When investing in real estate, there are two main types of location that promise a profitable return. Either you buy property in an already established locale, rich with current investments and showing a long future of continued return on your investment, or you find a raw and untapped area on the cusp of being discovered. When it comes to the Dubai property market, both of these scenarios emerge. With a horizon peppered with both glittering skyscrapers, remarkable feats of engineering but also plenty of room for new investment, entering the real estate market in Dubai has many potential rewards.
Positive investment history
Thorough market research is crucial when you’re purchasing a property, especially if it’s as an investment. In reviewing the state of property value appreciation in Dubai, the results have shown an astonishing price increase. According to a 2014 review, the values of properties purchased in 2010 rose 73 % within three years.
With the Expo 2020 on the horizon, Dubai’s tourism industry isn’t looking to slow down any time soon. The city attracted a record of 14.9 million overnight visitors in 2016, and aims to welcome 25 million tourists annually by 2020. The Dubai International Airport is now the busiest in the world and has become a travel hub for businesses operating across Asia and the Middle East.
Of course, there’s more to this city than its tourism industry. Dubai has the longest automated Metro network in the world as well as plenty of lifestyle perks, such as luxury shopping malls, golden beaches and an attractive climate. This metropolis has become the second most attractive property market for high-earners looking to invest; a popularity that saw foreign investments approach Dh44 billion in 2016 with interest coming from people of 136 different nationalities.
A growing property hotspot
Of course, it’s impossible to talk about the benefits of the Dubai property market without mentioning tax incentives. In Dubai, there are no transaction taxes on property sales and rental income is equally tax-free, which are huge draws for those looking to expand their investment portfolio. With that in mind it’s not hard to fathom why real estate transactions saw a 45 % spike in the first quarter of 2017 when compared to the previous year. Right now, there are around 4,000 active projects worth over $300 billion in Dubai, showing the city’s solid growth in the construction sector.
The benefits of professional help
If this is your first foray into overseas real estate investment, or even just into the Dubai property market, it’s a good idea to enlist the help of a professional agent. Local experts, like those we have at Engel & Völkers, have in-depth knowledge about the state of the market and what areas are likely to become property hotspots in the near future. If you’re not planning on relocating to Dubai, your local property expert will also act as your eyes and ears on the ground and will ensure that all your paperwork is arranged correctly.
Dubai is already a thriving market, but it’s also a melting pot that’s only going to get hotter over the next five years. Now is the time to stick your oar in the Dubai property waters – find out more about our Dubai team or browse our current Dubai property investment opportunities.