Are you looking for a business opportunity which would guarantee you huge returns in Dubai? Your best bet lies in Dubai’s real estate. The real estate industry in Dubai alone contributes 22% to the city’s GDP, and in the run-up to Expo 2020, the industry is poised for a giant leap.
Why Analysts Foresee a Real Estate Boom in Dubai
Housing prices in Dubai are now at level with the prices in top hub cities of the world. The continued price surge year after year, make analysts forecast a doubling or trebling of house prices by 2020. Realtors, therefore, have a fantastic opportunity to reap huge dividends on their investments. The expected boom in the city’s real estate prospects is driven by three factors: the mindset of the middle class, the upcoming 2020 expo and the influx of funds from abroad.
Unlike other major business hubs in the world, middle classes in Dubai have an aversion to shoebox-style living. What they prefer, instead, is spacious homes, something akin to the US or Australian lifestyles. It is because of this that high-end property in Dubai has witnessed a steady flow of money from other global cities. When you invest in real estate, you can cash in on this mindset and trend to make the most of your investment. Though the prices per square foot do not figure in the least affordable global housing list, it is expected that the city will leap into the bracket as it prepares itself for the 2020 Expo. To set the ball in motion, Vice-President and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum have issued decrees to ensure smooth accommodation of 20 million visitors by 2020. This has triggered a flurry of construction activities along with the top 109 projects currently under construction.
What Real Estate Investors Need to Do
Given that real estate is always a long-term proposition for investors, and that opportunities keep changing around the world, Dubai, today, presents an excellent arbitrage opportunity. We believe investors should now pull themselves out from overpriced cities like Hong Kong, Tokyo or London and re-invest in Dubai where the capital and rental grow for the next five years will be much higher.
Working on real estate projects in Dubai won’t pose a problem for foreign realtors as most of the buildings are built and designed to meet the needs of international investors and tourists. Architects come from all over the world and finding the right skill in the city is relatively easy. Construction projects are undertaken by both local and foreign companies. With an offshore company set up in Dubai, you can avail a host of benefits — tax-free operations and quick incorporation — which would help your business grow and flourish in a short time.
Having said that, the real estate market in Dubai does have its own set of challenges, foremost amongst which is understanding the country’s legal requirements and compliance laws. If you are planning to set up your real estate services in Dubai, you need the right business consultant to take you through the process of business startup. Get in touch with us for more.