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.
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.
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.
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.
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.
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.
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.