In the first half of 2018, Dubai saw AED 111 billion worth of real estate transactions, and with the recent announcement of 10-years visas being granted to investors, the total investment into the city by the end of the year is expected to be monumental. No matter what direction the market turns, Dubai has maintained its position as a solid choice for investors the world over. But what makes this city such an attractive prospect? LuxuryProperty.com takes a closer look at why you should be investing in Dubai.
Dubai, and indeed the UAE, sits in a very strategic location on the world map. It is roughly a six-hour flight from most of the major cities in the East and the West, offering a convenient waypoint for those who are crossing the globe and serving as a hub for local businesses who want to expand in either direction.
Booming Tourism Industry
Although Dubai has seen more people settling into the city as long-term residents over the past few years, it still remains one of the top tourist destinations in the world. With world-class attractions such as the Burj Khalifa, Palm Jumeirah and some of the most well-reputed hotels in the world, there is no shortage of wonders to experience. As Expo 2020 looms on the horizon, Dubai will continue to add even more lifestyle offerings that will keep the crowds coming in.
City of Innovation
Dubai is always looking to the future and trying to find ways to bring that into the present. New communities are being developed to create a more sustainable living experience for residents, new roadways are being constructed to keep the city better connected, and with its ongoing ‘smart city’ and ‘happiness’ initiatives, Dubai aims to make every aspect of life in the city hassle-free. There are also the architectural innovations, such as Dubai Creek Tower, which will eventually dwarf the Burj Khalifa, and Dubai Frame, the 150-meter tall ‘photo frame’ tower that creates a visual link between the older and newer parts of the city.
10-Year Investor Visa
Earlier this year, it was announced that investors into Dubai and employees of certain skilled professions would be granted 10-year residence visas. Needless to say, this is a major game changer for Dubai’s economy. Committing to such a long-term residence option shows the level of confidence that Dubai has in investors and signifies just how secure an investment into the city ultimately is. It was also announced that businesses in the UAE would no longer require a majority shareholder of local nationality, which will undoubtedly lead to a rise in entrepreneurship and homegrown businesses.
Strong Regulatory Framework
This announcement is just the latest addition to a strong framework of laws and regulations that are designed to protect an investor’s interests in Dubai. This is especially true in the property market, where the Dubai Land Department and its regulatory body, the Real Estate Regulatory Authority (RERA) continue to implement rules that ensure property developers deliver on their promises in a timely manner.
Over the span of just a few decades, Dubai has established a stellar reputation for itself in the global real estate market. Compared to many of its counterparts throughout the world, including New York City, Hong Kong and London, Dubai offers some of the highest returns on property investment. You can expect returns upward of 6%, even hitting double digits in certain areas and on certain properties. For the savvy investor, Dubai is a very lucrative option.
Safety & Security
Dubai is also known as one of the safest cities to live in the world, with a very low crime rate and an efficient legal system. People from all walks of life can come to the city and not have to worry about anything. Even with political turmoil raging in many parts of the world and across the region, the UAE has remained a haven for those living there.
Another major benefit of investing in Dubai, especially in the real estate market, is the lack of property tax. Although VAT was introduced earlier this year, it is still negligible in terms of overall costs and does not apply to residential property purchases. So you can buy a villa or apartment anywhere in the city and be assured that you won’t have to part with a portion of your returns each year.