A shining star in the international property scene for some time, Dubai has definitely become one of the most sought-after global locations for property investors. In under 20 years – since its humble real estate beginnings in 1997 to the opening up of premium property to international buyers in 2002 – this former desert city has transformed into a hi-tech megalopolis.
How does the Dubai property market currently look?
Just like in any emerging market, much speculation has been made about the current and projected property market conditions in the UAE. Experts have been saying that there is no time like the present to invest in the region than in previous years, mainly due to the following reasons:
- The steady growth and maturation of the market
- The increased standards in place to preserve the interests of international investors
- The economic prospects and infrastructure developments associated with the upcoming Expo 2020 Dubai
- The combination of all these factors and more that make the Dubai property market looking very profitable.
The Dubai property market is increasingly maturing to become more end-user oriented, which supports demand. In fact, the UAE is ranked first in the Arab world and 15th globally, as one of the best destinations for people exploring avenues for residential real estate outside of their home country.
Here are nine convincing rationalizations for investors to consider who are contemplating on investing in Dubai real estate.
1. No annual property taxes
First and foremost, investing in the Dubai commercial and residential real estate market is entirely tax-free. Even when you purchase one of the most coveted luxury villas in Dubai, you will not have to pay taxes. In fact, once the property purchase is complete, owners will not be required to pay additional taxes in the future. Now, that is one good reason to invest!
2. Dubai’s population is booming
One of the fascinating things about property development in Dubai is that it is estimated to increase in accordance with its population growth each year. Luckily for investors, the Dubai Statistics Centre reveals that Dubai’s population in January 2016 was 2.4 million and is expected to reach 5.2 million by 2030.
3. High returns on investment
Continuing with #2, as the city’s population increases each year, the prices in the Dubai real estate market are also maturing. Savvy investors know that a burgeoning demographic wisely purchasing property is also supplying a boost in rent demand.
4. Low crime rates
The emirate of Dubai (just like most of the UAE) has an astonishingly low crime rate. The safety in the city is of significant advantage to those considering buying property in Dubai. Here, crimes are unlikely to occur with the majority being traffic-related incidents.
5. Excellent transportation routes
As the city develops, they are also continuously expanding their transportation infrastructure.
For example, the U.S.-based Hyperloop One is forming an expedited transportation route between Dubai and Abu Dhabi. This incredible development will be the world’s first operational Hyperloop system, permitting passengers to travel between the emirates in pods at 1,200 kilometers per hour. In other words, it will be providing transportation from Dubai to Abu Dhabi in 12 minutes.
6. The Dubai tourism industry is flourishing
Another reason that investors are interested in Dubai is that their tourism industry is booming like never before. Incorporating tourism, trade, business services and other sectors, the Dubai economy remains strong. Moreover, the development of new hotels and real estate plans are a direct consequence of Dubai’s flourishing tourism industry.
7. It could be the happiest city in the world
In 2016, Dubai formed the Ministry of Happiness. The fundamental mission of this ministry is to produce and expand programmes and policies to advance the happiness levels of Dubai residents. If you are going to invest in a property somewhere, it may as well be where the happy people are!
8. You will never be bored!
If all the aforementioned reasons weren’t convincing enough on their own, maybe the city of Dubai itself will be the cherry on top.
Dubai offers unparalleled experiences for visitors and residents alike. Imagine living with the world’s best attractions at your doorstep: desert safaris, skydiving and water parks, luxurious spas, beaches and yacht communities, not to mention the extensive variety of gourmet restaurants from every region in the world.
9. Expo 2020 is coming soon
Additionally, in October 2020, Dubai is set to host the next World Expo.
Expected to draw roughly 25 million visitors from 180 nations, the initial news about the Expo happening in Dubai immediately boosted the off-plan property sector.
Property investors who opt to buy property near the Expo are assured a high return on investment, as the Expo will last six months, and millions of visitors will be looking for properties to rent. With such a high rental demand, landlords have the flexibility to increase rents. So if you’re a landlord by that time, think of the rewards you can reap if you invest now.
Have you considered investing in Dubai property? What is holding you back? Let us know in the comments!