A magnet in the UAE property market, Dubai is an active metropolis that is nestled in the middle of a desert landscape. The city, which is a tourist hub, attracts real estate investors the world over. Because of Dubai’s accelerated growth rate, now is a propitious time to invest in real estate.
However, in order to buy property, you also have to be aware that Dubai’s government enforces strict regulations to protect investors. The city’s approved budget for 2016 gives the government even more leeway to regulate the real estate industry. The regulations apply to developers and track their off-plan marketing and sales figures. As a result, the city’s land department strictly tracks each developer’s progress to ensure that the financial resources that are used are directed only to construction.
Property investment in the Dubai market generates a passive income stream. Therefore, one of the most feasible and the most attractive investments in UAE real estate is the property market in Dubai. Future projections show a rewarding increase in profits. Compared to investments such as equities, the long-term benefits of investing in real estate feature a low volatility. Real estate also assists in diversifying an investor’s portfolio.
Not only that, Dubai is known as a home for expats. Therefore, the rental demand never stops. As a result, most real estate investors choose to invest in buy-to-let homes because the properties can be rented easily and experience a higher turnover rate.
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As mentioned, Dubai welcomes a regular flow of tourists in its city. Therefore, the city is known for its world-class tourist attractions and hotels. In 2015 alone, Dubai was named the fourth most visited city in the world. About 14 million visitors stayed overnight in the city last year.
New Real Estate
Dubai is simply not slowing down when it comes to constructing upscale properties. Infrastructure features include hotels, theme parks, and shopping malls. In 2016, Dubai is expected to introduce several residential developments to the market and four theme parks.
The UAE itself is positioned geographically in an ideal spot and therefore benefits from its location. Not only is the environment business-friendly, but the country also possesses several free zones that feature tax frameworks and incentives for international organizations.
Currently, the UAE is diversifying its economy in response to lower oil prices. The country is now 70% independent of the economic need for oil. In fact, UAE leaders are planning strategies so they do not have to depend as heavily on the product.
An Upcoming Opportunity
The city will play host to the World Expo in 2020, which is projected to attract 25 million visitors – evidently good news for real estate investors. The influx of people will need accommodations during the event. Both commercial spaces and homes, as a result, are considered prime properties for investors.
As a result, real estate investors are seeking properties located in major locations where the risk is low for a market slowdown. Established locations with easy road access are the preferred real estate. Master communities that are built by reputable developers are currently preferred investment choices as well.