At around the same time a year ago, at the Cityscape Global real estate exhibition in Dubai, major properties for sale in Dubai were unveiled, valuing close to AED30 billion (US$8.17 billion).
Dubai’s Transformation
Over the last 2 decades, Dubai transformed from a desert into a vibrant investment hub attracting investors from various countries across the globe. According to an article by Khaleej Times, the city ranks among the world’s top 10 international cities for foreign investment at around AED27.3 billion (an increase of 7.1% from 2016). According to the Institute of International Finance, the UAE accounted for 22% of the MENA region’s total foreign direct investment.
Because of its flexible yet firm regulatory authorities and systems, the city is an attractive investment hub for local and foreign investors. Properties for sale in Dubai are becoming more reasonably priced for buyers as the market’s current trend is ‘affordability’. Addedly, with Expo 2020 nearing, properties are expected to increase in price, which is why many experts recommend buying now, as rental returns will be very attractive during and after the 6-month long exposition.
Properties for Sale in Dubai Compared to International Markets
Foreign investors are permitted to own residential property in Dubai. In comparison to Dubai, in major international cities such as London or New York, it would cost much more per square feet to purchase a property. In other words, Dubai properties for sale cost considerably less because Dubai is still a relatively newer market, unlike other global cities which have almost reached ‘saturation point’.
Due to this, investors are expected to earn a higher rental income in Dubai in contrast to other global markets. Addedly, the city does not place any taxes on rental income. This is a very attractive feature in the Dubai property market.
Safety and Financing Options
Dubai’s real estate regulatory authority, known as the RERA, is very strict. Developer activities are regulated, making transactions transparent under the law, thereby safeguarding the interests of investors.
The environment and reputation of a place are two crucial factors in making an investment decision. According to the World Economic Forum’s Global Competitiveness Index, Dubai is ranked as the second safest place in the world. In the city, walking at 2 am is not considered risky – unlike most other parts of the world.
In addition to the safe environment of Dubai, financing options for properties in Dubai can last up to 25 years. Investors can attain easy financing options and mortgages when it comes to purchasing property for sale in Dubai. Interest rates are anywhere between 3-5% and investors are recommended to keep the loan period short to pay a lower interest rate over time. Either way, investors can reap the benefits of high rental returns during the same period, which can aid in financing the property.
We at Ellington Properties can offer you a select range of luxury properties for sale in Dubai to meet your needs and goals. Contact us at info@ellingtongroup.com to discuss how we can help you.
