Dubai is one of the vibrant places on earth and is attracting visitors and long-term migrants from both the East and the West. The emirate’s popularity is easy to understand. In a relatively short space of time Dubai has grown to become one of the world’s best places for business and is now home to the Middle Eastern offices of 80 percent of the world biggest corporations.
As well as providing a great place to work, the city is a great place to invest and Dubai real estate is a thriving industrynowadays because the properties there are more affordable compared to other global hubs and can potentially provide a much greater return of investment (ROI).
Here we look at some of the main reasons why investing in Dubai real estate can be a smart move.
Potential for fast value growth
Like most places, the value of property in Dubai was slowed during the economic downturn, but it still managed to outgrow many parts of the world and has soared significantly in the past year.
Indeed, figures published by Cluttons Middle East show that values increased by 51 percent during 2013 and have continued to rise throughout 2014. Compared to major global hubs like London and New York, the cost of property in Dubai is very reasonable, meaning there is a much greater likelihood of turning a considerable profit on any sale.
Rents are increasing significantly
If you are looking to purchase a property to rent out then Dubai is just the ticket. In the past year, increased job creation has led to more people moving to Dubai and seeking homes on a rental basis.
During the first quarter of 2014, the rental value of a three-bedroom villa in the family-orientated Springs region rose by 13 per cent. Similarly, rents were up by 11 percent in both Jumeirah Lake Towers and International City, while Dubai Marina rose by ten per cent.
Zero percent tax
Another key incentive to invest in Dubai real estate is the fact that there are no capital gains taxes, meaning you won’t be stung with charges on any profits made on a property sale. There are also no corporation or income taxes, which continues to attract new residents and companies and ensures that occupancy levels remain at 95 percent or more all year around.
All in all, Dubai provides significant investment advantages. The real estate market is buoyant, the potential returns are substantial and the growth of industry is ensuring that demand for retails remains high.