There is no doubt that the Dubai property market is the number one choice of investors. Whether it’s a short term or a long term investment. The investor will enjoy returns on the investment. Dubai has got ahead of almost every real estate market in recent years. And there are many Reasons to invest in Dubai Real Estate.
The most popular reason that attracts investors to real estate in Dubai is the infrastructure. In just last decade, there were more towers in Dubai than in any other country. Alongside it, the increasing business opportunities have drawn the attention of investors.
To make Dubai property one of the greatest places to invest. However, let’s not forget about the government policies. The UAE government has taken measures by simplifying the rules to attract investment.
The above mentioned reasons were just a quick recap. For more details, please read the article till the end. Underneath, we have mentioned key facts that Reasons to invest in Dubai Real Estate.
Reasons To Invest In Dubai Real Estate
Any country or city, that offers a higher return on investment will be the preferable choice for the investors. When we compare the Dubai property market with any market, we learn that ROI is a lot higher. The average annual ROI in other markets is 5%. On the other side, the average ROI in Dubai is between 7 to 8%. And if you invest in the correct property, the ROI may jump up to double digits in some cases.
In recent years, the average yearly return on Dubai properties has been around 5.19%. Which is higher than many property investments havens around the world. For example, the ROI on London property is 2.7%, New York (2.9%), and Hong Kong (2.4%).
Iconic Lifestyle and Infrastructure
Splendid lifestyles and infrastructure work as a driving force to attract a large number of investors. Even the government of the UAE says that Dubai’s infrastructure is a major strength to engage heavy investment. Dubai’s structure is based on multiple grounds. For instance, high rise buildings, shopping malls, amusement parks, and tourist spots. And Dubai is one of the locations where you will find all these things.
Investors prefer to invest at a place where they expect a high return when it comes to investment. And all the factors that we have mentioned above play a vital role in making Dubai real estate a desired investment opportunity.
Safe Location and Stable Economy
Without a doubt, Dubai is a secure city not just in the Middle East but also worldwide. In multiple studies and surveys, we have found that Dubai is ranked in the top 5 safest places in the world. In addition, the world economic forum has ranked Dubai 3rd safest country in the world. All these factors influence investors to invest in multiple projects in Dubai. For example, the luxurious options are to invest in luxury villas for sale in Dubai or Palm Jumeirah villas for sale.
Talking about the Dubai economy, it is one of the balanced and strong economies in the world. Even in the time of covid-19 where almost every market was at a downfall. The Dubai market was doing better compared to the other markets.
Tax Incentives and Exemptions
One of the major reasons that motivate foreigners to buy property in Dubai is the low tax rate. However, when comparing the tax rates to other property markets. We learn that the tax rates in other parts are higher. That means when an investor invests in the Dubai market. They can save lots of money by not paying the government. Recently, UAE government policies have tried to make the overall environment more feasible to attract more investment.
However, Dubai is not entirely a tax free nation. Still, you need to pay a minimum charge or fee when you buy house Dubai. The property owners need to pay 5% of the average rental value in their area or 4% in the case of property transfers. For more details on different taxes in Dubai, you may contact any top real estate companies in Dubai.
The UAE government has announced investors to acquire a residency permit. So if you are an investor, you can get a property investor visa. That allows obtaining an emirates ID and UAE Driving License and sponsors the family. A few years back, investors had to buy a land for sale in Dubai above AED 1 million to apply for a property investor visa is here.
However, the policy change in recent and the minimum requirement was decreased to AED 750,000. The decision was intended to raise foreign direct investments. The time duration of the visa starts from 3 years up to 10-year based on how big the investment is. As an investor, you shouldn’t ditch the opportunity. As Dubai has the highest standard of living globally.
Easy Investment Process
The overall investment process is quite effortless compared to any other country. However, things can still be challenging if you are buy home in Dubai for the first time. But thanks to real estate agents in Dubai that can work for you for a small fee. In addition, the real estate agents will assist and provide you with helpful advice. Whether it’s signing a Memorandum of Understanding or transferring the ownership documents. You will need the help of a real estate company.
How Do Banks And Lending Institutions Attract Investors?
Banks and lending institutions also played an important role in engaging investors to invest in Dubai real estate. Banks set lower interest rates on loans and ample time for the loan payback. Moreover, investors who borrow money from banks and lending institutions have time from 50 to 100 years to pay the loan.
A Shopping Hub
Dubai is a hub of brands and stores. Almost every brand has its outlet in different shopping malls and markets. Dubai has about 65 malls in a city of just over 3 million people. These malls attract people from all over the world. With 10 malls under construction, that will take the total number to 75 malls.
The increasing number of malls creates more business opportunities that need investment to kickoff. Investors are always looking to invest at a place with a quick return on investment. And Dubai is one of the places where investors can get a return more than their expectations.
Dubai is a place for tourist who wants to spend vacations in a safe place. According to reports, Dubai is the fourth most visited tourist destination. Dubai attracts an estimated 16 million international visitors. But in making Dubai the greatest tourist spot, both government and investors played a vital role.
Government makes the visa policy easier, so anyone can apply for a visa.
There are several facts that make Dubai the most popular travel destination. For example, Burj Khalifa, Dubai Opera, Alserkal Avenue, and Miracle Garden are renowned tourist spots in Dubai.
Talking about the investors, they have invested a lot of money to bring the tourism sector to the next level. However, Dubai still has to offer a lot more, and it is the right time to invest in the Dubai real estate market.
World Class Festivals And Sporting Events
In recent years, Dubai has hosted some top and international events such as the Premier golfing championship, ICC Men’s T20 World Cup, and Dubai Tennis Championship. In addition, the increasing number of sporting events has attracted millions of investors to invest in Dubai grounds and sporting events.
In this article, we have highlighted Reasons to invest in Dubai real estate. All these reasons have engaged investors from all around the world to invest in the Dubai property market. However, not all investors receive returns according to their expectations. Some investors have also lost their investment. And some have received more than expected. Since the Dubai investment market is stable compared to any other market. However, you still cannot invest without the help of any top real estate companies in Dubai. Time homes real estate has assisted investors and provided them with the best suggestion. So whether you are looking to buy a home in Dubai or apartments for rent al furjan. Get in touch with the real estate brokers working with Time homes real estate.