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 . 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