Why you should invest in Dubai’s real estate: 11 advantages!
Amidst global economic uncertainty, Dubai’s real estate market stands out as a haven. It has shown remarkable resilience and growth post-pandemic, ranking among the top performers globally in prime residential assets.
In 2023, Dubai witnessed its strongest-ever performance, recording 1.6 million transactions valued at Dhs634 billion, marking a significant 16.9% increase from 2022. Notably, 42% of new investors hailed from outside the city, reflecting its global appeal.
Investing in Dubai offers several advantages, including diverse opportunities in new developments across the city:
- Prime residential property market:
Dubai’s prime residential properties saw a significant 17.4% increase in value in 2023, surpassing the global average growth of 2.2%.
- Competitive pricing
With prices at $750 per square foot, Dubai remains affordable compared to other cities, attracting both local and international investors.
- Forecasted growth
Experts predict a continued growth rate of 4-5.9% for Dubai’s prime residential market in 2024, maintaining its appeal as an investment destination.
- Rental price increase
Rental prices in Dubai surged by nearly 10% in 2023, offering steady income for property investors.
- High rental yields
Dubai boasts impressive rental yields of 4.8%, exceeding the global average of 3.1%, offering investors attractive returns on their rental properties.
- Low transaction costs
Dubai offers favorable transaction costs, making real estate investments more profitable. The cost associated with buying, holding, and selling property in Dubai is among the lowest globally, amounting to less than 10% of the property purchase price.
- Stable economic environment
Dubai’s diverse economy and investor-friendly policies provide stability for real estate investments. Additionally, fast-tracked urban development projects and investor-friendly policies further bolster confidence in the market.
- Strategic location
Situated as a crossroads between East and West, Dubai’s strategic location enhances its value as a business hub. This geographic advantage enhances the long-term value proposition of real estate investments in the city.
- Government reforms
Ongoing govt reforms, such as visa changes, attract more investors to Dubai’s property market, contribute to sustained demand in the real estate sector. Initiatives such as long-term residency visas and simplified visa processes further incentivize investment in Dubai’s property market.
- Forecasted top performer
Dubai is expected to remain a top performer in 2024, with further price growth anticipated, with prices forecasted to grow by an additional 4 per cent to 5.9 per cent in the coming year.
- Perfect storm of advantages
Dubai’s real estate market offers robust growth and high rental returns, making it a haven amidst global economic uncertainty.
