Is Dubai’s real estate market ripe for investment?


Ahsen Ghufran KhanStill wondering about making that investment in Dubai property sector but not certain what the future holds for the emirate’s real estate market? To be honest, risks accompanied by investments are always real and they are present everywhere. But as they say, with higher risks come higher rewards.

A quick glance and you may notice prices in Dubai’s real estate sector heading downwards. But a deeper look will reveal a market that is strengthening, offering rental yields as high as 8%-10% in certain residential unit categories and driven by genuine demand after successful curbing of property flippers.

Prudent real estate investors are very well aware of the fact that prices have already bottomed out so the only way that remains is up. What could be better than investing in a high potential real estate property when it is at its cheapest? Talking about affordability, buying properties in the emirate is very easy these days. Due to rapidly increasing rents, many tenants are aiming at becoming property owners and to facilitate them, property developers are offering highly flexible payment plans. Some of these even resemble rent-to-own schemes. What’s more? If you buy a property worth AED 1 million in Dubai, you qualify for a residency visa in the shopping capital of the world. Convenient?

Thanks to Dubai’s tax-free environment and duty-free trading zones, it’s an excellent place for traders, businesses and start-ups. This means that the emirate produces hundreds of jobs every year and welcomes a steady stream of expatriates looking to benefit from these lucrative working options. These expats are always looking for accommodations to rent and this answers all concerns related to residential demand, especially for people who aim at buying properties in Dubai to place them on rent. After all, it’s not a bad idea. According to UAE property portal Bayut.com, there are localities in Dubai where studio apartments earn their owners annual rental yields equalling 10% of the property value.

With high rental yields, there are also prospects of capital appreciation as World Expo 2020 draws nearer. The preparations of this event are in full swing these days and not only the emirate is ramping up its infrastructure, its government is also urging property developers to finish majority of their projects before 2020. If everything goes according to plans, one will see a much more developed Dubai with an array of entertainment options, self-sustaining residential communities and more record breaking towers in just four years’ time.

In a nutshell, Dubai is a safer place to invest in today and lays greater emphasis on value and income. There is good value in the market for sure and with emirate’s new regulatory measures, all your investments are safe.

Author: Ahsen Ghufran Khan 

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