Global management consulting firm, AT Kearney,
recently ranked Dubai as the most ‘global city’ within the Gulf. The report
also affirmed Dubai as the city with the highest growth potential in the
region.1 It’s no wonder investors seek to be part of its growth, especially
within the real estate market. Analysts estimate that Dubai’s irresistible
appeal of a safe, peaceful and modern lifestyle is bound to help the emirate
record property sales over AED 292 billion in 2017. In fact, in the first 15
days of this year, it already witnessed sales of over AED 12 billion – with the
help of increased interest from countries such as India and China.2
But, why exactly is Dubai realty a popular
choice for Indian and Chinese investors? Here are few reasons that show us why
they favour Dubai’s real estate market.
Government policies in Dubai
Dubai offers a fairly straight forward,
hassle-free process to purchasing property. There are no special permits or
lengthy paperwork requirements to make a successful transaction – in fact it’s
very easy to invest in property in comparison to other parts of the world.
Dubai’s market stability
A safe, viable and profitable business environment is key to
pulling international investors. As market turbulences are a frequent affair in
other parts of the world, Dubai offers investors a friendly environment in
comparison. It’s the fastest growing economy in the world with a massive influx
of tourists from across the globe. Apart from that, Expo 2020 is another
compelling reason to invest in Dubai . Recently the Dubai Expo 2020 announced
construction contracts worth 11 billion in 2017, proving its move towards
making the mega event a resounding success and reinforced expectations of
growth.
Booming tourism sector
With
14.9 million overnight visitors recorded in 2016, Dubai is a world-class
tourist destination and the fourth most visited city in the world. The growth
of Dubai’s tourism, even through market fluctuations, validates its ability to
adapt. Also, for a memorable experience, Dubai offers luxury malls, man-made
islands and extraordinary hotels to its guests. Entertainment and hospitality
sectors flourish as investors have poured in money for an unforgettable tourist
experience. In 2016, Chinese visitors increased by 20%, with 540,000 tourists
visiting Dubai and for the first time crossing the half million mark. Visitors
from South Asia grew by 13% mainly led by tourists from India.
Higher rental yields
A steady market and quality tourist experience
makes Dubai a premier destination for return on investment. It offers high
rental returns, which attracts a significant amount of international investors.
According to property portal, Bayut.com, Dubai’s rental yields can range from
anywhere from 8% to 10%. As property prices are lower than other international
markets and with a close proximity to Asia, investors from India and China
possess a key advantage in making money from renting out property.
Dubai has established itself as an obvious
choice for anyone looking to invest in realty, with many Asian countries
seizing the opportunity to boost their investments in Dubai’s flourishing real
estate sector.
Sources: 1: Gulf News 2: Khaleej Times 3: The
National 4: Emirates 24/7
