According to the Dubai Land Department (DLD), there were 27,642 real estate transactions in Dubai worth Dh111 billion during the first six months of the year. Some 9,935 foreign investors accounted for 11,889 transactions worth more than Dh21 billion.
These numbers testify to the strength of Dubai’s property market, presenting fantastic opportunities for seasoned and green investors alike. Here are the top six reasons why Dubai continues to attract investments from all over the world.
Relaxed visa rules
Purchasing a property worth at least Dh1 million now allows the investor to apply for a residency permit. In May, the country implemented a law that allows 100 per cent foreign ownership of companies, followed by the introduction of a 10-year residency visa for investors and specialists.
Dubai offers an average yield of 7 per cent, better than the average yield in international property markets such as Hong Kong (3 per cent) and Singapore (4 per cent).
Regulatory framework and transparency
Dubai’s real estate market is one of the best-regulated in the GCC with the government having adopted several measures such as the escrow regulation, rental cap, rental increase calculator, and a rental dispute settlement centre.
The non-oil sectors generate 70 per cent of the UAE’s GDP; this is expected to reach 80 per cent by 2021. Dubai’s non-oil sector contribution has already reached 95 per cent.
The UAE remains politically stable due to its visionary leadership that works towards development in economic, social, cultural, environmental and political domains.
Dubai is a leading multimodal transport hub. Catering to 8.2 million passengers per year, Dubai International Airport is among the world’s busiest.
Jenny Weidling is manager, research and advisory, at Asteco. The views expressed here are her own.