United Arab Emirates
United Arab Emirates (UAE) is a federation of seven Emirates: Abu Dhabi (serve as the capital of the federation), Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. Each of the UAE operates as a sovereign constitutional monarchy.
The Emirate of Dubai is situated at the Eastern coast of the Arabian Peninsula, at the southwest corner of the Arabian Gulf and it is the second-largest emirate of the UAE with a population reaching 2.88 million (Dubai population 2020 estimation).
Luxurious, modern, and wealthy are few words that may describe Dubai. Dubai is a city that uniquely and successfully blends the characteristics of a futuristic metropolis – timeless flexibility, Arabian strict and discipline style.
Dubai is among the most popular business hubs of the world and in fact, many entrepreneurs are considering it as the international financial center of the Middle East. It has a fast-growing economy; modern infrastructure and it is one of the most technologically advanced sovereign entities and cities of the area.
Moreover, Dubai successfully combines multi-cultures and offers an enhanced range of business opportunities to individuals and companies. As a matter of fact, it is a favorable jurisdiction for expanding offshore businesses.
According to the World Bank’s Ease of Doing Business Index, Dubai was ranked at the 11th position due to its favorable tax regime and straightforward incorporation procedures.
In addition, Dubai is a well-known destination for luxurious travel, leisure, and business due to its sunny weather, desert, hospitality, safety, skyscrapers, beaches, malls, rich culture, business opportunities, and many more.
According to the UAE Central Bank’s initial estimates, the overall GDP of the federation had a 2.3% increase in 2019, overcoming the growth of 2018 by 0.6%. This growth is primarily attributed to the expansion of the hydrocarbon sector, which is expected to grow further, in the near future.
Moreover, the UAE Central Bank stated that the other sectors had a relative growth as well in 2019. In 2020, according to Oxford’s Economics the UAE’s GDP is expected to record a 2.2% growth and a 0.1% reduction in 2021.
Overseas Investors Benefits
One of the most common questions that international buyers ask is: “Is purchasing properties in Dubai a smart idea?”. The UAE federation was named the best nation in the world in 2019, according to the statement released by local authorities. Overseas buyers don’t have to think about their investment protection when purchasing properties, due to the city’s safe environment.
In addition, although VAT has been implemented, it does not extend to the rental income of residential owners. Therefore, this tax-free income gain is an additional advantage for purchasing property in Dubai as an overseas investor. Furthermore, Dubai remains one of the topmost cities to visit, live in, and work, thus, adding to properties a strong investment potential value.
Dubai Real Estate Market
Affordable prices and residential supply are some of the reasons that place Dubai among the major players of the worldwide Real Estate market.
Nowadays, Dubai Real Estate Market consists of competitive property rates and convenient payment options. The reason for this is the steadily increasing supply of available properties with different distinctive characteristics that can satisfy investors’ needs and sense of taste.
The residential structures in Dubai are mostly following the concept of building communities. Communities are able to satisfy all the needs of their residents, with the simultaneous creation of community schools, shopping malls, restaurants, etc. Consequently, when investors are searching for residential units in Dubai, they view very well-established residential communities. Therefore, investors can form a clear understanding of the property value since they can view the potentials of the community/neighbor.
This practice has added a great amount of confidence to investors since it diminishes the factors of speculations of how’s and why’s that are observed in other real estate markets, with no clear structures.
Moreover, investors can calculate the location value and performance with the use of market indicators that specify exactly what to expect in terms of investment return.
In the Real Estate Market, it is widely accepted that location is one of the most important factors that buyers look at before purchasing. If the location is prime, for example in Dubai City, then this may indicate that the specific real estate property will perform well, as time goes by. Certainly, there are other characteristics that investors should take into accounts such as property facilities, design of the property, amenities, surrounding areas and etc.
However, it is noteworthy to mention that Dubai has many prime locations that investors are able to view since the design of Dubai’s philosophy is based on the notion that each community must have its own parks, retail stores, dining, schools, etc. Someone may say that each community is an individual city by itself. The potential that exists in this city with its unique and well-designed neighborhoods, as well as the economic growth that has been experiencing, are some of the key incentives for investing in Dubai’s real estate market.
There are several examples of well-integrated communities such as Jumeirah Village Circle (JVC), Dubai Sports City, Dubai Marina, Palm Jumeirah, etc.
Although the location is a significant element to consider when investing, however, investors should also familiarize themselves with developers’ current and potential projects and reputation, examine the design of the community, as well as acquire knowledge for the facilities available and the surrounding area’s potentials and amenities. If all the indicators mentioned above are in a good place, then investors can be assured that their property will retain its value through time and will have a rent return as well as capital appreciation in case of sale.
Consequently, when an investor is thinking of buying a property in Dubai, the investor has the option of selecting from a wide and diverse property portfolio that conforms to various preferences and budgets.
Dubai Forecast in Real Estate Properties
Dubai’s real estate outlook is extremely positive since the region has many potentials to further grow and develop. The real estate market of Dubai has an established position on the world map and is among the strong financial markets that can be compared with London, Hong Kong, and New York. Finally, the expansions and advancements that will take place on Dubai Metro, Expo2020, and Al Maktoum International Airport will further enhance the real estate market and add a positive impact in the years to come.
- Posted by EkAdmin
- On March 5, 2021
- 0 Comment