Readers who spend hours and hours searching for an answer to Dubai Real Estate Investing dilemmas are familiar with its challenges. The United Arab Emirates sits on the coast of the Arabian Gulf with a rich history interspersed with trade, oil, industry and property.
This history is overtaken by a future that promises a landscape conducive to expansion and investment. But Dubai Real Estate Investing’s dilemma in this region has raised many questions about its viability. The time has come to put these issues to rest and declare the UAE not one of the best, but “the best” place to invest.
For starters, the UAE has consistently demonstrated its prowess as an investment destination by winning the title of the 13th most promising domestic economy for investment in 2017-19. The region is expected to attract more than $1.8 trillion in global investment in 2018 (a 5% increase from 2017).
Due to its strategic position in the global landscape, it offers the Best Investment Opportunities of the Best Real Estate Companies in Dubai. The United Arab Emirates served almost 2.4 billion market traders in 2017 in just five hours according to recent reports from Thomson Reuters.
The region is also the third most attractive investment destination for those in infrastructure.
With over a hundred smart city initiatives due to come into effect as part of a plan drawn up for the next EXPO, opportunities abound for investors. More than a thousand government services have already become smart in 2017.
REITs
REITs or real estate investment trusts in the United Arab Emirates are gaining more and more common ground. The country’s REIT sector grew considerably in 2017 with a series of high-profile acquisitions, including ENBD REIT’s purchase of The Edge, Uninest and South View School.
While they only represent a small part of the industry, they are expected to be a great way for smaller investors to enter the market.
The freedom of freehold properties
The introduction of the Freehold Property Decree in Dubai in 2002 was the first platform that allowed foreigners to buy, sell and lease properties.
The Decree helped launch multiple projects such as the ‘New Dubai’ area comprising Dubai Marina, Jumeirah Lake Towers and Emirates Living.
This helped promote the growth of construction, architecture, engineering, and other real estate services. Over time, Dubai has become a global investment hotspot that attracts the best and the brightest.
High return on investment (ROI)
The ultimate purpose of any investment is to get more for your money. The United Arab Emirates dominates an ever-thriving real estate market that grows with its population.
Dubai real estate assets have generated a 120% return for investors in the decade since the global financial crisis. The testament to the region is that real estate investment in Dubai Real Estate was second only to investment in the Nasdaq index at the time.
During the first quarter of 2017, the Dubai Land Department reported deals worth AED 77 billion ($20.9 billion) in the first three months of the year, compared to AED 54.7 billion ($14.89 billion) for January to March 2016.
Data for 2018 showed a similar trend with transactions in the first three months totaling Dh58bn through 13,759 sales. This constitutes 9,092 sales transactions worth approximately AED19 billion, 3,717 mortgage transactions worth over AED30.6 billion, and a further 950 transactions valued at AED8.4 billion.
The first quarter also attracted 5,041 foreign investors who made more than 5,000 transactions with a total value of more than 10,000 million dirhams.
All these numbers paint a prosperous picture for the real estate sector in the UAE, putting an end to the question of investing or not.