Dubai has become one of the most attractive investment destinations in real estate in the world in a very swift manner. Although the traditional investment centres such as London and Singapore have always been in the limelight, the international investors are now shifting their capital towards Dubai, and with justifiable reasons. Dubai can afford to offer opportunities that such markets can seldom replicate due to the higher rent, tax breaks, and unparalleled infrastructure.
Higher Rental Yields
High rental returns are one of the greatest attractants of investors in Dubai. Dubai real estate yields on average 6-8 per cent per annum and some of the highly demanded areas yield higher. In comparison, London and Singapore normally offer rental returns ranging between 2% and 4%, often pushing investors in search of better returns elsewhere.
Examples: Dubai Marina, Jumeirah Lake Towers and Business Bay have always provided returns over 6 percent, which makes them excellent to both long-term investors and those who are concerned with rental returns.
Why it is important: Intense rental returns lead to quicker profit investment and reinvesting the earnings in other property, quick growth of the portfolio.
Tax-Free Advantages
Dubai is very appealing to investors all over the world as it comes with zero personal income tax and zero capital gains tax on property transactions.
London: The capital gains tax and property taxes reduce net returns that investors must pay.
Singapore: Singapore has a lower capital gains tax rate as compared to other nations; it has buyer stamp duty and property levies, which reduces profitability.
Why it is important: Tax free environment in Dubai maximizes the profits of the net profit, and thus the investors can easily realize high returns without the heavy taxation.
Freehold and Full Foreign Ownership.
Dubai permits 100% foreign investment in specific freehold zones. The investors are allowed to buy, lease or sell the properties in full legal rights which is not always a case in London or Singapore.
London: Foreign ownership is not limited but taxes and property laws are more elevated.
Singapore: Foreigners are allowed to purchase certain forms of properties, although it is usually limited.
Why it is important: Full ownership is secure, has control and can manage properties just as investors feel prudent to do.
Strategic Positioning and Global Infrastructure.
The geographical position of Dubai is difficult to overestimate. It is a significant business, tourism and trade centre located between Europe, Asia and Africa. Its infrastructure is world-class with airport systems, ports, and metro networks, and road systems, which makes it easy to connect both the residents and the tourists.
Comparison: London and Singapore are robust business centers, but Dubai has an added advantage of having a good infrastructure and a low taxation and high rental returns, a factor that few other cities in the world can share.
Why it is important: Strategic location attracts foreign tenants, spurs rentals associated with the tourism industry and gives a guarantee of long-term interest in property.
Pathway to Residency through Golden Visa.
Residency can be secured in Dubai under the Dubai Golden Visa program in case of investing in Dubai houses. Investors on fulfillment of certain property and investment requirements are guaranteed long term residency thus providing freedom to live and work in the UAE.
London and Singapore: Purchase of property does not necessarily provide residency and, as a result, Dubai is an exception to the rule of investments + lifestyle.
Why it is important: This advantage will provide non-financial value, which will be an attraction to high net worth investors who want to have lifestyle flexibility and global mobility.
Resilient Market Growth
The real estate market in Dubai has presented an incredible level of resistance and development even in the changing economic conditions across the world. The city is still a destination of foreign investors, multinational corporations, and expatriates and this demand on residential and commercial construction.
The ongoing and recent developments in Dubai such as Jumeirah Garden City, Dubai Creek Harbour and Business Bay expansions are good signs of strong appreciation in the long-term.
The confidence in the market is also improved by the regulatory reforms and investor friendly laws of Dubai.
Why it is important: The future of the market is a strong, growing market which will guarantee that investments will not lose their value and will keep gaining more and more.
Various Investment Opportunities.
The property market in Dubai has a variety of opportunities:
Residential: Town houses, villas, apartments.
Business: offices, retail.
Short term accommodation: Airbnb and serviced apartments.
London or Singapore would not be as flexible as investors can customize their portfolios according to the risk tolerance, ROI objectives, and market trends.
To global investors, Dubai has a unique combination of:
- High rental yields
- Tax-free profits
- Full foreign ownership
- Good location and connectivity.
- Potential of Golden Visa residency.
- Resilient market growth
As London and Singapore are still appealing global cities, Dubai is rapidly transforming into the destination of intelligent investors, looking to receive high returns, low taxes, and have a long-term growth perspective.
Join Keyestone Real Estate.
The Dubai real estate market is full of opportunities, but it is necessary to plan smart. We are Keyestone Real Estate, and we aim to assist investors in all aspects of their professional journey: we will help to choose the perfect property and earn the highest rental profit and attract the amazing profits.
- Website: www.ksgre.ae
- Call: +971 52 984 7151
Join our team: hr@ksgre.ae
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