The greatest location to purchase Dubai property will depend on your priorities, the size of your family, your financial constraints, and, if you’re an investor, your financial objectives. Fortunately, the city is a sanctuary for real estate investors thanks to the variety of reasonably priced, modern, and distinctively planned residential complexes.
Every real estate investor or home buyer can find something in the emirate, from modest 1-bedroom apartments to opulent villas and opulent townhouses for sale. More investment opportunities for buyers are anticipat to result from the upcoming Expo 2020 projects. The moment is right to invest in real estate in Dubai with developments like these already under way and a promising real estate market offering competitive prices.
Here are the reasons why investing in Dubai property is the most beneficial.
Continuous Innovation & Development
Dubai is well on its way to become the world’s smartest metropolis. One of the major advantages of purchasing real estate in Dubai is the constant novelty of the city.
When millions of people come to visit this city every year, they need somewhere to stay, so why not your property? A city where something new is happening all the time is always the focus of attention for the masses.
The Burj Khalifa, now the highest structure in the world, is located in Dubai, and soon another tower will surpass it in height. The new initiatives put out and started by the Dubai government are a positive indication that purchasing real estate in Dubai might be the best choice you ever make.
What does this recent growth indicate for your real estate investment?
Due to the quick development, there will be new shopping centers building nearby and new roads connecting to the neighborhood, raising the value of your Dubai property over time.
Growing Population
In Dubai, the population is growing astronomically. The population has increased by 86% from 2008 to 2018.
Would a piece of real estate in a deserted community where residents are leaving to go somewhere else bring in any money for you? Dubai is a multicultural metropolis with residents from more than 200 nations, thus the population of the city is growing every day.
The fact that people from all over the world come to Dubai in quest of better employment and business prospects is one of the main advantages of purchasing real estate there. After all, none of these people will spend the rest of their life in hotels, so they all need somewhere to remain.
What is the main advantage of purchasing real estate in Dubai? Dubai’s population is growing at a pace of 10.7% Year on Year, according to the World Population Review. Dubai now ranks among the cities with the fastest population growth.
Safety & Security
The sense of security that Dubai residents experience is just one of the numerous advantages of purchasing real estate there. This is among the main factors influencing people’s decision to relocate to Dubai and begin a new life. Dubai continues to be the most stable city in the MENA area, despite the fact that several nations in the region have experienced and are currently experiencing their fair share of political unrest.
The Dubai Police are well-known for their promptness, friendliness, and ability to operate expensive vehicles. Even following a roadside collision, in my six years of living in Dubai, I have never seen two people fighting. The customary procedure is to exit the vehicle and summon the authorities to inspect the damage and identify the guilty party.
The fact that theft and robbery are unheard of in Dubai is one of the biggest reasons to purchase real estate there. In a public parking lot, you may leave your car door open and nobody will be tempted to break into it while you are away.
Affordable Luxury villas in Dubai
Luxury villas in Dubai are considerably less expensive than those valued in other important cities across the world like Hong Kong, London, and New York, according to the Knight Frank Wealth Report for 2019. Any buyer would be compelled to invest in luxury properties in Dubai by the availability of premier properties that meet or exced the standards of those available in these cities. The emirate’s luxury portfolio is unmatch and includes fully furnish apartments, opulent villas, and top-tier penthouses. Villa-focused neighborhoods like Emirates Hills and Jumeirah Village Circle (JVC) may be of interest to investors.
Access to property in Luxury Areas
It is common knowledge that homes bought in desired locations offer more ROI than those in less desirable locations. Luxury districts in Dubai have gained popularity with investors, according to a Bayut analysis on the property market for the third quarter of 2019. According to the third quarterly research of real estate prices in the UAE, Palm Jumeirah and Dubai Marina are the two most sought-after neighborhoods for apartment purchases.
According to Bayut’s year-end real estate market report for 2019, Dubai Marina maintains its position as the most sought-after neighborhood in Dubai for apartment purchases.
Availability of affordable off-plan property
The fact that properties that haven’t even been built yet are offered for sale at substantially lower costs is one of the apparent advantages of buying off-plan real estate in Dubai. The off-plan development includes off-plan apartments, townhouses and luxury villas in Dubai. Investments become more inexpensive in comparison to construct developments when appealing payment plans and workable incentives are added to the mix.
Off-plan real estate in the emirate offers excellent financial flexibility, which can be advantageous to both novice and seasoned investors. Every month, a number of projects are unveil, which causes developers to begin bidding on advantageous financial terms and costs. For instance, a developer might provide a payment plan that enables customers to pay 50% up front and 50% once the project is finish.
Low Acquisition Cost
You can read my detailed essay on this subject, which discusses how Dubai’s purchase costs are far cheaper than those in other global real estate hubs, here. Actually, to be more accurate, the average price per square foot in Dubai is USD 468, but the same property in London costs USD 3,208.
Higher Rental Return
The high ROI offered to purchasers and investors is one of the main benefits of purchasing a property in Dubai. When it comes to apartment sales, the majority of the city’s prime communities offer ROIs of over 6%. If you buy villas in Dubai, it typically provides rental returns of over 4%. The International City neighborhood in Dubai, for example, offers rental yields of over 9%. This is a noteworthy factor for people looking to buy real estate in Dubai.
Rental yields in Dubai are substantially greater as compared to major real estate centers in the world. The areas of Dubai that do the best generate an average rental yield of 10%. The average rental yield in New York is only 3.91%, compared to 3.21% in London, 2.83% in Singapore, and 2.82% in Hong Kong, respectively.
