Buying real estate in the Dubai property market is something investors should be considering during the current climate.
Numerous indications show the most populous United Arab Emirates city, famed for its more liberal and glamourous lifestyle, is on the verge of major investment and expected property price increases through 2017.
As Dubai has many things going for it right now, we’ve taken a look at why a property investment there is becoming an attractive prospect for international buyers.
Political and Social Stability
It’s perhaps natural to think the Middle Eastern region is constantly under threat of political upheaval and even war. However, there’s no such concern for the UAE, a country that has more relaxed laws and a general respect for other cultures. This has allowed Dubai to prosper as a tourist destination during the 21st century.
Although an Islamic country, the laws are beginning to relax for non-Muslims in the city. For example, residents can drink alcohol at home and in certain venues with an alcohol license. Likewise, a recently passed law allows non-Muslim expats to include property in their will should the worst happen.
Of course, many expats are also drawn to Dubai because there is no enforced federal income tax legislation within the United Arab Emirates. In terms of a property purchase, there’s even more good news for investors with no VAT or capital gains taxes to contend with, along with no annual property charges either.
Dubai was chosen as hosts of the Universal Exposition, or Expo for short, to be held in 2020. It involves the staging of a majestic public exhibition showcasing a wide range of events, attracting a staggering 20 million visitors in the process.
An Oxford Economics report declared that the impact of hosting the exposition would be extremely beneficial to the economy. Nearly 300,000 jobs will be created in the build-up to the event, with a lasting legacy to boost the whole region.
For property investors, acquiring a Dubai property right now is recommended before the Expo 2020 boom starts to hit.
Shrewd investors take advantage of favourable buying opportunities in the market and, right now, Dubai is one of them. Current property values are on the relatively low side after recent drops in price, but are expected to rise as we approach 2020.
Another bonus is that rental prices have remained the same, thus improving yields significantly for landlords. Average rental yields can range from 7-10% per annum, far higher than the average for other major cities around the world.
Because of this, it’s favourable to consider buying as opposed to renting. In the current climate, it may actually be less expensive to obtain a mortgage than pay rent in the long term. Rents are also expected to increase as Expo 2020 draws closer and wealthy financiers come to town.
Property in Dubai offers more value for buyers than other prominent cities around the world. A report by estate agents Knight Frank shows that you’ll get around seven times more space in square metres with a Dubai property purchase than you would in London, Monaco and Hong Kong.
Numerous experts believe the Dubai property market is maturing, mainly because prices have remained stable since mid-2014. This shows confidence is returning and will soon attract investors looking to take advantage of these long-term growth opportunities within the city.
If you’d like to know more about investing in Dubai, get in touch with us today.
If you’d rather stick with investing in the UK but are worried about the current market climate, you might be interested in why there’s no prospect of a housing market crash.