Why Invest in Dubai?
With audacious architecture and spectacular skylines, it is easy to understand why Dubai remains the fastest growing city in the world and the tourism hub of the United Arab Emirates. Growth here has been expediential, having been transformed from a tiny fishing village to a major trading hub in less than 30 years.
Here are eight reasons why now is the time to invest in Dubai;
- World Expo 2020
Dubai is hosting the next World Expo in 2020 and with visitor numbers expected to reach 25 million, this will help to boost rental demand and deliver a strong return on investment for investors. Additionally, when Milan hosted Expo 2015, visitor numbers topped 20 million during it’s 6-month duration.
Dubai is the 4th most visited city in the world and is home to world’s biggest dancing fountain; highest building (Burj Khalifa); first and only 7-star hotel (the Burj al-Arab) and the largest man-made islands (the Palm Islands) so it’s no wonder, Dubai’s tourism industry is booming. Plus, the number of tourists visiting Dubai will increase to more than 20 million a year by 2020 (Go-Gulf, 2015).
Dubai’s economy has little to no dependence on oil and has instead diversified into aviation, tourism, trade, financial services and other industries. As other UAE countries have suffered due to the recent oil crises, Dubai’s economy has flourished, with growth expected to increase by 3.1 per cent in 2017 (Economic Development Committee, 2017).
- Property Prices
Property prices in Dubai are at their lowest point since 2014 (Property Finder, 2017) which means investors can achieve a better-value option investing here compared to other markets. Subsequently, the property market in Dubai is already bottoming out which means there will be no further declines and investors’ trust level is at its highest in the emirate’s property sector (Dubai Real Estate Institute, 2017)
Population growth is one of the greatest gains of investing in Dubai with people from all over the globe moving here. By 2020, the overall population will reach 3 million with people from more than 200 different countries. As a property investor, you can take advantage of this population growth and benefit from increasing demand.
Dubai is one of the only cities in the world which does not impose income taxes on companies or individuals. Additionally, there are no annual property taxes unlike other cities like Hong Kong, London & New York (15%, 2.33% & 2.22%) so whether you’re buying a residential space, retail unit or even office space then no tax is placed upon you regardless of your nationality (Mansion Global, 2017).
Dubai is well on it’s way to becoming the smartest city in the world and the Dubai Government continues to invest in it’s infrastructure. Some of Dubai’s top projects include Deira Islands; a $150 million development dedicated to hotels and resorts, MBR City – District One; a $10 billion city which will include the world’s largest artificial beach and Bluewater Island; a $1.6 billion visitor hotspot which will pull in more than 3 million guests every year (Emirates 24/7, 2017).
Finally, Dubai benefits from a higher rental return compared to other major cities in the world. The average rental yield in Dubai in 2016 was 7.4% whilst New York generated 4% and Hong Kong generated only 3.4% (Reidin-GCP, 2017) so this makes Dubai the perfect destination for property investors. Plus, when annual property taxes are factored in, the yields in Dubai are even more impressive.
With Dubai’s innovation and commitment to it’s infrastructure and citizens, an investment in to Dubai property is perfect for those seeking a healthy return on their capital.