The Evolution of Dubai Real Estate

The Evolution of Real estate in Dubai since last 10 years.

Have you been looking to make a real investment that lasts longer than any other investment and as to where ?

Research says - Real estate investment tops the list. And so does Dubai in the real estate market.

What are the benefits of buying a property in Dubai?

Which are the best locations that you should consider investing in Dubai?

Before we answer your many such queries, we believe that you must have an idea as to how and what Dubai is made up of and how the real estate market has evolved over the years in Dubai.


Real estate Dubai

When it comes to real estate, there really is no city quite like Dubai, which is a heaven for property investors. The emirate has a plethora of cosmopolitan projects that are very futuristic and builds up a whole new excitement, for buyers to choose from. 


One problem with the information available on the internet about Dubai's real estate market is that, it becomes outdated very quickly. That is because, Dubai's government takes pride in being a government that is faster and much more efficient than the other private sectors, hence things keep changing and the current or updated market value can never be estimated accurately.


QUICK PEEK INTO THE HISTORY OF DUBAI REAL ESTATE

In 2002, The Crown Prince of Dubai made a commitment to allow foreign nationals to own a property freehold within the Emirate. This was followed in 2006 with the publication of the lands law allowing foreign nationals the right to register their freehold property. Real estate investment is a recognized long-term investment in Dubai, and the most populated city in the UAE other than Abu Dhabi has become a hub for property investors since 2002. The beginning of tourism and services took charge with a grand orientation which led the economy towards a huge Real Estate Boom and the result was an obvious appreciation in the property prices from the early 2004 to early quarter of 2006. However by early 2009, the situation had gotten worse since the global economic crisis took a heavy toll on the property prices, values, construction and even employment. The economists differently call Dubai Debt Crisis 2009 as a consequence of the real estate's bubble burst. There forward the Market has seen a rice until 2014 - World's largest mall and indoor theme park, the 48 million square foot Mall of the World project announced and many such projects came into place giving the residence of Dubai a whole new experience of living and hence a change and rice in the property market.

WHERE AND HOW TO INVEST IN DUBAI?

Residential investments in Dubai gain the maximum rental returns and hence are a popular choice among the investors. In 2016 it totaled AED 259 billion with 41,766 deals whereas in 2017 alone the transaction totaled AED 285 billion with 69,000 real estate transactions.

Another outlet for investment in Dubai is investing in the hotel property market. The investor can buy a hotel room and as the room is occupied by tourists, guests, the investor receives rental income regularly. Hotel property investments in Dubai are considered a stable investment choice, as the tourism industry holds a larger share in the country's GDP every year and is only seeing an upward trend. Hotel investment in Dubai is also a fully-managed asset-class. Therefore, the hotel management company is responsible for maintenance, advertising and other day-to-day matters.


Places to invest within Dubai.

Dubai marina -

Best transport - Dubai Metro, Dubai Tramway

Infrastructure  - Jumeirah Beach Residence, The Walk, The Beach, Al Sahab,  Al Majara, Marina Promenade,  Marina Quays,  Park Island,  Dubai Marina Mall.

Education - Emirates International School

Business Bay and Downtown Dubai-

Best transport - Red Line of Dubai Metro

Infrastructure - Bay Square, the Executive Towers, Bay Avenue, Dubai Creek Extension

Barsha Heights (TECOM)-

Best transport - Dubai metro, ASCS transportation for students

Education - Dubai National School, Dubai American Academy, American School of Dubai, Gems World Academy, Al Mawakeb School - Al Barsha

Dubai Sports City-

Best transport - City bus, Metro

Dubai sports city holds an Infrastructure just what its name promises - Dubai International Stadium, Spanish Soccer Schools, ICC Academy Rugby Park, The Els Club Golf Course.

Palm Jumeirah

Best transport - Metro and walk

Infrastructure - The Palm Beach Residencies different projects like the Raffles are being developed which when completed, will certainly boost the demand further for this location. Apart from apartments, the Palm Jumeirah is also famous for its beautiful luxury villas.

By choosing an appropriate real estate of class, an optimal location, and a suitable well known developer, an investor can be rest assured of a fruitful and safe investment in Dubai.


Why invest in Dubai Real estate.

Consistent Development & Innovation

A city like Dubai where something new is always happening is most evidently a center of attraction for masses. Due to which, millions of people come to visit this city every year and may most definitely require a place to stay, why not rent your place?

Dubai is already a home to its tallest building aka Burj Khalifa and now there is going to be another tower taller than the Burj as well. The innovative ideas presented and initiated by the government of Dubai gives a healthy sign that buying property in Dubai would only become the best decision of your life and not otherwise.


Low Acquisition Cost

The low acquisition cost for properties as compared to the other real estate capitals is one of the biggest benefits of buying property in Dubai and cannot be easily ignored. Look at the bar graph below and you will get an idea, as to how cheap it is to acquire a property in Dubai as compared to other developed real estate market capitals around the world.
 
As compared to other real estate capitals around the world, Dubai is much cheaper and yet one of the best among the UAE in the real estate market. Can you not see the difference evidently? Average property prices in Dubai are merely USD 468 /sqft which is 6 times and less than the most expensive city in the list being London.

Higher Rental Return

Did you know? The rental returns in Dubai are much higher as compared to other major real estate capitals of the world. Whereas the best performing areas within Dubai are generating around 10% rental yield on an average. The average rental yield in New York is only up to 3.91%, in London 3.21%, in Singapore 2.83% and in Hong Kong it is not more than 2.82%.

Keeping a lot of aspects into consideration, on a conservative basis, it could be said that the rental return in Dubai may not go less than 5.82% and that makes Dubai ideally the best destination around the globe for the property investors. So if you want to enjoy the benefits of buying property in Dubai, don't forget about the higher rental income that your real estate investment will generate in The emirates of Dubai in UEA.

No Property Tax
Yes! You heard it right, all along.

There is no property tax in Dubai. So, once you have bought a property and have paid the registration fee to the Dubai Land Department, there is no other government tax to be paid against your property in any case.

This benefit alone leaves a tremendous impact on the overall rental yield that would be generated by the property you invest in Dubai. If you were to buy a property in Hong Kong city, you would end up paying up to 15% of annual tax for that property and that of Singapore would be 13%, in London it would be 2.33% and in New York it would go up to be 2.2%. Whereas there will be no tax imposed i.e. - 0% tax imposed for the property purchased in Dubai. This clearly makes the choice even easier to make a property investment in Dubai.