- Consistent Economic Growth
Consistent growth and a stable economy make Dubai a great place for real estate investment. Since 2010, Dubai’s GDP has almost doubled. The growing economy has also diversified, as Dubai has reduced its dependence on oil revenue to approximately 5 percent of its economy.
- Consistent Population Growth
Alongside the economy, the population also continues to grow. In 2016, Dubai’s population topped 2.5 million, up from over 1.5 million in 2008. If population growth remains the same, by 2020 the overall population will reach 3 million, an average growth rate of 4.7%. More people leads to a need for more housing and commercial spaces. Also, Dubai’s tourism boom is further driving the development of real estate projects and hotels. The influx of new residents and a growing number of tourists makes Dubai real estate a solid investment.
- Better ROI
Dubai offers higher rental returns for a better ROI (return on investment) than many of the world’s other major cities. Investors in some properties have seen up to an average 10% yield. However while not every property offers an ROI as high as 10%, investors can expect a rental yield of at least 5%, better than either New York, London, Hong Kong or Singapore.
- No Annual Property Taxes
Hong Kong property owners pay up to 15% in annual property tax. In London and New York, owners pay a little more than 2%. It may be hard for some investors to believe, but property owners in Dubai pay 0% property taxes on real estate. Once you purchase a property and have paid the registration fees, there are no additional, ongoing taxes. Tax-free investment means that investors can automatically make more money on real estate investments.
- Low Acquisition Cost
Buying property in Dubai is much less expensive than it is in places like New York or London. The average cost of property acquisition in Dubai is a fraction of what it is in most other major cities around the world. An investor can expect to pay anywhere from 30% to 70% less for comparable properties in Dubai.
These are only a few signs that you should invest in Dubai real estate. To learn more about why purchasing property in Dubai is a great investment, contact Elite or at 045013656. One of our representatives will contact you within 48 hours.