Let’s consider the fundamental reason for buying real estate anywhere in the world. Of all the products you can buy, the real estate sector is the most valuable and one of the most lucrative.
To understand if buying a property in Dubai is a good investment or not, I suggest you include the underlying reasons for buying a property anywhere in the world. Of all the products you can buy in cash, real estate’s are the most valuable and the most profitable. Do you know why? Because due to the growing population of the world, there are few lands to go round, and before someone else buys the portion you love, why not claim it for yourself?
Reasons to invest in Dubai’s real estate
Cleanliness: Dubai knows how to keep its streets and communities clean. For example, thousands of people use public transport on New Year’s Eve, and everyone is gathered in the center of Dubai to witness the most prominent firework display of the biggest fireworks of the world’s tallest building, also called Burj Khalifa. However, you will not find a single piece of woven paper in the morning on the streets.
Familiar neighborhood: Since the beginning of its development, Dubai is a family town. Every neighborhood, community, city in Dubai is well designed and planned. In each city, you will find shopping malls, public parks, entertainment venues, supermarkets, and cinemas nearby.
Transport: All major Dubai communities are well connected and covered by the public transport network. The leading suburban service is the Dubai Metro, a driverless metro/train service.
Necessary infrastructure: Dubai has excellent education, health, and leisure facilities. There is a vast network of medical centers, public and private hospitals, and the city also has the best schools and colleges, as well as the significant international universities that have set up their campuses.
Security: Dubai is, without a doubt, one of the safest cities in the world. The Dubai police are renowned for their ability to enforce law and order, and, due to strict regulations, Dubai is also far from external threats.
Buying a property as a holiday home
Vacation homes are a thriving real estate market in Dubai. The preferred destinations are Jumeirah Beach Residence, Palm Jumeirah, Dubai Marina, and Downtown Dubai (Burj Khalifa District). Buying a home in Dubai for holidays has many advantages:
No taxes on your property: Real estate investors do not pay government taxes on the property. Therefore, the rental of the property is not necessary to cover these expenses and may be available each time you visit Dubai.
Get a Resident Visa: One of the several benefits of investing in real estate in Dubai is that you can easily get a resident visa. The value of the property must be 1 million Dh or more to obtain a residence visa in the United Arab Emirates(UAE). If you are a regular visitor to Dubai, it is to your advantage to obtain a residence visa because it allows unlimited entry and exit from the UAE until the expiry date. The permit may be renewed upon expiry.
Sunny all year round: The climate of Dubai is sunny all year round with some rainy days. The sunny beaches of Dubai are generally within walking distance from your property and are an excellent source of entertainment.
Beautiful sceneries: Dubai is home to the world’s largest mall (Dubai Mall) and the tallest building (Burj Khalifa), as well as many other attractions. The city also has a vibrant nightlife.
Buy a property as an investment
This is the main reason why people buy a property in Dubai or elsewhere in the world. The purchase of a real estate in Dubai is a guarantee of the future. This is the best way to keep your funds and allow them to grow while enjoying the benefits of annual income if you choose to rent your property.
These are the factors that justify Dubai as an opportunity for real estate investments:
Dubai offers higher returns: none of the major cities (London, New York, Hong Kong, Singapore) are close to Dubai’s leasing services. The Global Property Guide reported that Hong Kong offers a return on investment of only 2.82%. Singapore has an average rental income of 2.83%, London ranks third with a rental income of 3.21%, and New York has an average rental income of 3.91%. Dubai is the number one with an average conservative rental income of 5.82%. In some areas of Dubai, rental income exceeds 10%.
Buildings in Dubai cost less: Compared to other world capitals, Dubai is much cheaper. According to a study by Global Property Guide, London costs $ 2,208 per square; Hong Kong is second at $ 2,119 per square, New York is third at $ 1,719 per square, followed by Singapore at $ 1,417 per square. The average price of a property in Dubai is only $ 468 per square foot, which is six times less than in London.
No property tax: The nonexistence of property tax is the main advantage of buying a property in Dubai. Suppose you have $ 200,000 to invest in real estate. If I had to buy a property in Hong Kong, the rate would be 15% on the purchase price, 13% in Singapore, 2.33% in London, and 2.21% in New York.
Is buying property in Dubai a good investment? All the points listed above indicate only one possible answer to this question, and the answer is a big YES!
Source: Ellington Properties, Dubai.