Opinion: 7 reasons to buy property in the UAE right now

If you are mulling over investing in the realty sector of the UAE and worrying whether the oil price crunch or price growth showdown would affect your investments, here are some things you need to consider.

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1. Rental yields

Although Dubai’s property market is witnessing a slowdown in price growth, it continues to post one of the best rental returns across the globe. Statistics released by Bayut.com state that Abu Dhabi offers rental yields as high as ten per cent in select localities, while Dubai offers yields as high as eight per cent. Residential properties in Sharjah are the most popular among tenants of Dubai – if you invest here, you will always have someone interested in renting your apartment.

Currently, London’s property market (one of the world’s strongest residential markets) offers rental yields of four per cent. So, considering the fact that prices in Dubai and Abu Dhabi are a fraction of those in London, investing in these two emirates may turn out to be the best decision of your life.

Abu Dhabi is facing an acute shortage of affordable apartments; therefore, we advise investing in new affordable projects to secure the best rental yields in the future.



2. Economic and political stability

Although the UAE is generally seen as an oil-dependant economy, 71 per cent of its total GDP comes from non-oil sectors. Yes, the Emirates has successfully diversified its economy and the oil price crunch has had but a little effect on it. None of the announced infrastructure projects in any of the emirates has been stalled in any way, so you know that economy stands strong here and all your future investments would surely prosper.

Since a deteriorating law-and-order situation is one of the prime reasons for the flight of capital from a country, the UAE government has taken good care to address these concerns. The rulers of all seven emirates work in harmony and support each other in political matters. So, all concerns about political stability simply go out the window. The government [in Dubai] is working actively to make itself one of the safest cities in the world. After all, where else can you find a police force charged up by the latest super cars?



3. Tax-free environment

The UAE offers you a tax-free environment, which means you don’t have to pay any income or property tax here (unless you are a foreign bank or an oil company). Since real estate and income are not taxed, businesses and foreign investors secure full freedom to take all their earnings home. Isn’t that enough motivation to invest here?



4. Infrastructure and ports

Granted that Singapore, Australia, London and the USA have plenty of skyscrapers and impressive infrastructure, but the UAE actually outstrips them in many such fields. Dubai boasts the world’s tallest building, Burj Khalifa in Downtown Dubai,along with the world’s tallest residential building, the Princess Tower in Dubai Marina. The Gate Towers in Abu Dhabi far outstrip the size and structure of Singapore’s Marina Bay Sands hotel.

The UAE’s road and maritime infrastructure is also second to none and comparable to that of other global cities across the world. Not only do cities like Dubai offer you the best infrastructure, they also offer you one of the cheapest modes of transport across the region.

While Abu Dhabi generates commendable income from its oil reserves, Dubai thrives on its ports. The emirate features one of the world’s most efficient and well-equipped sea ports that have the capacity of effortlessly handling millions of tons of cargo each year. Freight giants largely prefer Dubai’s ports for cargo handling and it’s the very capabilities of these ports that add to Dubai’s allure as a high-quality business enabler.



5. Geo-strategic location

While talking about trading and ports, let’s not forget the UAE’s geo-strategic location. The country sits at the centre of the world and enjoys the best trading waters. Many people see the country as a true bridge between the East and the West.

Its tax-free environment and prime location on trading routes have made the UAE a natural pit stop for businesses moving from the East to the West and vice versa. Many businesses are opening their trading headquarters in Dubai and creating a good number of job opportunities for people across the globe. Since businesses don’t have to pay taxes here, they generally give better salaries and people from all corners of the world travel to the country for a better lifestyle.



6. Expo 2020

Speaking of jobs, the event that is expected to create more than 200,000 job opportunities in the UAE, Expo 2020, has boosted the country’s reputation as one of the best places in the world to work and live. Not only is the government upscaling its infrastructure for this event, it is also working hard to utilise the world expo’s flair to make Dubai the tourist capital of the world.

Having bolstered trade relations with countries across the globe, Dubai is ramping itself up to cater further business and tourism opportunities. The extension of Dubai Metro to the Expo 2020 site has benefitted many other residential localities, whose properties are now in high demand while prices remain affordable. The event promises Dubai a global clientele, higher profits and exceptional prospects, which add to all the reasons for foreign investors to choose the UAE as an investment haven.



7. Wealth and luxury lifestyle

Last but not least, let’s discuss the wealthy and luxurious lifestyle that Dubai is so famous for. All the luxuries you can think of are found in the UAE. Most of the people here are wealthy businessmen or tourists in pursuit of enjoying luxury lifestyle in the Middle East. They love to indulge in luxury and their immense wealth allows them to be as impulsive a buyer as can be. Also, the unemployment rate in Dubai is an impressive four per cent, so much of the money remains in circulation. These key takeaways have made the UAE’s most popular emirate an important business and investment centre.

Dubai is widely viewed as the best place for buying a holiday home and many popular celebrities such as Brad Pitt, David Beckham, Tiger Woods and Giorgio Armani have chosen to invest in Dubai and secure the perfect holiday getaway for themselves. Considering the pros, it’s no surprise these celebrities chose the emirate. Maybe it’s time for you to take that small step that will generate a giant leap in your investment returns.


By Ahsen Ghufran Khan, journalist and real estate analyst at Bayut.com

 

credit to Kippreport