When someone hears the word “Dubai”, tall skyscrapers, endless buildings in the site, and several impressive infrastructures come to one’s mind. It has highly-regarded commercial and residential spaces, first-class establishments, and reliable utilities for both clean water and power. There is no doubt that the city is one of the highly developed cities in the world.
For years, investments in Real Estate Dubai saw a lot of growth and development. Investors from different countries are welcomed, along with potential residents of the city. If you’re wondering if the time is still right for investing in real estate properties, the answer is a loud “yes”! And here are the five reasons why real estate investment is still strong in the City of Gold.
1. Dubai Apartments Have High ROI
The prices of apartments in Dubai have gone down by 10% in recent years, and it is expected to continue in the next couple of years. If Dubai apartments are getting cheaper, then why is it still a good time to invest in the market? The reason is, even if the properties itself are getting cheaper, the return on investment is still around 6-8%. It is still a great rate when it comes to real estate investments.
2. Government Supports the Initiative
The UAE Government fully backs the real estate market boom. There are new visa rules implemented to make buying properties in Dubai easier for potential investors. Long-term rents and long-term investments get the better part of the cake, as it means fewer taxes, fewer registration fees, and more bang for the buck. The 20% cap on real estate lending is also expected to stimulate economic growth in the city.
3. Arrival of Ex-pats
Ex-pats started arriving in Dubai in the last decade. There are reports which show that at least 40,000 Americans are in the UAE, and the majority of them are living in Dubai. The British population in the city is expected to be more than 240,000. Out of 7,000 Australian ex-pats, 3,000 are living in Dubai. Asian countries such as China, Japan, India, the Philippines, and Pakistan also share the population of ex-pats in Dubai.
4. Good Pace of Development
Development in Dubai is still on-going and is expected to be in full force for a couple more years. There is a plan called the Dubai Plan 2021. This blueprint was developed to realize the vision of “A Smart & Sustainable City”. It is focused on connecting key infrastructures that create mobility and ease of access wherever you go.
5. Incentives in Buying Instead Of Renting
The UAE government is giving incentives for people who will be buying properties instead of renting. Dubai’s population has more renters than property owners, which is something that the government wants to change. Buying a property is recommended for those who are planning to stay in Dubai for more than seven years.
These are the top reasons why you should invest in Dubai real estate market.