The 2008 financial crisis shuddered the Dubai economy drastically and particularly the real estate market, which left global investors hesitant about investing in the UAE. A change in scenario was soon realised with the surging reality space and Dubai emerging as the world’s strongest property market. At present, global investors are attracted to the city’s off-plan projects and keen on building their investment portfolio in the capital of UAE.
Before we get to why investors are flocking across the world to invest in Dubai’s real estate market, let’s look into some facts and figures.
Dubai’s real estate market statistics:
- Dubai’s rental space thrives with a sharp increase of 27% in the month of October.
- Q3 2022 emerges as the best performer in the reality space with a prediction of further growth in Q4.
- September 2022 depicted a nine year record breaking figure of 42 billion.
- A Reuters poll of the property market suggested that investors can expect an average growth of 6.5% in 2022.
- The Dubai property market is predicted to end the year on a high note.
- The city offers a high rental yield of 7% which is higher than global cities like London, New York, Hong Kong, Singapore and India.
What attracts global investors towards Dubai’s real estate market?
- Golden ticket to residency
Investing in Dubai is a golden entry to the city of luxury. UAE welcomes foreigners, varying from diverse backgrounds and nationalities. Not so long ago, UAE announced the golden visa system offering a 10-year residency to property investors with a commitment of more than 2 million AED.
- Low acquisition cost
A high acquisition cost is a major reason for global investors drifting away from putting money in. Comparing it with other major cities of the world, Dubai holds a low acquisition cost (30% – 70% lesser).
- High rental return
Dubai’s rip-roaring rentals are driven by surging expatriate workers in the city. With extravagant cities like London and Singapore providing a rental of 3.21% and 2.83% respectively, the average rental yield in Dubai is not less than 5.82% and going up to 10%. A handsome rental return is a big opportunity knock for investors.
- High security
Another reason to add feathers to the Dubai reality market is the level of security. Dubai is ranked as one of the safest cities in the world. Some rigorous law enforcement have resulted in the crime rate being very low. A sense of being safeguarded has propelled global investors to get associated.
- Tax-free
Here’s a bonus point that attracts global investors instantly from investing in Dubai’s real estate market. The UAE government has not imposed any tax on properties and Dubai is never expected to resort to taxation. With a property deal being closed by only paying the equivalent charges, the dubai reality shows an upward graph.
One Last Thought:
Barring the aforementioned, lots of reasons have driven Dubai’s real estate market leading to an unbeatable economic growth. Global investors are betting on the city with much credit to the top-notch law enforcement, strategic locations, diversified economy, unmatched infrastructure and business-friendly regulations.
In a snippet, Dubai’s real estate market is dominating the globe which has boosted foreign money in the country. The market is a right pick with lucrative options for investors and HNWIS.
Feel free to contact HRG Investment experts.