Dubai has become one of the fastest-growing economies of the world in less than 40 years. Established as the most appealing city for investment, Dubai has a highly diversified economy. This Middle Eastern city has transformed itself into a vibrant, tolerant and inclusive multicultural society over the years to become the biggest business hub in all of the Middle East.
The emirate of Dubai is famous for its towering skyscrapers, best malls in the world, and scenic waterfront tourism hub for foreigners. Other than the attractions it provides, Dubai is also an investor hub for people who are looking to purchase property in Dubai. For investors, it can either boost your current investment portfolio or prove as a secured home in one of the best destinations in the world.
Ten benefits of Real Estate Investment in Dubai
There are various factors that contribute towards choosing the best location to purchase properties in Dubai. These influencing factors are the size of your family, your other priorities, your financial goals as an investor, and budgetary concerns. But the good news is, the properties in Dubai are affordable, futuristic, and uniquely designed into residential communities.
There is something for every property investor or home seeker in Dubai, be it the luxurious villas and palatial townhouses for sale or a simple and affordable one-bedroom apartment for a small family. If you are looking to buying property or invest in Dubai’s Real Estate, the following are the benefits that will help clear your mind.
Constant Growing Economy
The economy of the UAE is constantly growing, and it is attracting more investors worldwide. The effort by the government is relentless to establish Dubai as an international business ground. The tireless effort by the government has been fruitful by providing numerous benefits like Tax Exemption and Free Zones. The projected economic growth in Dubai is aimed at substantially improving the transport, tourism, logistics, retail and wholesale sectors.
Expanding Population Growth
The current populace of Dubai has arrived at 3,2 million, which is a huge development for such a youthful city. People from more than 200 affluent countries from all across the world are residing in Dubai; hence the population is ever increasing.
Since people are constantly moving to Dubai in order to find better jobs and business opportunities, it is one of the best reasons to invest in buying a property in Dubai. Dubai’s population is increasing at the rate of 10,7% every year, according to the World Population Review.
With phenomenal population growth, the city has witnessed an 86% increase in population from 2008 to 2018. Many new housing projects have already started to accommodate this growing population. This will bring more investment opportunities for investors who want to get a higher return on their investments.
High Return of Investment (ROI)
Investing in Dubai’s real estate will generate a high return of investment due to a lack of taxes such as property acquisition and capital gains. Furthermore, a 5% minimum investment yield is offered in Dubai, which is higher than what many of the major cities in the world offers. Renting out your property is also a smart way to earn a good amount of money in Dubai.
The ROI of over 6% is offered by most key neighborhoods in Dubai when it comes to the sale of apartments. The Villa communities offer an ROI of over 4%. However, International City, a popular area for purchasing properties in Dubai, offers rental yields of over 9%.
No Annual Property Taxes
If you buy a property in Dubai, there’s no need to spend money on annual property taxes, unlike the other major cities such as New York, London, and Hong Kong. Once the property is bought, and the registration fees are paid, there’s no additional or ongoing tax that needs to be paid. This is one of the best reasons to buy property in Dubai.
By investing in a property worth AED : 1 million in Dubai, you will become eligible for an investor visa. The property you purchase, however, should not be under a mortgage or off-plan. After submitting a copy of your passport and the deed to the Dubai Economic Department, you will be issued a trade license on the property after getting the final approval from the Dubai Land Department. A two-year Residency visa can be obtained after that from the Immigration Department. Investing in a property greater than AED : 5 million will make you eligible for a five-year renewal visa.
Consistent Development and Innovation
One of the biggest benefits of buying a property in Dubai is the very reason that there is always something new about Dubai. This very fact has paved the way for Dubai to become the smartest city in the world.
The tallest building in the world, Burj Khalifa, is here in Dubai. The government of Dubai is always presenting innovative ideas to attract the masses to invest In Dubai’s real estate. The open travel framework in Dubai is truly magnificent and marvelous. It allows you to arrive anywhere in Dubai utilizing an open vehicle.
The RTA’s smart devices offer up to 173 apps that the residents can use to make their day-to-day commute in the city more convenient. Further, the Dubai 2021 Plan, set forth by Smart Dubai, is a step forward. It aims to make the emirate a “smart and sustainable city” over the next few years.
According to JLL’s City Momentum Index of 2017, Dubai was positioned number 11 in the list of top 30 most pivotal metropolitan urban areas around the globe.
Safe and Secure
Dubai and Abu Dhabi are the cities with the lowest crime rate, and UAE is one of the safest countries in the world. Dubai has adopted all the requisite measures to create a safe and secure city for both the residents, non-residents, and tourists.
The online Al Ameer Service enables residents to report a crime to the police anonymously. The Dubai government has taken a forward step towards maintaining law and order in the city by introducing the Smart Police Stations in Dubai. The government inaugurated the first smart police station in City Walk on September 18, 2017. The idea behind this landmark step is to make policing in the city more transparent and efficient. This is one of the most important reasons why many investors are investing in Dubai and starting a new life here.
Following are the different policies and steps the government has taken to maintain the safety, security, and well-being of the population
No Gun Policy
A solitary individual in Dubai cannot possess a weapon. Even a police constable cannot hold a firearm out in the open. The explanation is extremely straightforward; the gun laws in Dubai and in UAE are severe. The closest thing you can claim to a firearm is an Air Rifle. Getting a permit for the same is likewise exceptionally troublesome.
In Dubai or all of UAE in general, an individual possessing an unlawful weapon can get a prison time of least a half year and a limit of 10 years with money-related punishment of at least AED : 15,000.
Extreme Punishment for Involvement in Drugs
Another thing you need to be wary of in Dubai is the ownership of medicines. This can actually get you in a very difficult situation. There have been numerous occasions where, when the individuals were discovered being associated with sedate business, they were placed in prison for quite a long time and ousted from the nation afterward.
According to the law, an individual liable for selling or devouring medications in Dubai will get condemned to prison, take care of a powerful budgetary punishment, face extradition, and furthermore get boycotted from ever entering the nation. Therefore, getting involved in drugs and other sedated businesses is not a very good idea, generally speaking, and definitely not when you are in Dubai.
Extreme Punishment for Drunk and Driving
While drinking is permitted in Dubai however, driving affected by Alcohol is not allowed in Dubai. You are permitted to consume Alcohol in Dubai, but you need to have a permit for that and consume it in an authorized spot. Open drinking is not permitted since it can cause obstruction of public property and in the life of the overall population.
If you are discovered drunk driving, you will be placed in prison immediately. After that, a heavy fine will be forced on you. The prison term will be somewhere in the range of 3-4 years.
Exceptional Department for Women and Children Safety
The well-being and prosperity of ladies and youngsters are paid special attention in Dubai. The Dubai Foundation for Women and Children is an uncommon division set up for the security and prosperity of youngsters, kids, and women.
A plethora of investment options
There are a variety of options to choose from when it comes to investing in Dubai’s real estate market and enjoying its benefits at the same time. The two main categories of real estate investment in Dubai are residential properties and commercial properties. Residential property options include different villas and apartments, and commercial property options are offices, industrial properties, and labor camps.
Low Land Acquisition Cost
The prices of land available in Dubai for buying are lower than what it was in 2018. The average price per square feet is AED : 325 today, and it was around AED :700-800 in 2018. This is a grand opportunity for investors who are looking forward to buying a property in Dubai.
Bayut’s year-end property market report for 2019 ranked Dubai as the most popular destination to buy apartments. The report further stated that property prices in Dubai have plunged on average per square foot in comparison to 2018. This has resulted in increased transactions. According to the report, Dubai Marina stands first for popular areas to purchase properties in Dubai, while Palm Jumeirah secures second place.
The lowest price for a one-bed flat for sale in Dubai Marian stands at AED : 325,000. In contrast, the starting price for studios sale in Palm Jumeirah starts from AED : 600,000.
High Quality of Life
A prominent example of Dubai’s quality of life is the Dubai Metro. Dubai is internationally recognized as the most desired lifestyle destination in the world. The living standards and connectivity offered in Dubai are top-notch and outstanding. Hence, people are constantly moving and investing in Dubai’s real estate.
One of the weird benefits of buying a property in Dubai is that the emirate has a minister of happiness. The government is relentlessly working towards making the lives of the people in Dubai easier and happier. For this very reason, a ministry of happiness is added to UAE’s cabinet every year. The chief task for this ministry is to measure the happiness level of Dubai’s residents. Their responsibility includes taking certain actions which will enhance the lifestyle of people living in Dubai along with making them a lot happier.
While there are definite perks of property investment in Dubai, there is a major drawback that needs due consideration.
The initial cost that comes with the purchase can become a bit expensive. A mandatory DLD (Dubai Land Development) fee of 4% of the property value must be paid to the developer. Also, the fee for issuing the Title Deed and administration fee needs to be paid upfront.
In addition to this, a Mortgage Registration Fee of 0,25% needs to be paid to the DKD if the buys go for mortgages.
Drawbacks aside, the demand for investment in Dubai is constantly increasing. Buying property in Dubai is a feasible way for investors to enjoy many benefits like no additional annual property taxes, residence visa, high return of investment, affordable properties in the best locations.
So, if you are convinced about the benefits of buying a property in Dubai, you can go ahead and realize your dream of owning a property in Dubai and starting a new life.