A Quick Guide to Why Dubai’s Real Estate Market Is Favorable to Invest In
Dubai is known to attract people from all over the world owing to the luxurious lifestyle that it has to offer. The gorgeous skyscrapers, endless retail and dining options, low crime rate, excellent transportation routes and lucrative return on investments are some of the prime aspects for which people from all over the world have chosen Dubai to invest when it came to real estate. Let us have a look at some of the major reasons why you should invest in the Dubai real estate market.
1. It’s the Best Time
According to one of the leading independent financial advisory firms, Holborn Assets, the prices of properties in Dubai are expected to witness a drop in the next few years. This makes it an ideal period when you should take advantage of the lower price and invest in properties. The market also has potential for strong return on investments owing to the lack of taxes related to capital gains, property appreciation, salaries and rental yields.
2. No Annual Property Taxes
Investing in Dubai’s real estate will turn out to be profitable for you as you won’t have to spend money on annual property taxes. Upon purchase of the property and payment of the registration fees, there is no additional and ongoing tax that you will be required to pay.
Where in Hong Kong, a property owner ends up paying up to 15% as annual property tax, New York or London charges a little more than 2% from them. Because in Dubai, a property owner doesn’t require to pay the tax, it is but obvious that one can make more money in one’s real estate investments here than most of the other places in the world, making it an important reason why Dubai should be chosen by you as a real estate investor over any other place in the world.
3. Low Acquisition Cost
Besides the fact that investing in Dubai’s real estate will help you save a lot of extra bucks which you would spend otherwise on property taxes elsewhere, the other advantages that you will be able to enjoy by investing in the city include the low acquisition cost that it offers. When compared to the amount of money which you would have to spend in cities like New York and London, it can be seen that in Dubai, you will need to pay just a fraction of it while buying properties. You can expect to pay 30% to 70% lesser when it comes to comparable properties in Dubai than any other major cities in the world. Let’s not forget, investing in a property worth minimum AED 1 million also enables you to have a residence visa!
4. Good Return on Investment
As the population of Dubai keeps increasing, its real estate market keeps maturing. Therefore, if you are spending a handsome amount on rent each year, it is advisable that you rather own a property of your own, which can give you a good return on investment if you would ever want to sell it off.
Dubai is known to offer higher rental returns than many of the major cities of the world, with minimum rental yields at 5% and up to an average of 8% in residential areas like JVC. Therefore, you can also choose to give out your property for rent so as to earn a good return on investment out of it.
5. Expo 2020
The Expo 2020, which is expecting to welcome around 25 million visitors and new residents, is a major reason due to which there will most likely be an increase in economic activity in Dubai. Around 120,000 new properties are expected to be offered in the market, which is also an important factor why you should invest in the real estate market of the Middle Eastern hotspot, right away.