Foreign investment accounts for a significant portion of UAE GDP. An impressive percentage of which can be attributed to real estate buys. Real estate in Dubai has been a sound investment since the world started paying attention to the opportunities that this region has to offer, when dealing with a politically and economically stable country. Unfortunately, there are not many destinations in the region which would be considered stable, and even less which have opened their doors so widely to foreign nationals and allowed them to profit from direct investment. Currently, the UAE is arguably the safest investment destination in the world, and it’s open to everyone.
What differentiates Real Estate in Dubai from the Rest of the World?
Dubai is city that has gained unrelentless economic traction. As the world’s leading emerging market, the UAE’s population is expected to grow exponentially over the next decade. In order to accommodate the influx of new business and the disproportionally large expat population, real estate developers have been hard at work building residential, retail, commercial and infrastructure expansions. Because of this, a healthy supply of top-notch property has become available for purchase, directly from the master developer, for very competitive prices. Many developers are encouraging investors to buy their properties with minimal down-payments and will even allow you to pay off the majority of the price-tag over the next ten years, without ever dealing with a bank. Too good to be true? Have a look at the average residential rental yields generated over the last 5 years, compared to other major real estate investment cities in the world.
| City | Avg. Rental Return (%) |
| Dubai | 7.31 |
| New York | 3.91 |
| London | 3.21 |
| Singapore | 2.83 |
| Hong Kong | 2.82 |
Dubai blows other cities out of the water when it comes to real estate investment returns. Add the fact that there is no income tax in the country and you’re looking at some of the best investment returns in the world, regardless of industry.
The Future of Real Estate Investment and Capital Gains
Dubai has shown no signs of looming economic down-turns. Although real estate in Dubai purchases were slow last year, we’re seeing a rejuvenated acceleration as landmark residential property developments near their completion and handover dates; an indicator that investors were waiting for the ideal property and time to buy.
As the Dubai economy continues to grow and attract a foreign work-force, population growth rates are also at an all-time high. Increased demand for property in the next decade will inevitably see property values increase; a welcome benefit for investors looking to profit from capital gains in the next few years.
Dubai is expected to absorb an economic boost in the months leading to the Expo 2020 and the city expects to ride that spike for several years after the world’s most famous business exhibition is completed. The anticipation and promising benefits of the expo is one of the leading causes of an increase in foreign investment today in Dubai. It’s simply the perfect time to invest in real estate in Dubai.
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