Dubai is one of the largest hubs for property investors. The real estate industry of the UAE is booming, and investors are attracted to long-term investment plans. Also, the real estate industry of Dubai is one of the most sustainable investments and indeed the best option. But, you need to know that investments in Dubai can be a bit tricky. Most importantly, before investing in the booming industry, do your research and learn all the market aspects.
Is it a good idea to invest in Dubai’s market?
If you have decided to invest in the Dubai real estate market, you need to have a clear mind. Investing in Dubai’s real estate is an excellent idea to generate stable income and wealth. But, like other investments, one wrong decision can take all your hard-earned money. Before hiring a buying agent or any other investment company, make sure to think about the returns on your investment. Moreover, do your research wisely instead of taking others’ advice.
Let’s explore some reasons why you should invest in the real estate industry of Dubai.
High Rental Yields:
Compared to other mature real estate markets globally, Dubai’s real estate market offers much higher rental yields. Surprisingly, you can earn between 8% to 12% gross rental yield on average.
The real estate industry of Dubai is tempting; you may have a chance to get a residency visa as per the new visa laws. The calculation is simple—if you invest in one property or multiple properties worth over AED 1 million, you might get a two-year residency visa (terms and conditions apply). In addition to this, if you invest in property worth over AED 5 million, you are eligible to get a five-year residency visa. You can also get a ten-year residency visa if your investment crosses AED 10 million.
The absence of capital gains or income tax is the fanciest part of investing in Dubai’s real estate. You can consult or get assistance from the top investment companies in Dubai to know about the tax conditions. As compared to other real estate markets, the tax terms of UAE tempt the investor to make huge investments.
Want to own prime real estate? There is no better option than Dubai. The city’s property rates (per square foot) are lower than any other top investment city in the world. Indeed, Dubai is a place to live and invest.
Is it a good time to invest in Dubai?
A lot of industries have suffered due to the pandemic. Covid-19 has left a significant impact on the global economy, and the world is trying to overcome the damage. But, if you keep the pandemic in your mind while deciding, whether is it a good time to invest in Dubai? Well, Yes, it is a good time to invest in Dubai’s real estate.
Buy high and sell high is the deal behind any investment. Regardless of the capital of the investment, if you are investing, you think about the high returns. Also, the long-term investments demand attention and focus, and at times you need to let go of your intuition.
You can also learn from the past statistics and notice the trend whenever the optimism returns, the value of the property bounces back to the original position. After the setbacks of the pandemic, the face of Dubai’s real estate market is coming back to normal. Hence, it is a rational decision to invest in the property of Dubai.
Factors to consider before selecting an investment property:
When you are buying a home for yourself, you pay attention to every small detail. In the same way, before investing in a property, you must inspect every nook and corner. Yes, the main focus is high returns on investment. But, you can find a secure property. Listing down some factors that you must consider before finalizing a property for investment.
- Interest rates
- Location of the property
- Size of the property.
- Facilities such as Hospitals, Transport, recreational centers, etc.).
- Quality of the area
- Market condition
Where to invest?
Coming to the main and the most basic question. If you are thinking of investing in Dubai’s real estate market, you must have an idea of the top locations. The area is the most important factor of investment. Downtown community in Dubai needs no introduction; it is one of the most top locations of the real estate industry of Dubai.
The largest mall and the tallest tower is in Downtown Dubai; the landmarks are internationally renowned and recognized. Not to mention, the high tourist rate of Dubai is due to these landmarks. Millions of people globally come to the UAE to see these landmarks. Now, imagine the popularity and prestige of this location. Downtown Dubai is one of the hot locations for investors. But, property investment is tricky, and research is the key.
Investment in any field is the most important decision. One wrong step can take away all your hard-earned money. Investing in Dubai’s real estate is fancy, but it requires confidence, research, and critical evaluation. Also, if you are a first-time investor, get in touch with reliable sources to avoid frauds and scams.