Whether you are a first-time investor or an experienced one with a wide-ranging portfolio, there is a good chance that you have had your eyes on the Dubai property market for a long time. After all, it is one of the most popular and profitable property markets in the world, with new developments and projects popping up all the time.
Not only is it exciting in terms of the design and architecture (the city prides itself on its creativity), but the rules and laws surrounding real estate investment provide plenty of incentives for savvy investors. There aren’t many places that offer no property tax and high yields.
If you are considering getting involved in the property market, read on for the essential things to know before investing in new real estate projects in Dubai.
1. Dubai is one of the most popular global destinations for real estate investment.
Over the past couple of decades, Dubai has emerged as one of the world’s most popular destinations for real estate investment. One of the main reasons why it continues to be a hub for global investment is because the city continues to be in development. Investors see projects such as the Dubai Mall and the Palm Jumeirah island and know that this is a locale that is committed to continuous development. As the home of innovative and groundbreaking architectural projects, Dubai will continue to attract real estate investors who are open to new projects.
Additionally, Dubai is one of the fastest-growing cities globally, ensuring there is a constant demand for new real estate. Not to mention that properties in Dubai have a high rental yield, averaging around 7%. When you compare that figure to New York (2.9%) and Singapore (2.5%), it becomes clear why investors love to invest in properties in Dubai.
Dubai provides investors with an array of incentives. One of the main advantages of buying a property in the UAE is, of course, the absence of property tax. Additionally, there is no capital gains tax or income tax. For this reason, properties across the UAE and especially in Dubai, continue to provide excellent opportunities for savvy international property investors.
Finally, you can’t underestimate the importance of Dubai’s stability. This political and social stability is essential for investors and developers who want to ensure they can complete their projects as planned. The stability in Dubai is one of the main reasons its economy has been steadily growing, paving the way for the success that has been seen in the real estate, tourism, and manufacturing industries.
2. Some areas offer the best investment options.
One of the major decisions you have to make when considering investing in property is its location. After all, this has a significant impact on the value of the property, as well as the amenities that are close by. Generally, investing in property that is near landmarks such as Dubai Marina is a popular choice for global investors. Dubai Marina is preferable because it is a thriving business centre that attracts many expats, business people, and tourists who want to be close to their workplace and in a prestigious neighbourhood with an array of amenities.
Located in the middle of Dubai, Business Bay, and Downtown Dubai comprise Dubai’s business centre. This is one of the main tourist areas in the UAE, attracting millions of visitors every year. Similarly, Barsha Heights is a prime choice for visitors, as it is located in the heart of ‘New Dubai.’ Other options include Dubai Sports City, which is close to the city’s major roads and barely 15 minutes away from the Expo 2020 pavilion. For this reason, it is one of the most sought-after areas for investors. Also close to the Expo 2020 site is Jumeirah Village Circle, one of the fastest-growing areas in Dubai.
Of course, there are plenty of areas in Dubai that offer investors fantastic options for new projects. However, these are some of the areas that are tried-and-tested neighbourhoods, and that show no sign of slowing down.
3. Finding reputable real estate developers in Dubai is essential when considering a new project.
If you are looking to purchase property in Dubai or invest in a new project, it is crucial that you ensure you are working with a reputable real estate developer. This is one of the most important things to do when looking to take part in the Emirate’s housing market. Unfortunately, despite being a global property hub, you still run a risk of getting scammed if you don’t choose the right developer.
There are a few essential things you need to consider when looking at potential real estate developers in Dubai. For starters, you want to ensure they have a strong track record of successful projects. This is the single most crucial indicator of whether or not you can trust them. Generally, it is recommended that you avoid working with developers who are just starting out and instead work with those who have years of experience in similar projects to yours. In other words, you don’t want to be lured in by marketing materials or showroom examples; instead, you must be considering the developer’s balance sheet and reputation.
Due to the real estate boom in Dubai, there is a massive increase in new developments. To ensure that you aren’t choosing the wrong projects and falling prey to a saturated market, make sure you are selecting the right real estate developers.
Furthermore, you also want your real estate development company to have strong leadership and experienced professionals in construction, law, and real estate brokerage. By having all these bases covered, you can be assured that the company has the expertise and resources to conduct and complete the project in the best way possible.
Are you looking to work with real estate developers in Dubai? Do you already own property there? What do you think are the most critical property-related developments that are happening? Let us know your thoughts and any other relevant insights in the comments below!