Dubai is Being Hailed the Top Investment Spot for 2017

In a competitive domestic property market and due to added government pressure on the buy-to-let sector, many investors are considering international real estate as an alternative. Your options are potentially limitless in this respect, with a whole host of investment opportunities at your disposal.

One area to look towards is Dubai – the most populous city in the United Arab Emirates with a prime location on the Persian Gulf. Property in the esteemed Emirate has long been sought after, and despite market uncertainty around 2009/10, a period of economic stability has since ensued.

With solid employment numbers, a healthy tourism sector and the looming Expo 2020 on the cards, Dubai is now one of the leading property hotspots in the world as we move into 2017.

Positive Forecast

The recent ‘Middle East Private Capital’ survey by property management consultancy firm Cluttons pits Dubai as the most preferred real estate investment location for 2017.

This has been backed up with numerous property forecasts suggesting Dubai property prices will remain stable throughout the first half of 2017, experiencing a much-anticipated rise as we move further into the year.

The upsurge in oil prices along with the political and economic upheaval in the UK and US have made Dubai a desirable place to invest.

Image credit: Maher Najm via Flickr

One reason for this is the expected upsurge in oil prices, a major boost to any Gulf economy, leading to a stronger demand for real estate in the region.

Another interesting angle comes with the US Presidential result, where interest in Dubai property boomed after the Trump victory. Many investors see the Emirate as a safe investment with the future of America, and also the UK post-Brexit, as too unpredictable.

Taking the plunge now when market conditions are most favourable is the best way to achieve the highest long-term gains and a solid ROI.

Life in Dubai

Although Islam is the dominant religion of the UAE, there’s not the same dogmatic approach in Dubai as with other regions of the Middle East. For example, sports gambling and the consumption of alcohol are permitted in licensed premises.

Dominating skyscrapers, luxurious beaches, a westernised culture and booming tourism sector have all played its part in attracting both holidaymakers and investors to the city. The rich and famous often holiday in Dubai, further boosting its reputation, enjoying an array of extravagant restaurants, bars, beaches and hotels.

Dubai has become a tourist hotspot thanks to its wealth, sights and beaches.

Image credit: krebsmaus07 via Flickr

Transport links are also highly commended, with Dubai International Airport located just 2.5 miles from the city centre, along with a modernised metro line, tram service and large bus network.

Expo 2020

As previously noted, the revered World Exhibition is being held in Dubai in 2020, a proven catalyst of activity in the property market. In total, Expo 2020 is expected to create nearly 300,000 new jobs and inject around £35 million into the economy.

Although many British investors may not be familiar with the event, the Expo is a major coup for the host city where the world’s leading entrepreneurs gather for a wealth of exhibits and presentations.

Dubai's great transport network adds to its investment appeal.

Image credit: Raihan S R Bakhsh via Flickr

When preparation for Expo 2020 intensifies, the job sector will thrive – mainly in the construction, engineering and hospitality arenas – leading to a vast demand for residential property. The buy-to-let market in particular will flourish, with rental yields being as high as 10-12% in some areas.

Investment Strategy

Before making an investment in an international market, it’s recommended to use a UK-based estate agent to guide you through the process. They’ll have a more informed view of how the Dubai property market is performing, as well as the prime investment spots.

If you’re ready to invest in Dubai, get in touch today.
Would you like to know more? Check out our 11 Fun Facts About Dubai.

Dubai Expo 2020 – The Effects on Property Prices

In 2013 it was announced that Dubai will play host to the renowned Expo world exhibition in October 2020. As well as exuberant celebrations and high anticipation for the UAE city, the reverberations of the result were also felt throughout the property market.

As the event draws closer, estate agents and property speculators are confident the Expo 2020 event will have positive consequences for property prices in Dubai.

The positive effects of Expo 2020 are already being felt in Dubai.

Image credit: Sam Valadi via Flickr

What is Expo 2020?

From October 2020 to April 2021, a series of technological events and presentations will be on show around Dubai, attracting the world’s leading individuals and companies exploring networking opportunities.

Because the universal exhibition hasn’t been held in the UK for over 100 years, it may not be within the public conscience domestically. It is a very important event however, helping to boost the economy of the host city to a great extent.

The positive effects of Expo 2020 will be very rewarding for Dubai and the UAE as a whole. An injection of £30 billion will be pumped into the economy, supported by an influx of around 20 million visitors and helping create nearly 300,000 new jobs in the process.

Dubai property prices are set to rise in 2017.

Image credit: J D Mack via Flickr

Dubai Property Market

Indications show that the Emirate’s property sector is already starting to perform well after periods of uncertainty from 2008, even without the benefits of Expo 2020 taken into consideration. Property prices have stabilised and look set to increase from 2017 onwards, aided by Dubai’s thriving tourism sector and ongoing government investment schemes.

Rental yields in Dubai can reach up to figures of around 8-10%, especially in the apartment sector located around the Dubai Marina location. With property prices remaining stable but expected to rise closer to 2020, it’s worth considering an investment during the current climate.

Effect of Expo 2020

The UAE government is sparing no expense preparing for Expo 2020. Huge investments are being made to improve the infrastructure of the city to cater for large visitor numbers and provide entertainment. Work has also begun on a structure known as The Tower, designed to be bigger than the Burj Khalifa.

New investment opportunities are now under construction in Dubai.

Image credit: Joi Ito via Flickr

Real estate will benefit from these mega investment schemes in particular. The general consensus is that this increased investment from wealthy foreign buyers will strengthen confidence and increase Dubai property values, even after the exhibition has ended in 2021.

Likewise, due to the significant influx of workers and tourists to Dubai in the build-up to Expo 2020, the rental market in particular looks an attractive prospect for buy-to-let investors. Of course, construction and hospitality staff require somewhere to stay, as do wealthy businessmen who will visit during the exhibition.

Investors looking for long-term growth potential should consider an immediate purchase of a Dubai property and take advantage of the healthy rental market. Being prepared to hold this real estate through Expo 2020 and beyond will reap the biggest returns on investment as prices are expected to rise in the long term. Not to mention the rental income gained during this time.

If you’re ready to invest in Dubai, get in touch.
If you’re not quite ready to invest yet, you might be interested in some more reasons why the time is right to invest in Dubai.

Dubai Property Investment? The Time Is Right Now!

Buying real estate in the Dubai property market is something investors should be considering during the current climate.

Numerous indications show the most populous United Arab Emirates city, famed for its more liberal and glamourous lifestyle, is on the verge of major investment and expected property price increases through 2017.

As Dubai has many things going for it right now, we’ve taken a look at why a property investment there is becoming an attractive prospect for international buyers.

Political and Social Stability

It’s perhaps natural to think the Middle Eastern region is constantly under threat of political upheaval and even war. However, there’s no such concern for the UAE, a country that has more relaxed laws and a general respect for other cultures. This has allowed Dubai to prosper as a tourist destination during the 21st century.

 

Dubai has many benefits for both expats and tourists

Although an Islamic country, the laws are beginning to relax for non-Muslims in the city. For example, residents can drink alcohol at home and in certain venues with an alcohol license. Likewise, a recently passed law allows non-Muslim expats to include property in their will should the worst happen.

Of course, many expats are also drawn to Dubai because there is no enforced federal income tax legislation within the United Arab Emirates. In terms of a property purchase, there’s even more good news for investors with no VAT or capital gains taxes to contend with, along with no annual property charges either.

Expo 2020

Dubai was chosen as hosts of the Universal Exposition, or Expo for short, to be held in 2020. It involves the staging of a majestic public exhibition showcasing a wide range of events, attracting a staggering 20 million visitors in the process.

 

There are events coming up in Dubai which will boost the property market.

An Oxford Economics report declared that the impact of hosting the exposition would be extremely beneficial to the economy. Nearly 300,000 jobs will be created in the build-up to the event, with a lasting legacy to boost the whole region.

For property investors, acquiring a Dubai property right now is recommended before the Expo 2020 boom starts to hit.

Optimum Prices

Shrewd investors take advantage of favourable buying opportunities in the market and, right now, Dubai is one of them. Current property values are on the relatively low side after recent drops in price, but are expected to rise as we approach 2020.

 

Now is a great time to investment in Dubai property.

Another bonus is that rental prices have remained the same, thus improving yields significantly for landlords. Average rental yields can range from 7-10% per annum, far higher than the average for other major cities around the world.

Because of this, it’s favourable to consider buying as opposed to renting. In the current climate, it may actually be less expensive to obtain a mortgage than pay rent in the long term. Rents are also expected to increase as Expo 2020 draws closer and wealthy financiers come to town.

Property in Dubai offers more value for buyers than other prominent cities around the world. A report by estate agents Knight Frank shows that you’ll get around seven times more space in square metres with a Dubai property purchase than you would in London, Monaco and Hong Kong.

Numerous experts believe the Dubai property market is maturing, mainly because prices have remained stable since mid-2014. This shows confidence is returning and will soon attract investors looking to take advantage of these long-term growth opportunities within the city.

If you’d like to know more about investing in Dubai, get in touch with us today.
If you’d rather stick with investing in the UK but are worried about the current market climate, you might be interested in why there’s no prospect of a housing market crash.