Dubai has witnessed exceptional growth in past decades and this has attracted international investors time and again. Located in the perfect spot, Dubai is a junction between the east and the west. Intending to be one of the top four global financial centres of the world, Dubai has forecasted an increase in FDI to AED 650 billion which amounts to $177 billion. The growth plan for the next decade was announced by Sheikh Mohammed bin Rashid al Maktoum the ruler of Dubai.
While Dubai is headed towards being the financial centre of the world and the fastest-growing global city, UAE has also been termed as leading an emerging market across the Middle Eastern region according to Kearney’s 2023 Foreign Direct Investment Confidence Index creating a great space for real estate investors. It’s not just luxurious residential projects that are driving this growth, but mainly high-class hotels and commercial buildings are also contributing that rope in investors in the Dubai real estate market.
Growth of Dubai’s Real Estate Market
Dubai is the nucleus of the United Arab Emirates with a population of 3.5 million people. Being one of the most popular tourist destinations Dubai has an expanding economy. But tourism is not the only factor for the growth of the economy of Dubai. Real estate and financial services are two major contributors towards the city’s development of the city. In fact, Dubai is now one of the top emerging markets in the world. It’s one of the fastest-growing economies in the Middle East.
Dubai has been witnessing exceptional growth in the real estate sector, earlier this year a leading property portal disclosed that Dubai’s real estate sales transactions crossed 9,800 compared to 5,739 in January 2022 amounting to an increase of 128.5% year-on-year. While a 61% growth has been recorded in Dubai’s real estate sector compared to 2021, which amounts to Dhs240bn. One of the major contributors to this growth is off-plan deals, a way for investors to invest in Dubai real estate. In 2022, Dubai’s real estate industry has recorded 97.4k transactions.
One of the major credits for the growth of Dubai’s real estate sector goes to the Dubai government. Their initiative to support the real estate market by reducing transaction fees and providing residency visas for foreign property owners and other reforms have allured investors all around the world to invest in real estate in Dubai.
Here Are 4 Reasons Why You Should Invest In Real Estate In Dubai
While there are several reasons for foreign investors to invest in real estate in Dubai, here are four reasons why you should invest in Dubai’s real estate:
1. Strong and Stable economy
Over the years Dubai has proven to be one of the most stable economies with reforms to support foreign investments in real estate, stable government, favourable tax policies, and a diverse economy. While these investments are not just limited to residential properties, Dubai also attracts a lot of real estate investments for chic hotels and international businesses.
2. Lucrative Rental Yields
Dubai’s real estate is listed amongst the highest rental yield in the world. With an average rental yield of 9% leaving behind cities like London and York, Dubai’s real estate market offers lucrative investment opportunities for foreign investors. Dubai is an attractive destination for foreigners creating a great demand in the rental market from expatriates.
3. Strategic location
Dubai is at the crossroads of Europe, Asia, and Africa making it an ideal hub for trade. Dubai is also home to one of the world’s busiest airports that connect to over 200 destinations around the globe attracting businesses and investors.
From being one of the region’s top emerging markets attracting foreign investors to being backed by a supportive and visionary government Dubai becomes an ideal spot for investors to invest in real estate.
In a search of a great home or a great investment opportunity? Check out Silver Oak Properties for updates on the latest project insights on the real estate market, the best luxury property in Dubai and much more.
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