Why do people buy property abroad? Foreign property investments open amazing opportunities:
- You can benefit from a fast growing or stable economy if you find your local market too risky.
- Investing in real estate in another country is a great way to diversify your portfolio.
- By renting out a foreign property, you can gain income in another currency if you’re not satisfied with your local one.
- You can find a better taxation system abroad thus increasing your profit.
Why invest in Dubai?
Nowadays it’s a popular choice to invest in Dubai real estate. According to Dubai Land Department (local real estate authority), in the first three quarters of 2018, 18.5% of all property was purchased by foreigners, with the total value of these transactions equaling to more than $8.1 billion.
Dubai real estate market attracts buyers from India, Pakistan, the United Kingdom, Saudi Arabia, China, and other countries. And there are several reasons why investors are so obsessed with local property.
- High ROI
The very first thing any investor wants to know is how much profit they can get. Currently, those who invest in Dubai real estate can expect annual returns ofmore than 7%, with some areas exceeding even 12%.
High ROI of Dubai property is attributed to the combination of relatively low prices (in comparison to global cities such as New York, London, Tokyo or Singapore) and high demand for rent.
- Market transparency
Transparency is another important factor to consider when investing in real estate. According to JLL Global Real Estate Transparency Index, Dubai is now the most transparent property market in the Middle East and ranks 40th globally.
- Diversified economy
As mentioned above, one of the most common reasons to invest in foreign property is to benefit from alternative economic conditions. If you’re not certain what to expect from your local economy, why not use another country?
Dubai has a diversified economy based on such pillars as tourism industry, real estate, retail, re-export and other sectors. Oil export nowadays accounts for just 1% of the emirate’s GDP.
It means that you can safely invest in Dubai real estate without having to worry about the emirate’s economy as it’s pretty strong and stable.
- Long-term residence visa
The UAE authorities have implemented a new visa system that grants residency to foreign professionals, doctors, students, businessmen and investors.
If you invest in a property not less than AED5 million, you can get a 5-year residence visa. You can also acquire a 10-year visa for investing in the UAE economy not less than AED10 million, with not more than 40% going to the real estate sector.
- Stable political system
Social stability is another important issue to address to when dealing with real estate investments. The United Arab Emirates is a federation, but each emirate is ruled by a monarch. Despite how you might feel about it, the country can boast a stable political system, with the government following well-reasoned long-term policy aimed at raising the country’s living standards and economic power, as well as attracting foreign investments.
For the record, Dubai’s diversified economy and oil independency is the result of such policy.
- Developed transport
Lastly, the UAE has a unique location between Africa, Europe and Asia, which made it one of the world’s most important transport hubs while Dubai International is recognized as the world’s busiest airport in terms of international passenger traffic.
As you can see, there are plenty reasons to consider Dubai one of the best destinations to buy property as investing in Dubai real estate grants you multiple benefits.