Some call it the “Silicon Valley” of the Middle East and others name it the dynamic city, we call it “The Hottest Real Estate Market City”, and yes we mean “Dubai”. For the past couple of years, Dubai has been the center of attention to all investors from inside and outside of the region; some even might say that the city is witnessing a period of bliss in its real estate sector.
This boom in the city’s real estate sector is expected to further expand in the future thanks to the upcoming activities the city is planning on launching.
Below, we have rounded up factors that participate in the growth of Dubai’s Real Estate Sector.
1. Expo 2020
Dubai Expo 2020 is expected to be the ultimate attraction for investments from all over the world.
Preparing for the expo, a large number of developers are planning to develop plenty of residential and hotel units to accommodate a large number of the Expo’s visitors which are expected to reach 25 million visitors.
2. Unique location
Dubai is characterized by its strategic location as it lies in extreme proximity to Russia, China and India, the three countries that form the majority of Dubai’s investors.
The city serves as a bridge between the Far East and Europe on which makes it the perfect getaway and investment destination to high profile investors from all the surrounding countries.
3. High rental yields
When compared to other international markets, Dubai rental market is way more profitable than other similar touristic and business destinations.
This is why the growth in the local realty sector is in Dubai’s future. And according to property experts, rental yields are expected to rise from 8% up to 10% for some apartments.
4. Solid Real Estate Laws
Investors need not worry since Dubai real estate laws have been updated to support and protect all types of investment.
At the meantime, Dubai has strict and firm laws that govern land registry as well as buying and renting.
Such solid laws are inviting more investors to invest in the city with no fears whatsoever about their investments.
5. Attractive tourist destination
According to 2015 statistics, Dubai hosted around 78 million passengers. With an attractive nightlife as well as fun activities from shopping and fun adventurous outings to family activities and Cultural activities, Dubai is a city that suits everyone.
This is what drove many developers to build world hotels, residential buildings, malls, retail shops, hence positively affecting the real estate sector in the entire emirate.
6. Flexible Economy
It’s a known fact that Dubai’s economy is diversified and even though oil prices have fallen greatly in the last period, but the city has found alternatives in other types of investments, aka non-oil sector.
Whether it’s infrastructure sector or foreign trade sector, durable banking sector, air transport alternative energy, Dubai has definitely succeeded in establishing a strong and growing economy that doesn’t only depend on oil, which encouraged more investments to be injected in the city.
7. Foreign Ownership
The government is currently on the works of implementing a new law that allows 100% foreign ownership in multiple sector.
This move will encourage more investments to come to the city, especially in the real estate market which will boost the real estate market.
8. Real Market Diversity
The diversity in the real estate market from residential projects to commercial and retail projects is extremely encouraging developers from inside and outside of the emirate to invest in the market by developing real estate projects.
With many nationalities living in Dubai, investment opportunities in the Emirate are doubling by the second.