What does an investor anticipate before putting his money in the real estate?
Is it economic growth, market stability or high returns ?
Undeniably Dubai is that one place where you get a green signal on all the above pre-requisites of investing. Dubai real estate is on the boost due to continual growth in the economy. This makes Dubai one of the safest and most lucrative cities with regard to real estate. It ranks 6th highest for inbound property investment which has increased by 2 ranks from the last year,that made a good impact on Dubai World Expo 2020
Here are a few reasons why Dubai real estate is one of the most secured sectors to invest in.
- High Rental Yields
One of the major reasons is the rate of return on investment why the investors are attracted towards Dubai real estate. For an apartment of worth Dh1 Million, the investor could get a rental return of Dh80,000 annually, which makes 8% of the investment. With these numbers, an investor could easily get his investment pulled out in 12.5 years (keeping all the other financial influencers constant). Despite the news circulating about decreasing rents, Dubai real estate witnessed no decline, the reason for it could be a lucrative economy, astounding areas like Downtown and Dubai Marina, and tourist places like Jumeirah.
- Dubai’s Global Demand
Due to open opportunities and worth on international forums, Dubai has stayed in demand globally which has assisted Dubai real estate to elevate its level. Numerous earning options with a heart that welcomes everyone is another reason for the rise in the Dubai real estate. In addition to that, due to the variation in the property rates, no one hesitates to opt for a property in Dubai. You can get an apartment for as low as Dh26,000 and as high as Dh1 Million, and this fact alone is enough for the prosperity of Dubai real estate.
- Real estate agents’ commission
2% real estate agents’ commission in Dubai is relatively lower than the European countries. The buyers or sellers do not hesitate in hiring an agent for their property which pushes Dubai real estate towards growth. Due to the low commission, the competition in the real estate market is above par because every agent wants the customers to hire him. This competition also triggers Dubai real estate to up the game as compared to other countries.
- Dubai World Expo 2020
The hype about the World Expo 2020, being hosted by Dubai is about to bring tempestuous success for various sectors including Dubai real estate. More than 160 countries till now have confirmed their participation to showcase their innovation and advancements. Accommodation is the top-of-the-list concern for any country that is to host this massive expo, therefore, Dubai real estate is about to avouch an ascent beyond expectation.All the factors contribute to elevating Dubai’s economy hence Dubai real estate does not seem to lower its pace of progression until 2021.