Dubai is a robust cosmopolitan city nestled in the middle of the desert. The city has not only become a hot spot for tourists and expats, it has also attracted investors from all over the world. At the rate of how fast Dubai is going, it is a good time to invest in its property market.

What are the advantages of investing in the property market of Dubai?

First, the government of Dubai has strict rules and regulations in place to protect investors and insure prompt developer's delivery. More importantly, in an approved budget for 2016 by HH Sheikh Mohammed bin Rashid, a 12 % increase in budget will further allow the government to more strictly regulate the real estate industry. These regulations are strictly applied to developers and monitor their off-plan property sales and marketing. Dubai Land Department, however, dutifully monitors each development's progress and makes sure that the financial resources gathered from purchasers will only go to construction purposes.

Second, property investment generates passive income. One of the most feasible investment opportunities in Dubai is the property market. It has rewarding profit projection in the long run. Compared to equities, these long-term benefits have low volatility compared to equities and it can also help diversify one’s portfolio. Furthermore, Dubai is a home of mostly expats that come and go in the city. Therefore, the demand for homes for rent is constant. Most investors take the buy-to-let homes route because they are easy to rent and the turnover is higher as well.

Third, Dubai is a massive player in the world’s tourism industry with world-class hotels and tourist attractions. In fact, for the year 2015, Dubai was named as world’s fourth most visited city with tourists up by 7.5%. The emirate received 14.2 million visitors overnight last year. In a short span of time, Dubai has proved to the world that it is not slowing down when it comes to building bigger and better properties whether for tourism or housing purposes. From massive islands, theme parks, shopping malls and other infrastructures, Dubai has no signs of slowing down. In 2016 alone, Dubai is expected to open four theme parks and a number of residential developments. The market value of Dubai will always stay afloat despite its rocky past.

Fourth, the United Arab Emirates has a strategic geographical location and the country benefits from this. It has an attractive business environment and a number of Free Zones with incentives and tax frameworks for international corporations.

Fifth, the UAE has begun diversifying its economy because of the lower global prices in oil. In fact, it is 70% independent of its oil economy. This is why the impact of changing global market conditions is insignificant because Dubai, specifically, already has a diversified economy. This week, UAE leaders have commenced a two-day retreat so that they can plan strategies to tap other sectors to veer away from dependence on oil.

Lastly, the city is preparing to host the World Expo 2020, which is highly prestigious and recognized around the world. This will attract an estimated number of 25 million visitors and this is good news for the property market. The influx of visitors and investors will need a place to stay and future investors will be interested to invest in properties whether homes or commercial spaces.

Frequently Asked Questions

Dubai is a massive city. Where do I invest?

Invest in prime locations where there is low risk of market slowdown. Look into established locations where there are already roads built and easily accessible from the city. Master communities are the best places to invest, ones that are built by reputable developers.

What is the most important factor to consider when it comes to investing in property?

Buy-to-let investors must calculate their property’s annual income prior to taking the plunge in the property market. Aside from this, important factors to consider are the payment plan, developer reputation, location, real estate agent and master community.

I am interested in Dubai’s property market. Where do I start?

Contact a reliable real estate agency in order to get expert advice and have options on which prime property to invest in. They will offer investment assistance while you search for the right property for you even after the sales transaction. In fact, they will guide you through the entire process to make sure you invest in the right property development.

Will I get a Residential Visa when I invest in Dubai?

A property visa is issued to the owner once a property is bought in Dubai. While it changes from time to time, the current property visa regulations require: either a six-month multi-entry visa or a two-year residency visa depending on the conditions. Property must be worth over AED 1 million for one property only. Title of the deed must be named after you and that person will be entitled to the said visa.

What is freehold property?

Freehold property means the outright ownership of said property and land where it stands. This also means the owner has no limit to his period of ownership.
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