Dubai, one of the fastest growing megacities in the world, is known for its skyscrapers, picturesque tourist destinations, and ultra-modern shopping malls. In addition to various sights, the city offers residential and commercial units. Investors use them to diversify investment portfolios. This article explains why properties in Dubai the UAE are in high demand.
Increasingly burgeoning population
This is a cosmopolitan city with people from more than 200 different countries. According to the local Statistics Center, the population surpassed 3,500,000 people with the help of a post-pandemic migration growth in April 2022.
Population increase is the main goal of the emirate’s government. The goal is to have 5,800,000 people living here by 2040. It is justified by the intention of boosting demand for local real estate.
People from all over the world constantly come here in search of promising jobs and new business opportunities. This results in one of the most significant pros of purchasing a housing unit here. As a rule, they rent housing for a long period of time.
To provide a growing population with a roof over their heads, local real estate developers continue to build new residential complexes. These properties can be extremely profitable assets in the portfolio of any successful investor who is looking for to get a return on their investment.
Constant development and innovation
Which is better to buy a property in a city where you can choose only from secondary housing, or in a city where leading construction companies implement fresh, innovative ideas on a regular basis? It’s a rhetorical question. The answer is obvious. Dubai is on track to become one of the smartest cities in the world.
A significant advantage of owning a home in a fast-growing metropolis is an everlasting opportunity to discover something new. It attracts millions of people who need a temporary accommodation every year.
The innovative ideas initiated by the Dubai government are a clear indication that buying a local house is the right investment decision. The fast development ensures that new shopping malls and roads linking communities to the rest of the city will be constructed near the acquired real estate. This will increase the asset’s value over time.
High rental income
Few people know that rental income in Dubai is significantly higher than in other major world centers. On average, the return rate reaches 10% in the best districts of the city. With a cautious approach, the net return on investments in rental units will be about 5.82%. This makes it the best place for real estate investors.
High level of security
One of the many numerous advantages is the feeling of security that locals can enjoy. Despite the fact that political disturbances happen in several Middle East countries, the UAE remains the most peaceful place.
Al Ameen, an online security service that allows local residents to report cases anonymously and smart police stations are some examples of how the government keeps the city safe. In addition to the latest technological solutions that can stop crime, the emirate pays a lot of attention to law enforcement.
Nobody has heard of thefts and robberies in Dubai.This is one of the main reasons to purchase a local buy-to-invest housing unit. Even if a person leaves their car open in a public place, no one will even try to touch it while they are not around.
According to a survey by the UAE, more than 98% of residents feel safe living and working in the country.
An extensive range of properties
The local accommodation market has a wide range of residential and commercial units. If an investor wants to invest in a residential project, he can choose between villas, apartments, townhouses, and other properties in various configurations and architectural styles. The commercial real estate market offers a huge number of offices, restaurants, hotels, and industrial buildings.
The Investor visa
Buyers who have invested AED 1,000,000 in local real estate may obtain an investor visa. To apply for this special type of long-term resident visa, applicants should make sure that they are not purchasing a mortgaged or off-plan home.
After receiving permission from the Dubai Land Department, the Department of Economic Development will issue a licence to the buyer to trade the acquired property. Then he will be able to apply for a 2-year residence visa at the Immigration Department.
- If an investor invests more than AED 5,000,000 in local real estate, he will have a right to apply for a renewable 5-year In order to renew previously mentioned he should remain the owner of the property.
- A real estate investment worth AED 10,000,000 gives the right for a 10-year visa if the property remains unsold for at least 3 years.
Low housing prices
Local real estate is 30-70% cheaper in comparison with big cities, such as New York and London. Nevertheless, it meets the high quality standards. The first things one sees when choosing residential properties are elite amenities like video surveillance, a swimming pool, a well-equipped gym, and high-speed elevators.
Assistance with buying property in Dubai
The UAE market offers many lucrative investment opportunities. To find the best ROI options, visit the Emirates.Estate official website. You can find the most profitable and high-quality offers on the UAE real estate market in the up-to-date catalog of the company.