Dubai, a city and emirate in the United Arab Emirates is known for its iconic skyline, opulent lifestyle, and record-breaking stats, Dubai has built its reputation as a top investor hub. The city has certainly been put to the test given the unpredictable market conditions the entire world encountered during the global covid-19 outbreak.
Mr. Abdulmalik Kehinde, CEO, Abdul and Properties Limited, outlines some reasons why many investors from Nigeria now prefer to buy choice properties in the sprawling city. According to him, despite all the chaos, the emirate remained resilient throughout, given its successful post-pandemic strategy, as well as social and economic reform, reinforcing its position as one of the most appealing cities for investment opportunities.
The strong recovery was evident in Dubai’s real estate sector, as it remarkably achieved so much, with a record 73.7 per cent growth in the number of investments, as well as a 65.6 per cent rise in the number of investors since 2020. Since real estate still remains one of the most preferred means of building wealth, Dubai has become more lucrative than ever, attracting investors from all over the world. These reasons include:
Higher Returns in Dubai’s Real Estate
Real estate in Dubai offers a high return on investment, significantly higher than those offered in its counterpart cities, like London and New York. Indeed, it’s a rewarding experience as Dubai always has attractive properties in popular areas which offer exceptional returns.
Investing in a Dubai property could potentially generate a high return of investment due to a lack of property taxes. Offering one of the highest returns on property investment, you can expect returns of above 6 per cent, with double digits in key neighborhoods.
Additionally, Dubai property prices are on the rise and generate a significant gain for investors. In fact, according to a recent UBS report, Dubai Property Market is one of the only undervalued markets in the world, compared to major cities like New York, Hong Kong, and Paris. With this in mind, you can easily make a good profit by selling the property, and then reinvesting in the future.
Growing Population
We’re all aware that Dubai is a cosmopolitan city whereby people from over 200 different countries reside in hopes to expand their careers and businesses. Since the population of the city is ever-growing, the demand for properties is increasing accordingly at a rapid pace to accommodate this rise, bringing in more investment opportunities to Dubai.
In fact, Dubai’s population, currently around 3.5million, is projected to nearly double in 20 years, coinciding with the completion of Dubai’s 2040 Urban Master Plan. Despite the covid-19 setback, which resulted in an 8.4 per cent population decrease, the city’s population still managed to bounce back swiftly, with the population currently 100,000 higher than it was in January 2020.
With a fast-growing population thanks to thousands of expats from all over the world relocating to Dubai annually – it’s surely no surprise to see investors flock to the city.
High Standard Of Living
Dubai is globally recognised as one of the best cities to invest in due to its excellent quality of life and world-class infrastructure. With top-quality dining venues, luxurious lifestyle, beautiful beaches, connectivity, and state-of-the-art entertainment and recreational facilities, it’s hard to miss why Dubai is a haven for investors!
In regards to Dubai’s real estate, various developers have a growing inventory, offering stunning properties, increasing in upcoming and desirable areas. Not only that, one of its major strengths is that it’s quite affordable in comparison to some other major cities, meaning there’s something for everyone according to their budget.
Development And Innovation
What helps Dubai’s economy and population grow at tremendous rates, is its state-of-the-art developments and innovation, from the tallest buildings to the largest airports. It’s the ‘City of Superlatives’, as well as the ‘City of Innovation’, after all!
Dubai is a major hub for technology and business growth, constantly evolving in order to foster an innovation ecosystem. With humanoid robots now serving customers ice cream at ‘Icealice’ in Dubai Festival City Mall, Dubai is a recognised world leader for AI, robotics, and fintech in the region, providing continuous support and manufacturing hubs for innovative companies to create and trial their products.
Balancing environmental, economic, and social sustainability with a future-forward vision, there are constant developments that attract the masses to invest in Dubai, as the innovative city aims to make every aspect of life hassle-free. Therefore, you can always expect something new and exciting, which is one of the biggest benefits of investing in Dubai.
Safety And Security
Dubai’s safety plays a vital role in attracting more expats, and investors, to the emirate. Besides handling the global COVID-19 outbreak successfully, Dubai is known to be one of the safest cities to generally live in as it has a very low crime rate and efficient legal system, thanks to its requisite security measures.
In terms of real estate investment, there’s a strong regulatory framework aimed at protecting an investor’s interests in Dubai. Dubai is also the most transparent and regulated property market in all of the MENA region, further attracting investors as they know their investment is secure.
Additionally, Dubai’s property sector is the only market with the lowest price bubble risk among 25 other global cities, according to UBS’ Global Real Estate Bubble Index, ranking as the only undervalued market.
Tax-free Investment
If you buy a property in Dubai, you don’t have to worry about tax, as the emirate has no annual property tax, income tax, or capital gains tax, making it the best city to invest in real estate. Once a property is purchased, owners will not pay additional or ongoing taxes in the future, only the one-off property transaction and registration fees.
Needless to say, this makes properties in Dubai highly affordable and best of all, lucrative, compared to other major cities, where paying periodic taxes is mandatory.
Though the corporate tax will be introduced, the real estate market has been unaffected, so you can buy a property in Dubai and be rest assured you won’t have to keep paying a portion of your earnings!
Investor-friendly Policies
One of the biggest benefits of investing in a Dubai property is that you can be granted a resident visa based on your property investment in Dubai. This is applicable to foreign nationals who have a minimum investment of AED 1,000,000 for a freehold property in Dubai, given that the property is ready and not under a mortgage.
Since non-UAE citizens are also allowed to fully own property in Dubai without the need for a local partner, the city witnessed a huge surge in construction, attracting foreign investors into the city’s real estate market.
Abdulmalik maintained that these are some of the major factors responsible for the increase in investment by Nigerians in Dubai. The city has evolved into a global metropolis replete with investment opportunities, enticing people from all over the globe. With its innovative planning, impressive infrastructure, and sustainable living, Dubai is geared towards exceptional growth and development, so you can expect your investment to thrive. Those who are thinking about investing in Dubai property can be self-assured that they are on the correct track as the market is looking promising and rebounding strongly. Additionally, Dubai property prices have stabilised, the market has matured, and a new real estate cycle is underway, making this a great time to invest in a Dubai property.
