By The luxurious lifestyle and world-class facilities available in Dubai attract people from all over the world. The many job opportunities available in the city along with the excellent transport and communication facilities, endless retail and dining options and a significant return on investment makes Dubai a favorite investment destination for many.
In this article, we share with you a few other reasons that make investing in Dubai real estate market a profitable business.
1. The Right Time to Invest
According to a study conducted by an independent financial advisory firm, Holborn Assets, the property prices in Dubai are expected to fall in the coming years. Thus, if you are considering investing in Dubai, then you should take advantage of the dropping price and invest now. The real estate market also provides a good return on investment which makes it even more attractive.
2. No Annual Tax on Property
Investing in the real estate sector of Dubai is profitable as no tax needs to be paid on the property annually. Once the property is purchased, and the registration fees are paid, there is no additional duty or tax that you are required to pay.
Thus, when compared to the rest of the world investing in Dubai is far more profitable. While a property investor in Hong Kong has to pay 15% as annual property tax, a property owner in New York or London pays a little more than 2%. Thus, by investing in a property in Dubai, a property owner can make more money from real estate when compared to the rest of the world. This is another reason why you should consider investing in a property in Dubai.
3. Low Cost of Acquisition
Investing in Dubai’s real estate will not only help you in saving money by not spending on taxes but also through the low cost of acquiring the property. This money saved can be invested more profitably somewhere else. When compared to the cost of acquisition in world-class cities like New York and London, the cost of acquiring a property in Dubai is minuscule. The cost will be 30% to 70% lesser than acquiring properties in major cities around the world. In addition to all this, you are entitled to a Dubai residence visa even if you invest in property as low as AED million. This makes it easy for you to visit the country and opening a bank account in Dubai.
4. High Return on Investment
The real estate market in Dubai keeps on growing as the population increases. Thus, if you are paying a reasonable amount as rent every year, then it is advisable to invest in a property. This way you will not only save rent but also get a good return on investment if you decide to sell it sometime in the future.
The rental income in Dubai is also considered to be high when compared to the major cities around the world. You can expect to get a minimum rental income of 5% and average income of 8% of the property value in residential areas like JVC. Thus, renting out your property is also a good option as you can earn a good return on investment.
5. Expo 2020
The Expo 2020 is sure to bring in more economic activities in the Emirate with more than 25 million visitors and new residents visiting the city. It is estimated that around 120,000 new properties will be offered in the market around Expo 2020.
All this makes investing in the real estate market in Dubai right now a more profitable venture.
