5 Reasons Why Dubai Real Estate is a Hot Market for Investment
From its glitzy skyscrapers and luxury shopping plazas to an eclectic mix of cultures and warm hospitality, Dubai is one of the most frequented global tourist destinations. But, there are many people who are now vying to own a property in this city of gold. After all, it is also among the hottest real estate markets in the world.
Here are five super reasons why a Dubai-based property should be on your real estate investment agenda:
According to a recent study, the upscale residential properties in Dubai are more pocket-friendly per square metre that Geneva, Tokyo, Mumbai, Hong Kong, London, Paris and New York. Even the lands costs are cheaper than other cities across the world. Of course, it also helps that property prices have fallen in the last three years for you to strike a good bargain. It is estimated that Dubai will witness the addition of more than 1 lakh properties by 2020-21, of which around 30-40% will be affordable.
High Rental Returns
While the rental returns on Dubai real estate property have remained consistent last year, they are still anywhere between 7-9%. This percentage of yield is much higher than 3-4% in London, Tokyo, Sydney and other offshore real estate markets. The returns are even better in emerging communities where the cost of maintenance is relatively lower as the buildings are new.
Residency Visa for Property Investors
Property investment in Dubai makes you eligible for UAE residency visa! Dubai Land Department issues a two-year renewable Property Investor Visa for buying residential properties (commercial properties are not included) in Dubai. This means that you are entitled to obtain UAE driving license and an Emirates ID as well as right to sponsor the family. However, the property must be mortgage-free, habitable (in good condition and suitable to live) and its value must be at last Dh 1 million as per the purchase price on the title deed.
No Property Tax
Yes, this is true! The property investors in Dubai are not liable to pay any tax on income from rent as well as the sale of the property. Other than the one-time direct tax levied at the time of sale and municipality tax, there are no other annual property taxes.
While Dubai’s economy was primarily driven by oil reserves, it is now moving towards service and knowledge-based sectors. The government has established Ministry of Happiness to provide work and lifestyle positivity to its citizens. The infrastructure development is at an all-time high. There is no doubt that Dubai is striving towards being a prosperous nation. Given that Dubai too has RERA in place to monitor and regulate the property market, it further adds to the attractiveness of property investment. All these factors combined are likely to yield a good capital appreciation to property owners.
If you are planning to buy a property in Dubai, the time is now.