When it comes to investment growth and income, there is hardly any real estate investment you can make that is more lucrative than a purchase in Dubai. When thinking of investing in luxury real estate, many American cities will come to mind as great deals and good places to live, but if the property is part of an investment portfolio, Dubai is the top performing investment location. Dubai has established itself as a globally recognized trading and transportation centre, a centre of commerce for the East. Recently Dubai has emerged as a picture of modern architecture, combining intriguing designs with definite Islamic influences with aggressively modern designs. A modern city filled with wealth and forward thinking people, Dubai is the perfect place for high end luxury real estate investing.
Dubai doesn't just look like a good city for a real estate investment, the investment numbers that boast of excellent growth history, according to a review made by Douglas Elliman and Knight Frank that compared several cities and their investment growth from 2010 to 2014. Assuming a property was purchased in 2010 for 1 million, that same property would be valued at approximately 1.63 million by the second quarter of 2014. That's a growth of 23% in the second year of the investment and 73% in the third year of the investment. These numbers out perform all other contenders for luxury real estate including Hong Kong, New York and London which given the same investment and time would see their respective property values at 1.16 million, 1.22 million and 1.54 million respectively. Dubai was the clear winner by a fair margin and is still a viable investment market.
Besides the wealth in the city, why is it such an attractive investment location? First, Dubai is a tax free city without income or capital gain tax. Tourism remains a very strong and lucrative industry in Dubai, attracting all manner of prospective tenants. The weather, as well, is very moderate and attractive to those that wish to visit or live in Dubai. For those wishing to live in Dubai, the crime rate is very low making it a very safe city to live and work. As a city, it is a very attractive place to live and work, while those investing in rental properties will enjoy the rental income along with a healthy increase to their equity in a short amount of time. Five year turn around, in the booming housing markets of Dubai, is an attractive return on investment.
Using a real estate company when purchasing investment property is always a good idea. This is extra true when purchasing abroad in unfamiliar markets. The local expertise and experience that a Real Estate company can bring to the table saves more than just time; it can save you from a bad investment. Allowing the company to do the legwork in finding a suitable property that fits expected criteria frees up your time and attention. Focusing on a shortlist of available properties that the Real Estate Company will provide allows you to pick the best property without having to sort through properties that may not be the best investment opportunities. Once the deal is closed, agents can act as your 'feet on the ground' with cleaning up details if you are an international buyer. All in all the benefits associated with hiring a Real Estate company far outweigh the associated costs.Dubai is a beautiful, thriving, safe and modern city that has long been seen as the hub of commerce and trade in the middle east. Significant historical rates of ROI and an abundance of wealth make purchasing a revenue property a reasonable investment endeavour that can offer a significant payoff for those willing to invest.
If you want to buy or rent a property in Dubai, do not hesitate to contact us!
Engel & Völkers Dubai
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