Dubai is a fast-paced real estate market that experienced record-breaking transactions in 2022. Around 97000 property transactions worth $73.39bn were recorded in the region. Despite the looming global recession and economic uncertainties, high-net-worth individuals continued to invest in Dubai which further accelerated the demand for real estate in the market. This demonstrates resiliency across the region with a myriad of investment opportunities reaching the pre-pandemic levels.
Additionally, the recent announcement of the Golden Visa for investors will attract exponential investments in the region. The 10-year visa allows foreign nationals to invest in Dubai real estate market by simply purchasing a residential property or making a large investment and living in the city for five to ten years. As a result, Dubai has emerged a lucrative investment destination mainly for Indian HNIs due to its proximity and ease of travel restrictions.
Top 5 reasons to invest in Dubai
Here’re 5 key reasons that make the city an attractive prospect for investment:
1. High Rental Yield
Dubai personifies opulence and luxury. From all across the world, investors are experiencing ease in doing business in UAE like never before. In this, the country’s decision to provide 100% ownership to non-Emiratis in business has proven to be a game-changer. As a result, the city’s real estate market is booming, attracting business owners to invest in Dubai real estate by owning a piece of commercial or residential property.
As compared to global markets, Dubai offers one of the highest rental yields while offering a lower cost of purchase. For instance, Dubai’s annual rental yield is 5.82% as compared to New York and Singapore offering 3.91% and 2.83% rental yield respectively. This highlights a strong talk point for people planning to invest in Dubai.
2. World Class Infrastructure
Why do investors choose to invest in Dubai? With its modern infrastructure, the city’s high-class economy offers top-line opportunities to invest in Dubai. Furthermore, urban planning and smart amenities have shaped the region into a world-class city with skyscrapers, megamalls and cutting-edge technology transport facilities. The multi-diversified economy is expanding rapidly which will eventually become an incredible city to live and invest in.
3. Tax-free Investments
We all know that UAE is a tax-free country. People who invest in Dubai do not have to have the burden of annual property tax, income tax and others like taxes on capital gains & rental revenue. It offers immense opportunities for investors to strengthen their financial portfolio while being extremely relaxed about not paying taxes apart from municipality fees or private community charges.
4. Booming Tourism
In recent years, a huge chunk of the population has settled into the city as long-term residents, yet it still remains one of the top most tourist destinations in the world. World-class attractions like Burj Khalifa, Palm Jumeirah and other globally reputed hotels offer a host of lifestyle experiences to tourists. As the city continues to add more opulent offerings, it will stay ahead in luring investors to invest in Dubai.
5. Robust Regulatory Framework
Since Dubai’s real estate is one of the fastest-growing markets in the world, it becomes imperative to have a stringent regulatory framework in place. Dubai offers a strong framework of laws and regulations to protect the investor’s interest in the city. The Dubai Land Department and its regulatory body RERA (Real Estate Regulatory Authority) regulates the market, making it more worthwhile for people to invest in Dubai.
There is no denial of the fact that Dubai offers fruitful opportunities for people who want to work or live amidst the lavish lifestyle. Investors do not even think twice before deciding to invest in Dubai as it provides a gamut of experiences and more than that – an impressive ROI. Undoubtedly, the city’s real estate future is bright, followed by the economic and growth achievements of the UAE.