Is this the right time to invest in Dubai real estate market?

golf vita residential towers dubai

There are two types of investors. Short-term, and Long-term. Short-term investors primarily aim to gain from market movement, whereas long-term investors look at the fundamentals and the robustness of the opportunity and its potential for returns over an extended period.

For the short-term investor, timing and current market conditions are of huge significance. They want to get into the market during a bull run, and get out when the market has matured.

In contrast, long-term investors don’t pay attention to the market cycles, and look at what the investment can return on-going, and where they expect to see this in 5,10 or more years and the potential capital gain.

Its therefore only natural for some investors to ask if this is indeed the right time to invest in Dubai real estate market?

Dubai has been a preferred investment destination for both large as well as small investors ever since Dubai opened its doors to foreign investors. Global HNIs (High-Net-worth-Individuals), European Expats, NRIs (Non-resident Indians), and other global players have been confidently investing on Dubai realty market.

A number of events worldwide has fueled the interest of investors from across the globe into Dubai’s property market. And this continues to grow. The UK’s exit from the European Union has also helped bring global investors to Dubai. In addition, Dubai realty market is a darling of Arabs from both, GCC and non-GCC countries.

IN response to the growing demand for investment opportunities in Dubai, the Government of Dubai is also taking steps to make the process more convenient, and increasingly charming for the investors.

With all this backdrop, we have the Dubai World Expo 2020 coming up in October 2020. For the 25million expected visitors, the demand for accommodation facilities is mind-boggling. And that is driving the prices upwards and is likely to continue well into 2021.

Why do global investors prefer Dubai compared to other investment destinations?

  • Dubai is on top among other cities across the globe when it comes to a better ROI in realty sector. The city is better than Zurich, London, Geneva and New York.
  • Dubai real estate sector is expected to contribute around USD 33 billion by 2020 towards the growth of Dubai. This shows how strong is the real estate market of Dubai.
  • Dubai offers a better value on a dollars-per-square-foot basis, if you compare it to other urban and semi-urban locations around the world.
  • You will get rental yields between 5% to 9% in the residential sector as income & in commercial you can get about 7% to 10% of income, this is where we are specializing.
  • The UAE government offers various benefits to investors to encourage more investment.
  • Dubai is one of the safest and most secure investment destinations. It has business-friendly regulations that attract more investors across the globe.

Future of Dubai realty market

At the current scenario, realty market of Dubai looks very promising. We can expect a long-term, positive growth. The current year will be stable. Property prices will inch up ahead of EXPO 2020. The current price levels are very attractive for investors. Companies and individuals who take the first entry will benefit from the improved growth. Developers are giving attractive payment plans and other benefits to investors which are lucrative and add more returns on the investments. In a nutshell, It is a good time to buy properties in Dubai.

Picture credit: Photo by Aleksandar Pasaric from Pexels

Comments are closed.