To invest or not to invest: Dubai’s dilemma in real estate
Readers who spend hours upon 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 surpassed by a future that promises a favorable landscape for 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 defuse these issues and declare the UAE not one of the best, but “the best” place to invest.
For starters, the UAE has consistently shown 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 over 2017).
Due to its strategic position in the global landscape, it offers the Best Investment Opportunities from the Best Real Estate Companies in Dubai. The United Arab Emirates served nearly 2.4 billion market traders in 2017 in just five hours according to recent Thomson Reuters reports.
The region is also the third most attractive investment destination for those in infrastructure.
With over a hundred smart city initiatives set to come into effect as part of a plan drawn up for the upcoming EXPO, opportunities for investors abound. Over a thousand government services have already gone smart in 2017.
REITs
REITs or real estate investment funds 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, such as the ENBD REIT’s purchase of The Edge, Uninest and South View School.
Although they only represent a small part of the sector, they are expected to be a great way for small investors to enter the market.
Freedom from freehold ownership
The introduction of the Freehold Property Ordinance in Dubai in 2002 was the first platform that allowed foreigners to buy, sell and lease property.
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 became a global investment hotspot that attracts the best and 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-booming real estate market that grows with its population.
Dubai’s real estate assets have generated a 120% return for investors in the decade since the global financial crisis. The region’s testament is that real estate investment in Dubai Real Estate was second only to investment in the Nasdaq index back then.
During the first quarter of 2017, the Dubai Land Department reported deals worth AED 77 billion (USD 20.9 billion) in the first three months of the year, up from AED 54.7 billion (USD 14,890). million US dollars) from January to March 2016.
Data for 2018 showed a similar trend with transactions during the first three months totaling Dh 58 billion through 13,759 sales. This constitutes 9,092 sales transactions worth approximately Dh19 billion, 3,717 mortgage transactions worth more than Dh30.6 billion and another 950 transactions valued at Dh8.4 billion.
The first quarter also attracted 5,041 foreign investors who carried out more than 5,000 transactions with a total value of more than 10 billion 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.