The Dubai property market has staged a remarkable recovery after it suffered a brief setback due to the COVID-19 pandemic. The year 2021 peaked at $41.1 billion in terms of sales value after a 74.77 per cent rise as it broke a 12-year record.
Although a successful vaccination drive and hosting the global fair ‘Expo 2020’ are major reasons that are accredited to this strong recovery, it’s the return of foreign investors, which has played a major role in the market finding its feet.
Dubai Property Market – Attracting Investors from Across the Globe
According to a report, Saudi Arabia, Oman, Kuwait, and Bahrain are the top GCC countries that invest in the Dubai real estate sector. Among non-Arab countries, India, Pakistan, China, and the UK occupy the prominent spots. Furthermore, Israeli investors are also foraying into the Dubai property market and making significant investments.
Let’s delve deeper and find out what makes foreign investors keep coming back to the Dubai property market:
1. Visa Reforms
In a historic move, Dubai introduced long-term, renewable visas for investors and entrepreneurs in 2019. These visa reforms greatly helped to attract the attention of investors who saw the potential in the market. Earlier, they were only allowed to stay in the emirate for a particular time period after which, they had to leave it. However, now, once they have obtained this visa, they can stay in Dubai for a long time, and apply for the visa renewal as it reaches its expiry.
If you intend to apply for an investors visa in Dubai, it is important to go through the eligibility criteria or pre-requisites and ensure you meet them. Only when you fulfil all the conditions, you will be able to get this visa.
2. Expatriate-friendly Policies
Just like visa reforms, policies in Dubai also witnessed a major shift in recent years. They have become more expatriate friendly. For example, the requirement to have a local sponsor to start a business is abolished. This means setting up a business has become easier in Dubai. Similarly, several amendments have been made in other areas, such as civil transactions, criminal procedure laws, the penal code, personal status, etc. in a bid to make the emirate more friendly for expats.
3. A Safe Environment for Investors
Real estate investments always come with a certain element of risk. The same is the case in Dubai. However, due to strict enforcement of laws in this region, the chances of getting scammed are relatively fewer. This makes the Dubai property market safe for investors. Still, it is recommended to do your due diligence and gather as much data as you can about the project before making an investment.
For example, if it’s an off-plan project, ensure it is registered with DLD and has a valid escrow account. Similarly, check and verify all the documents for ready properties before buying them.
4. High Returns
The biggest draw for real estate investors, anywhere in the world, is high returns. And Dubai scores high in this department. The Dubai property market is ranked among the top real estate segments in the world as it offers high returns to investors.
This, however, majorly depends on the area and property type you have selected. For instance, Jumeirah Village Circle, Business Bay, and Jumeirah Lake Towers offer an ROI of 6.29 per cent, 5.46 per cent, and 6.70 per cent, respectively in the affordable apartments category.
For luxury apartments, Dubai Marina (5.64 per cent), Downtown Dubai (4.87 per cent), and Palm Jumeirah (4.70 per cent) offer substantial returns. When it comes to affordable villas, investors gain the maximum value from DAMAC Hills 2, Dubailand, and JVC, as these areas offer ROI of 5.36 per cent, 5.80 per cent, and 5.90 per cent, respectively. In the luxury villas category, Arabian Ranches 2 offers the highest ROI of 5.28 per cent, while investment in Palm Jumeirah can produce 5.16 per cent.
5. Economic Stability
Even if the real estate sector produces high returns, investors are reluctant when it comes to buying property in such a city/country because economic instability increases the element of the risk. However, you can safely buy property in Dubai as an investment since the emirate’s economy is well-positioned for further growth. Apart from real estate, tourism, e-commerce, manufacturing, and trade are some major factors that are contributing to long-term, sustainable economic stability.
In all, the Dubai property market is ripe for investment, and the strong recovery is a strong indication for the same. So, if you have been planning to test waters by investing in a foreign land, choose Dubai. For further information, latest insights, and up-to-date property listings, visit Zoom Property.
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