Explore The Facts of Investing in Dubai Real Estate

Real estate is believed to be the backbone of the UAE’s economy. Encapsulating architectural marvels and massive skyscrapers, Dubai has turned into a core business market for the city. People visiting Dubai for jobs and business purposes have increased the property demand. With demand, property values are also increasing in Dubai, attracting real estate investors from all over the world. Besides good valuation and demand, there are many lesser-known things about the Dubai property market that make the place worth investing in. So let us walk you through the ten most prominent Dubai Real Estate facts.

Dubai Real Estate Facts –

• Low Acquisition Cost

Cost-effectiveness is one of the major parts of the real estate business. A higher acquisition cost fails to attract buyers and investors. But the Dubai property market has a lower acquisition cost when compared to the other capitals of the world. Thus, it attracts investors not only from other UAE emirates but from all over the world. The per square foot price in Dubai is around $468, whereas it is $3208 in London. It is a huge benefit that makes a big difference to investors if they invest in the Dubai property market. 

• Higher Rental Return

Rental returns also play a major role in determining the value of a property business. About 85% of Dubai’s population is international, which has augmented the rental market and resolved the accommodation hassles to welcome everyone. Some of the best rental areas in Dubai offer up to 10% returns, whereas London and Singapore offer only 3.21% and 2.83%, respectively. The average rental yield in Dubai is not less than 5.82%. Thus, the higher rental yield is the alluring factor of the Dubai property market, making it a lucrative investment.

• Population Growth

Population growth increases the demand especially when the growth is constant and the population is non-native. Reportedly, from 2008 to 2018, Dubai has experienced an 86% increase in the population. Dubai has become a cosmopolitan city, which includes citizens of more than 200 cities. This phenomenal population growth has made the Dubai property market the fastest emerging business hub in the world. 

• Dubai Real Estate Facts – Better ROI

Dubai is amongst the most sought-after places to invest in real estate. With the presence of futuristic facilities and amenities, Dubai is serving as the hotbed for real estate investment. Dubai generates a handsome rental return when compared to other metro cities in the world. Thus, if you have any plans to buy a property in Dubai, be it for personal usage or for rental purposes, we would recommend that you not delay any more. 

• A Dubai Property is a Ticket to a Resident Visa

Purchasing a property in Dubai makes you eligible to apply for a resident visa. Throughout its rich heritage and history, the UAE has consistently welcomed millions of individuals, ranging from diverse national and cultural backgrounds. 

Note- The resident visa is valid for 10 years. 

The resident visa brings a lot of convenience to the applicant, from reserving a car and getting a driver’s licence to opening a bank account in Dubai. This visa provides a lot of advantages to applicants and their families while supporting the growth opportunities for an individual.

• Dubai : The World’s First Climate-controlled City

Dubai has revealed its plans to become the world’s first climate-controlled city. The plan is to make a 48 million sq. ft. city, which includes,

• • Apartment complexes
  • Around 100 hotels
  • The world’s largest indoor amusement park.
  • entertainment centre with a capacity of 15000 people.

The model of the city and its cost are expected to be revealed at the Dubai Expo 2020.

• Freehold and Leasehold Areas

The Dubai government has divided the property buying area into two categories. 

• • Freehold areas

Freehold is the area where Emirati and non-Emirati can both buy property.

• • Leasehold areas

Leasehold is the area where non-Emirati can not buy but lease the property for up to 99 years. On the other hand, the locals (Emiratis) can buy a property in the leasehold regions as well. 

• There is No Property Tax

Dubai is the only emirate where you do not have to pay a property tax and you can benefit from buying an untaxed property at a legit price. The Government of Dubai has not imposed any tax on the property. The tax-free properties have uplifted the Dubai real estate market. 

• Dubai : Centre of Worldwide Events

Year by year, Dubai is becoming the centre of world ceremonies and events. Be it global conferences, world expos or cricket matches, all the events are slowly gearing towards Dubai. This shift has become a big advantage for the real estate market. Thus, it is the best time to invest in the properties of Dubai.

• Safe and Serene

Another Dubai Real Estate facts that adds feathers to the Dubai property market is the sense of security that the people of Dubai experience. This sense of belonging and protection propels you to extend your stay and business in Dubai as your assets and profits are growing at a good and safe place. However, you can invest in the Dubai property market to reap the benefits later.

In Conclusion

Dubai real estate market is driving the city towards prosperous economic growth and stability. The investment opportunities and developing technologies are aiding the growth of the property market in the city. Through its various offerings, Dubai is on the path of real estate domination across the globe.

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