Why invest in Dubai real estate? – John Preston – Medium
Why invest in Dubai real estate – John Preston –


High quality of life, low crime rate, great roads, huge number of retail venues — here are just some of the many reasons why people move to Dubai. Furthermore, the emirate is considered one of the world’s best investment destinations, and its real estate market offers attractive options in various segments from residential property to hotel rooms and serviced apartments.

Here are 5 reasons to consider investing in Dubai property right now.

1. Timely investment

For several years, Dubai real estate market has been experiencing price adjustment. However, right now the market shows the signs of recovery.

It means that right now you can invest in Dubai real estate for the best price possible while the market promises to rise in the years to come guaranteeing good capital growth.

2. Low taxes

The UAE has a reputation of a tax heaven, and despite implementing VAT recently, the country’s tax system is still one of the world’s most attractive.

Here you don’t have to pay income tax from renting out residential property nor real estate and capital gain tax. For comparison, in Hong Kong, you have to pay up to 15% as property tax annually.

3. High returns on investment

Dubai property market is an emerging one. While established destinations such as London or New York offer more safety, they lack profit earning capacity. As a rule, investors buy real estate here to protect their money rather than to earn more.

If you want profit, you should invest in emerging markets, and Dubai’s one of the places you need. The average returns on investment in the city equals to 7% per annum. In certain areas such as Jumeirah Village Circle it can reach up to 8% or even 9%. In London, this indicator rarely exceeds 5%.

Furthermore, the country’s currency (dirham) is pegged to US dollar which is an important factor to consider when investing in foreign assets.

4. High demand

High rental yields come from high demand for rental property due to a great number of expats living in the city. Natives constitute merely 20% of the UAE’s total population. And since most foreigners prefer renting rather than buying property, apartment owners can always find tenants.

Same goes for other types of Dubai property including retail and hotel real estate. Being a popular international resort, Dubai attracts millions of visitors each year, which results in advanced retail and hospitality industry.

5. Expo 2020

At the end of 2020, the emirate will host the region’s very first Expo. The event’s organizers expect about 25 million of people to visit the city during just six months. As a result, it’ll stimulate growth in various sectors including real estate.

Right now the emirate’s government is heavily investing the city’s infrastructure and the new district where the Expo will take place.

All these factors make investing in Dubai property market a wise decision. The UAE remains one of the safest countries of the region and has high growth potential.



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