* Dubai has a much better rental yield than other destinations
* Expo 2020 will elevate the emirate’s position in the region
* The city boasts world-class laws and a strong real estate regulatory authority
In the past few years, Dubai has received its fair share of criticism bordering on the belief that Dubai’s real estate market is suffering and recovery is difficult. Nothing can be farther from the truth. Dubai has been enjoying a period of relative bliss in the past few years as far as development activities are concerned.
The kinds of projects that the emirate is planning to launch in the next few years speak volumes about the success of the emirate’s realty sector at present and show positive signs that the successful run will continue well into the future. Here are five reasons to show why Dubai’s realty sector will expand into the future to silence critics saying otherwise.
Expo 2020 – The game changer
Considered one of the most powerful investment magnets in the region, the Expo 2020 is likely to elevate Dubai to a strong financial position in the neighbourhood. Most capital will flow into the emirate’s coffers through business activities happening in the local real estate sector.
Also Read: Dubai real estate: Trump win sends US investors flocking to emirate
The emirate is expecting to receive 25 million tourists for the event. Therefore, more hotels and residential units are being built to accommodate a large number of people who will land in Dubai come 2020. As a result, business activities in the emirate’s real estate industry are already picking pace as Dubai continues strengthening the property market.
Recently, Dubai-based developer, Nakheel, announced the launch of ten new hotels across the emirate to gain as much from the tourism boom around Expo 2020. And considering the fact that Dubai’s expected population will rise to 3.2 million people, the emirate will experience an increase in construction activities to ensure that business goes as usual in the real estate sector.
Best rental yields in a booming property market
Compared with other recognised and expensive international tourism and business destinations, rental yields of properties in Dubai outperform competitors comprehensively.
According to UAE property website, Bayut.com, rental yields in Dubai can climb as high 8 per cent to ten per cent in select apartment categories. These numbers in no way indicate a slowdown of Dubai’s property market. Instead, it points towards a trend of sustainable growth in the local realty sector in the future.
Dubai holds a very strategic position in the region from where all kinds of business activities can be carried out with relative ease. There is another advantage associated with Dubai – it is located in close proximity to Russia, China and India, countries that some of the most prominent investors in the emirate’s real estate industry belong.
The short flight to Dubai from the capital cities of the above-mentioned countries also adds to the allure of Dubai as the go-to investment zone for high profile investors. As more and more investors come flying to Dubai to invest in its real estate market, the property business does not seem to be on the wane. On the contrary, it is improving by the day.
Organised and efficient real estate laws
In the past, business activities in Dubai’s real estate market lacked any formal legislation and regulatory infrastructure, which could regulate business in the emirate’s realty sector. At present, the laws governing business in the emirate’s real estate sector have been updated to the extent that it now boasts world-class laws, a modern land registry mechanism and a strong real estate regulatory authority. With these changes in place, investors have little reason to fear for the safety of their investment and instead they are going for the long haul as far as property investments are concerned.
Tourism and shopping paradise
Expansive malls and unique recreational points has allowed the emirate to keep tourism alive and in the process help its real estate market remain stable and strong.
In 2015, Dubai International Airport hosted roughly 78 million passengers. In 2016 this number is expected to rise to 85 million passengers. These trends will certainly have a positive impact on the emirate’s property market as more people look for respectable units while spending time in the emirate.
Looking at the above-mentioned reasons, one can safely assume that Dubai’s real estate sector will continue to witness a boom in business activities. With Expo 2020 just around the bend, business activities in the emirate realty sector are already picking up and the excellent run is expected to continue beyond to the delight of investors and the Emirati government alike.