Investment, as we know it has been undergoing a lot of change in recent years. People are now looking at avenues around the world for investment opportunities. Of all the investments options available, Real Estate is still one of the preferred means of building wealth. And, the best part is with international cities opening up to real estate investments for foreign nationals, the avenues have become more lucrative than ever. The Dubai Real Estate market is one such alternative that is attracting investors from around the globe.
Why should you invest in Real Estate?
The famous American businessman and author, Robert T Kiyosaki once said, “Real Estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.” There are many advantages of investing in real estate, here are the top 5:
- The rental income can be a lifetime passive income option.
- Your portfolio gets diversified by investing in real estate since it is not linked to market performance and works in tandem with inflation (when inflation rises, the prices of property and rent rises too).
- This investment can be financed and the rental income can be used to pay the installments. As time goes by and the loan gets cleared, you get benefited from the increased property value.
- You have better cash flow.
- In emergencies, you have an asset which can be used as a collateral for quick and cheap loans.
The Dubai Real Estate Market
Dubai offers a great opportunity for global investors. Here are some benefits of investing in Dubai:
- It helps connect Middle-East, Asia, Africa and Europe.
- Dubai arguably stands proudly among the list of top cities that provide state of the art infrastructure to its residents.
- A wide range of business premises ranging from the mainland to free zones
- UAE is the third most peaceful country in the Middle East and North Africa (MENA) region.
- Crime levels in Dubai are among the lowest in the world. The government pegs a lot of importance on good living conditions and quality of life.
- According to Doingbusiness.org. UAE ranks first in the region for the ease of doing business. This is based on parameters like starting a business, dealing with permits, registration of property, etc.
- Dubai has a favourable business regulations to encourage foreign investments.
In 2002, Dubai’s Crown Prince issued the Freehold Decree or a formal legislation allowing foreign nationals to buy, sell, and lease or rent property in Dubai. With no special permissions required, it is now easy and profitable to buy property in Dubai. Broadly speaking, buying a property in the Dubai real estate market can be divided into two types:
- Off-Plan Purchase
- Resale Purchase
In the Off-Plan purchase, you buy the property from the developer in the under-construction stage. On the other hand, in a Resale purchase, you buy the property from an owner or an agent. Dubai Realty offers a perfect mix of studio apartments, 1-2-3-4 bedroom apartments, condos, penthouses and villas/ bungalows. Choosing the right property that offers a high yield and a continuous demand by renters is essential so that you can earn maximum returns from your investment.
Further, banks and financial institutions offer loans for property purchases with minimal documentation at competitive rates. Loans are available for up to 25 years. Also, overseas loans are permitted for investing in Dubai Realty.
Why should you invest in Dubai Real Estate?
Over the years, Dubai has evolved into a truly global city offering great avenues for business and investments to people around the world. The Dubai Real Estate market is regulated and sustainable due to its central location between the East and West, high demand of property both for purchase and rent. Here are some benefits of investing in Dubai Realty:
- As compared to the other global cities, like New York, London, etc., property prices in Dubai are still inexpensive. This means that there is a tremendous scope for growth. Every year, the demand for properties is increasing at a rapid pace. This makes it a good investment option.
- Being a global city and a trading hub along with a plethora of benefits, properties are always in demand in Dubai and finding a tenant is not a difficult task.
- Like the stock market, the real estate market is volatile too. However, it almost bounces back. You will never face a situation where the value of your property suddenly falls to zero. Hence, investing in real estate hedges you against the possibility of a complete loss of capital. In Dubai, as the government encouraging business and trade, property values are expected to invariably rise.
- Investment opportunities in Dubai are open to anyone from anywhere in the world. By investing in real estate, you can benefit from the growing economy of Dubai too.
- Banks in Dubai are easing the norms for home loans and boosting the demand for properties. And an increased demand leads to an increase in supply. This brings better deals and more options for buyers.
- If for unforeseeable reasons you need to take a loan later in life, a real estate property can work as a great collateral. It ensures that you get loans quickly at a good rate. Banks in Dubai offer these loans at the lowest possible rates.
Investing in a city that is committed to growth and development, like Dubai, ensures that your money fetches you unparalleled returns. Ensure that you research well and find a property that helps you achieve your investment goals. The Dubai Real Estate market is growing at a consistent pace and with the World Expo 2020 slated to be hosted in Dubai, one can only expect further growth.