The world is now a global market in many ways, and it is now as easy to invest in real estate and stocks around the world as it is to buy stocks in your territory.
The number of investors worldwide over the past ten years has increased at an exceptional rate. Iconic cities like London, Los Angeles, Hong-Kong, and New York have seen a huge influx of foreign funds as investors around the world were interested in buying real estate in big cities.
However, the most critical essence of investing in a real estate business is the expected return over the period where you can enjoy regular income over time.
To achieve all the necessary goals, it is required to find the best location that is a centre for tourists and city dwellers, and there must also be a basis for the microeconomics to support the rise in property prices.
There are two types of investors — short and long term. Short-term investors mainly aim to profit from the market movement, while long-term investors examine the fundamentals and solidity of the opportunity and profit potential over a long period.
For short-term investors, current conditions and market conditions are particularly important. They want to enter the market during a bullfight and leave at maturity.
On the contrary, long-term investors do not pay attention to market cycles and observe the return on investments and where they expect to see it in five to ten years or more and the possible capital gain.
So is it natural that some investors wonder if this is the right time to invest in the Dubai real estate market or not?
Why Dubai?
Dubai has been a favorite investment destination for large and small investors since Dubai opened its doors to foreign investors. Global IFNs (wealthy individuals), NRIs (non-resident Indians), and European expatriates and other global players have invested with confidence in the Dubai real estate market.
A few events around the world have fueled the interest of investors across the globe in the Dubai real estate market. The UK’s exit from the EU also helped attract global investors to Dubai. Moreover, the Dubai property market is a favorite property investor.
In response to the increasing need for investment opportunities in Dubai, the Dubai government is taking important steps to ensure the process is more convenient and always more attractive to investors.
With this whole scenario, we have the Dubai World Expo 2020 in October 2020. For the 25 million visitors expected, the demand for housing is incredible, which is driving up the prices and should continue until 2021.
How does it compare to other cities?
Despite the decline in house prices and rents in recent years, rental income and return on investment in Dubai has more than doubled compared to other major cities in the world, such as London, Paris, and New York.
A recent study by the international rating agency Moody’s Investors Service revealed that demand for housing in Dubai should continue to skyrocket thanks to an attractive ROI of 6 to 7%, recorded in the last 12 months.
This is a very attractive income compared to other major capitals, such as London, Paris, New York, or Hong Kong, where the average rental income varies between 2 and 3%.
Dubai properties regularly offer ROI above 7% on average, which compares favorably to other major cities. Average ROI in Bogota is 6.5%, Montreal 5.0%, Bangkok 4.5%, France 3.0%, New York 2.9%, New York 2.9%, London 2.7% , Singapore 2.5% and Hong Kong 2.4%
What makes global investors prefer Dubai to other investment destinations?
- Dubai is known as one of the best cities in the world in terms of a better return on investment in the real estate sector. The city is way ahead of some cities such as Geneva, Zurich, Hong-Kong, London, and Geneva.
- Real estate in Dubaiis expected to contribute $ 33 billion by 2020 to Dubai’s growth. This shows the strength of the Dubai real estate market.
- Dubai offers better monetary value per square meter compared to other urban and semi-urban locations around the world.
- You will get rental income between 6% and 10% in the residential sector as income depending on the location and other facilities, and in shops, you can get about 7% to 10% of revenue, from here we are specialized.
- The UAE government offers investors many benefits to encourage more investment.
- Dubai is one of the safest and safest investment destinations. It has favorable regulations for companies that attract more investors from around the world.
Other factors that support this claim includes but not limited to:
EXPO 2020
The good news is there is no better time than now for any investor who wants to invest in the real estate market. As Dubai prepares for “Expo 2020”, it is expected to attract more than 30 million visitors during this time, which runs from October 20, 2020, to April 10, 2021.
That said, these millions of visitors will look for housing, and as an investor, you should earn extra money during this time. Investing in neighborhoods like Belgravia Square Ellington, which offers everything a potential guest could offer and promises a healthy ROI.
The future of the Dubai property market
In the current scenario, the Dubai real estate market looks very promising. We can expect positive long-term growth. Real estate prices will increase before EXPO 2020. Current price levels are very attractive to investors. Businesses and individuals making their first entry will benefit from improved growth. The developers offer attractive payment plans and other benefits to profitable investors, which provide additional return on investment. In short, this is the right time to buy a property in Dubai.
No Taxes
It is also a significant advantage not to pay property taxes on the purchase. Yes, you will have to make the initial payment compared to the initial taxes, but after making these payments, you can save a significant amount of money, as property taxes would be the least concern.
Non-Stop Flights
This city is an essential hub for airlines with direct flights to 210 cities. This means that you can quickly fly from most cities in the world to Dubai.
Security
Finally, one of the main reasons why one should voluntarily invest large sums of money in any economy is because of its safe nature. This city is known for its secure environment, which also attracts investors. Visitors and locals are more likely to rent accommodation in secure areas, and the reverse is true when they are known to be safe. Therefore, any investment is literally safe in this city.
