Dubai has emerged as a real estate hotspot. The reason? The persistent hype surrounding the city. This is due in part to its impressive skyscrapers and luxurious lifestyle options. Additionally, it's the city's strategic vision that has made it a global hub for tourism, real estate, and innovation.
However, it's important to note that real estate investment in Dubai can be challenging. Especially for those unfamiliar with the dynamic market conditions and legal framework. But if done right, Dubai can be a veritable goldmine for investors. This article reveals why real estate in Dubai is particularly attractive and what to watch out for when investing.
Dubai attracts with promising prospects. Long-term rentals promise returns of seven to nine percent. This makes the city an attractive destination for real estate investments. These prospects are supported by a positive growth outlook: by 2040, Dubai plans to almost double its population, suggesting sustained housing demand.
The UBS Global Real Estate Index 2023 estimates that Dubai is fair-valued, unlike overvalued cities like London, Paris, or Zurich. This makes Dubai a promising market for real estate investments, especially given the current global market conditions.
Savvy use of foreign capital can provide investors with significant leverage and allow them to diversify their wealth globally. The dirham, the local currency of the United Arab Emirates, is pegged to the US dollar and thus has a fixed exchange rate.
By investing in real estate in Dubai, investors not only diversify into a rapidly growing economy but also into the US dollar monetary zone. This strategic diversification can have positive effects on the overall real estate portfolio.
The Persian Gulf city is attracting more and more expatriates, and tourism is experiencing impressive growth. Meanwhile, investors have also discovered the metropolis. The emirate's economy is booming, and construction cranes seem never to stop. So is it time for investors to venture into buying real estate in Dubai? "For now, it's certainly worth a try.
Currently, we're still dealing with relatively low prices in Dubai, but still high yields. However, the real estate market is not easy to grasp due to its dynamics. We're largely negotiating properties that are still under construction. To make good deals in Dubai, quick decisions are required. An experienced partner is therefore absolutely recommended.
Here's what investors need to know about buying real estate in Dubai and why investing in it is worthwhile now.
A city that seems straight out of a fairy tale, futuristic skyscrapers, pleasure gardens, wide sandy beaches, and the sun. Many Europeans are attracted by Dubai's quality of life and economic dynamism. But is it worthwhile for investors to search for suitable real estate on Dubai's real estate market? Is it safe to buy there? And can you get a good return?
If you think of real estate as a capital investment, you should definitely consider Dubai. Compared to France, prices there are really cheap, while still offering the potential for high returns.
What characterizes the city is a mix of quality of life, stability, and future orientation. Additionally, Dubai enjoys a very investor-friendly climate. In the coming years, Dubai's population is likely to double. So there's a great need for commercial real estate and housing. Add to that the fact that the city is banking on tourism and achieving great success in this area. Last year, Dubai ranked just behind Bangkok, Paris, and London in terms of visitor numbers. This is not surprising, as Dubai has many advantages: a beautiful setting, long sandy beaches, attractive nightlife, excellent shopping opportunities, and proximity to the desert. Many tourists also prefer Airbnb to a hotel because they feel closer to the pulse of the city. For the owner of an apartment, this means that they can rent both short and long term. Both generate decent income.
Unlike European metropolises, a real estate owner in Dubai also does not have to expect ceilings, guidelines, and tenant protection laws, hence favorable legislation for landlords.
Dubai's real estate market is a true magnet for French investors. This is hardly surprising, after all, this thriving city attracts many people. The futuristic architecture, which at the same time reminds one of the Thousand and One Nights, is not the only convincing factor. Strong economic growth and a focus on sustainability are also driving factors for many investors. However, it is interesting to note that many investors end up foregoing the purchase. The reason lies in the many myths circulating about buying real estate in Dubai, which are not accurate. On the contrary, for example, it is easier to finance real estate in Dubai than in France.
With Prestige Real Estate Dubai, French-speaking investors will always find answers to their questions about financing, property search, and purchasing in Dubai. All information by directly contacting our agency.
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