury properties are second to none. And investing here is a wise move for other reasons as well. With so much happening locally, people flock from every corner of the world and marvel at some of the most breathtaking views, leisure attractions, and shopping centers you’ve ever seen. At this level of tourism, you have no choice but to make money.
Dubai is a city with a huge influx of people. The tourism market single-handedly provides 17 million people per annum. Even in the middle of the pandemic in 2020, the city received 5.5 million people. The local residential population of Dubai comes from all walks of life, including expatriate foreigners, representatives of business & industry, highly qualified laborers, migrants, etc. Every year, 60–65 thousand new real estate structures are constructed, and developers report an increase in profits of 250 percent. One may appreciate that the Emirate’s market has plenty to offer potential investors given the economy’s annual growth rate of 3–4%. A healthy real estate market is crucial for any nation because it draws in fresh capital and shapes communities that have been thoughtfully planned. But the industry may produce fake progress if there is no transparency. The political leadership in Dubai recognizes the value of a transparent real estate market, which is why it is using cutting-edge digital solutions to enable investors to make wise judgments. Today Dubai provides a variety of real estate investment choices, including both short-term & long-term investments right from off-plan properties to ready-to-move-in.
We have curated a special list with the main reasons as to Why and How Dubai’s real estate market is an investor and homeowners paradise.
NO PROPERTY TAXES
Dubai is the finest place to invest because there are no capital gains or property taxes there. Once a property has been purchased, the owner simply must pay the one-time real estate transaction charge (4% of the property value) also called as the Dubai Land Department fee, which in some cases, depending on the offers during and after the launch, are partially or entirely waived off.
OUTSTANDING FINANCIAL REWARDS/ FLEXIBLE PAYMENT PLANS
In the world, Dubai’s economy ranks third in terms of performance. The administration is committed to enhancing the business climate and fostering long-term growth to make the Emirate competitive on a global scale. While the interest rate is 4.5 percent for residents and 5.5 percent for non-residents, those who invest in real estate in Dubai benefit from customizable payment plans that are catered to their financial situation. Dubai is presenting unmatched financial security with an unrestricted remittance limit and a very stable currency, fixed to the dollar. The demand for a new home is always on the rise as the Emirate’s population grows. Dubai expands yearly and the market matures to include notable projects from reputable, long-established developers.
HIGH RETURN ON INVESTMENT
According to recent research by JLL titled “World Cities: Mapping the Pathways to Success,” Dubai has just risen to the top of the list of “Hybrid” Cities as the best place to invest in real estate. According to the findings of the study, Dubai is the perfect example of a “Hybrid” city. These cities are often of moderate size and engage in competition within niche sectors, while also benefiting from access to huge domestic markets. The location of Dubai on the map and the city’s undeniable prominence as a luxury destination are two indicators that demonstrate the longevity of Dubai’s leading position in the global real estate market. Other national and regional candidates do not compare favorably to Dubai in terms of the city’s overall livability, which places it in the same category as the world’s “developing cities” and “new world cities.” Even though the property market appears to be slowing down, buy-to-let investors in Dubai have the potential to obtain better rental returns than in other mature property markets. Many people believe that the real estate market in Dubai is now going through a “correction” process that will result in a more reliable and consistent supply of properties of a high standard.
Due to the unwavering faith that investors have in Dubai and the city’s optimistic plans for infrastructure development, the real estate market in Dubai is poised to make a strong comeback at the beginning of 2021. The administration of Dubai is completely convinced that one of the emirate’s most significant advantages is the remarkable level of development seen throughout the city. Dubai is one of those places that offers a high level of living together with great infrastructure and continues to improve upon both aspects of city life.
The Burj Khalifa in Dubai is one of the world’s largest, tallest, and swankiest skyscrapers, and Palm Jumeirah, the man-made island in Dubai is one of the most beautiful places on the planet. Before the epidemic that was caused by Covid-19 and that led to the shutdown, Dubai Airport currently is one of the busiest airports in the world in terms of the number of international passengers it served. When it comes to ports, the Jebel Ali Port is the largest port that was created by humans anywhere in the world. These arguments should be sufficient for any astute investor to see why they should consider investing in Dubai.
10-YEAR-GOLDEN VISA FOR REAL ESTATE INVESTORS
It was stated earlier this year that those who invest in Dubai real estate and professionals in certain specialized professions will be eligible for residency permits valid for a period of ten years. It goes without saying that this will have a significant and positive impact on the economy of Dubai. The fact that Dubai is offering such a long-term residence option demonstrates the city’s level of trust in its investors and highlights the degree to which an investment in the city is eventually protected. It was also declared that companies operating in the UAE would no longer be required to have a majority shareholder of local nationality. This change would surely result in an increase in the number of indigenous firms and entrepreneurial endeavors.
CITY OF INNOVATION
Dubai is always focused on the future and exploring new methods to implement aspects of the future into the here and now. New freeways are being built to keep the city better linked, new communities are being established to promote a more sustainable living experience for people, and Dubai strives to make every element of life in the city hassle-free with its continuous “smart city” and “happiness” efforts. There are also architectural advancements, such as the Dubai Creek Tower, which will ultimately dwarf the Burj Khalifa, and the Dubai Frame, which is the 150-meter tall ‘picture frame’ tower that forms a visual link between the older and newer areas of the city.
THE BUSINESS HUB OF THE MIDDLE EAST
The Middle East, the Indian Subcontinent, and Central Asia can all be accessed through Dubai, making it a genuine nexus of international trade and a gateway to these regions. Dubai, which is home to one-third of the top 500 companies listed in Fortune magazine, draws business professionals from all over the world. In addition, Dubai should be included on the list of the Top 20 Cities in the World that the Global Power Index 2020 compiles (GPCI). The Emirate is delivering a great legal framework for businesses to flourish and a free enterprise system, and it is rightfully gaining pace as a result of these provisions. The most influential people in business see Dubai as an undeveloped market with enormous potential for expansion.
We are all aware that Dubai is a multicultural city where individuals from over 200 different nations dwell in the hopes of expanding their professions and enterprises. This is something that we all know. Because of the city’s consistently rising population, there is an ever-increasing and frenetic demand for residential and commercial real estate in Dubai. As a result, the city is seeing an increase in the number of chances available for financial investment. In fact, Dubai’s population, which is presently estimated to be approximately 3.5 million, is expected to nearly double in 20 years, which will coincide with the completion of Dubai’s 2040 Urban Master Plan. Despite the setback caused by covid-19, which led to an 8.4 percent population loss, the city’s population nonetheless managed to bounce back quickly, and it is presently 100,000 greater than it was in January 2020. This indicates that the city has been successful in regaining its population.
It should come as no surprise that a large number of investors are moving their businesses to Dubai given the city’s rapidly expanding population as a result of the yearly relocation of thousands of expatriates from all over the world.
FAST PACED ECONOMY
Investing in real estate in Dubai is highly advantageous for several reasons, one of the most important of which, is the city’s robust economic growth. Dubai, located in the strategic halfway between East and West, acts as a handy significant regional center for enterprises that wish to develop in either direction or both directions.
It is attracting a greater number of foreign investors than ever before because of its highly diversified and stable economy, which derives money from a variety of sources, including tourism and trade. Since then, there has been a significant improvement across the board in Dubai’s economy, which has led to extraordinary development in terms of both capital and GDP. This was done so that the government could establish Dubai as the commercial and financial hub of the MENA region. Without a shadow of a doubt, Dubai has emerged as the most important commercial center in the Middle East because of the proliferation of free trade zones and the upcoming World Expo 2020.
SAFETY AND SECURITY
A extremely low crime rate and an effective judicial system contribute to Dubai’s reputation as one of the safest places in which people can reside anywhere in the globe. People from all walks of life can visit the city without experiencing any difficulties or concerns of any kind. The United Arab Emirates (UAE) has remained a shelter for people who live there, even though political unrest is raging in many areas of the world and throughout the region.
HIGH STANDARD OF LIVING
Due to its high standard of living and world-class infrastructure, Dubai is often regarded as one of the top places in the world to make financial investments. It is not hard to see why Dubai is considered a safe haven for investors; the city is home to world-class dining establishments, a lavish lifestyle, stunning beaches, connectivity, and cutting-edge entertainment and recreational facilities. When it comes to Dubai’s real estate market, several developers have a rising inventory, delivering gorgeous residences, and expanding in up-and-coming locations that are highly coveted. In addition to this, one of its primary advantages is that, in comparison to other large cities, it is very inexpensive. This implies that there is something available to everyone, regardless of their financial situation.
People from all over the world are drawn to Dubai because it has developed over the years into a global city that is filled to the brim with chances for investment. Because Dubai is geared towards outstanding growth and development because of its forward-thinking design, amazing infrastructure, and sustainable way of life, you may anticipate that your investment will do well there. Considering all the mentioned points, those who are considering investing in real estate in Dubai may rest certain that they are moving in the right direction given that the market is showing signs of improvement and is firmly rebounding. In addition, the prices of Dubai real estate have reached a new equilibrium, the market has developed to its full potential, and the beginning of a new real estate cycle all contribute to the fact that now is an excellent moment to invest in real estate in Dubai.