Why the best time to invest in a property in Dubai is now
The world has been turned upside-down by the COVID-19 pandemic.
Property investors are likely to be reassessing where best to make their investments in the latter part of 2020.
Here are five reasons why now is the best time to buy a property in Dubai.
1. Dubai is best-placed for a post-COVID-19 economic recovery
The effects of the COVID-19 pandemic continue to be in full force. Some world economies are still reeling from the repercussions, but Dubai is set for recovery.
While there is no doubt that the pandemic has hit the UAE economy, the country has been less affected than other developed nations. This is, in part, due to the country’s stringent and fast-acting measures to contain the virus.
Where the pandemic has hit harder — in Japan, the US, the Euro area, and the UK — World Bank projections for the remainder of 2020 are significantly worse. Due to the fact that restrictions were relatively short-lived in Dubai and early on in the pandemic, too, the emirate has been able to make a head-start on its recovery.
Many global lockdowns are now being eased and the emirate’s travel and tourism industry is open, so Dubai is in a prime position to receive a boost from visitors and recapture income from tourism.
The delayed Expo 2020 will take place next year and continued government stimulus will also help the economy recover relatively quickly. Projections suggest this may happen as early as 2021 — much earlier than elsewhere.
Recovery in the property sector
These promising predictions, along with the fact that COVID-19 has been and still is being handled confidently and swiftly, should reassure investors that Dubai is a safe place to purchase property.
The rest of 2020 offers an opportunity for investors to capitalise on low prices. At DAMAC, construction on projects has continued. The Company has seen significant interest in its developments post-lockdown, especially from overseas investors, as some interesting real estate offers are currently available.
2. Excellent rental yields
Dubai is known for its buoyant rental market.
The UAE has the highest population growth rate amongst the Arab nations. This is related to its excellent services, including healthcare, an attractive lifestyle, and an ever-growing expatriate population.
The rental market will also be boosted by the delayed Expo 2020 in 2021. The demand for rental properties will be extremely high before and during the event’s six-month duration. Plus, the mega event will maintain 80% of the Expo’s buildings and structures to leave a meaningful and lasting legacy.
Purchasing property where there is an excellent rental market brings better short-term rewards while capital appreciation continues.
Dubai can offer excellent yields in a consistent market that offers an average ROI of over 7% and sometimes as high as 10%, according to a recent report by Dubai property experts at Property Finder.
This makes Dubai an attractive choice, especially if you compare typical yields in markets such as London, Sydney, Singapore and Hong Kong, where yields are lower than 3%.
3. A highly attractive lifestyle
There are only a few places in the world that can offer the quality of life that Dubai does. With its state-of-the-art infrastructure, alongside world-leading dining, entertainment and leisure options, stunning architecture, and luxury shopping, the emirate is highly appealing to investors from all over the globe.
Note that its position as a global aviation hub makes Dubai easily accessible from almost anywhere on the planet. And continued investment in visionary infrastructure projects — such as the RTA’s autonomous mobility and AI projects — will make Dubai an even more incredible place to live in the future.
Property in Dubai allows residents some incredible living options. There are villas, townhouses and garden terrace apartments in peaceful, leafy suburbs like High Gardens at DAMAC hills. Or incredible views from iconic tower apartments in the beating heart of the city, such as AYKON City on Sheikh Zayed Road or Zada Residences in Business Bay.
Recent relaxations in visa rules now allow property investors to apply for residency permits. These are currently valid for five years and require no other stipulations, like working within the country.
The property must be retained for three years for the visa to stay valid. This allows property owners to enjoy all the benefits of living in Dubai, to come and go as often as they like, and to stay for as long as they wish while still fulfilling their commitments elsewhere. This puts Dubai in a new light as a retirement destination too…
5. Well-regulated, stable framework for investment
Dubai offers a consistently politically stable environment for investment.
In addition, the Dubai property and construction sectors are particularly well-regulated. An excellent framework exists that keeps property investments in the emirate safe for both developers and investors. These include escrow regulation, rental caps, and the rental dispute settlement centre. In a post-COVID-19 world, this environment will be particularly reassuring.
There’s no doubt that the world is suddenly a very different one. However, buying property in Dubai remains a safe and very attractive option.
Buying now offers investors the opportunity to get a good deal on property. This will probably result in even better returns on investment as the economy continues its recovery and the demand for rental properties increases.