Reasons to invest in Dubai Real Estate Market
In line with being one of the most visited countries in the world, the Dubai Chamber of Commerce has predicted the city’s tourism and travel sector to reach more than $56Bn in 2022 – an ideal investment climate for you to take advantage of:
- Tax free Income
- High Returns on investment
- One of safest nation on the globe
- 0% property and inheritance tax
- Top renowned iconic landmarks
- Gold card permanent residency visa
Dubai continues to offer a wealth of enticing investment opportunities, with the city attracting AED28.6 billion (US$7.8 billion) in greenfield FDI in 2015, ranking Dubai as the 6th top city globally for foreign capital. Both local and foreign investors operate freely and securely in this robustly yet, sensitively regulated economy.
Dubai Financial Market (DFM) – the government-owned stock exchange – is a best-in-class international platform providing investors with innovative products and services to conduct trading, clearing and settlement in an efficient, transparent and liquid environment.
Additionally, the Dubai International Financial Centre (DIFC) is a 110-hectare district and major global financial hub for the Middle East, Africa and South Asia (MEASA) markets.
Established in 2004, DIFC (www.difc.ae) has its own independent, internationally regulated authority and judicial system, global financial exchange, tax-friendly free zone regime, catering to one of the most cosmopolitan business communities in the region. The district houses hundreds of financial institutions, including wealth funds and private investors, in addition to cross-industry multinationals, and a wide range of retail outlets, cafés, restaurants, art galleries, hotels, residential and public green spaces.
Few property markets in the world can claim to offer similar rental yields or capital gains as Dubai – and considering its strategic geographical location, sophisticated infrastructure and cosmopolitan lifestyle, it’s no surprise the city is a magnet for property investors.
Dubai real estate assets generated a 120 per cent return for investors in rents and capital gains over the 10 years since the Global Financial Crisis, according to a new report by Reidin/Global Capital Partners. In contrast, such assets generated a 75 per cent return in London and 63 per cent in New York. The bulk of the returns in Dubai were achieved through rental increases, the report said.
“Dubai offers attractive rental yields of between 10 per cent and 12 per cent,” said Niraj Masand, Co-Founder and Director of boutique real estate firm Banke International. “The average property price is also good, ranging from Dhs 1300 ($354) to 1500 ($409) per square foot.”
On the other hand, Capital Appreciation ranges from 20 per cent to 30 per cent annually for apartments and over 15 per cent for villas, according to PNC Menon, chairman and founder of Indian multinational real estate developer Sobha Group.