Why the UAE is set to be the real estate market of choice for Israel
According to UAE Information and Services, the UAE attracts 36% of the total amount of foreign investment flowing into the Arab world, making the region attractive to foreign investors
As the UAE and Israel take great strides together towards a strengthened, unified approach to trade exchange and promising business partnerships, the UAE looks forward to welcoming Israeli homeowners and investors into its real estate circle. With ready and off-plan properties designed for both, the discerning investor and families ready for a new way of life, the UAE as always, represents a lucrative real estate investment opportunity.
Let’s take a closer look at how this opportunity translates into tangible, emotional and financial benefits for the Israeli investor.
With more than 200 nationalities living across the nation’s seven emirates, the country is a reflection of multicultural harmony and true to its own Arab culture, is welcoming of foreigners from all over the world who are looking to call the UAE home. Showcasing the highest levels of cultural diversity, religious tolerance and mutual respect for residents, the UAE’s culture of acceptance serves it well, creating a cultural fusion that drives economic and social growth.
Safety & Security
Recognised as among the top 10 safest countries in the world, the UAE has earned this coveted spot through years of carefully developing and implementing a law enforcement system that resulted in low crime rates year after year, confidently encouraging residents to bring in their families, establish businesses and stay in the country for the longer term.
With a strong regulatory framework ideal for investment, the UAE represents an excellent opportunity for Israeli investors looking to diversify their real estate holdings and simultaneously achieve high yields. According to the Global Property Guide, where the Tel Aviv market offers a per square metre price of USD 17,149, the UAE real estate market weighs in at an average of USD 5,918 – a considerable difference that adds up to major property investment benefits for the investor mindset. Even with its higher prices, Tel Aviv only fetches an annual average rental return of 2.68% versus the more desirable 5.19% that investors can bank on in the UAE.
Proximity and Connectivity
Not only is Dubai a gateway to the global economy, but by virtue of its geographic proximity to Israel, it also opens doors to Israeli citizens for business and leisure travel. Just a three-hour flight from Tel Aviv, it’s an ideal spot for a holiday home and of course, embodies the best of comfortable living, from bustling city vibes to peaceful master communities located a short distance away.
With Emirates Airlines set to launch daily non-stop flights between Dubai and Tel Aviv in the near future, the entire travel experience for holiday and homemakers is now easier than ever.
With heavy investment across a wide range of sectors like construction, transport, healthcare, telecommunications, technology and overall industrial and economic development, the UAE has emerged as a strong player in the global infrastructure space and is recognised as an attractive place to do business and invest in.
The World Bank’s Doing Business 2020 report ranks the UAE 16th out of 190 economies – Israel is currently ranked 35th – for how regulations allow freedom of business, including those related to starting businesses, obtaining construction permits, getting electricity, registering property, paying taxes and receiving credit.
The UAE also ranked ninth in the IMD World Competitiveness ranking 2020, one notch above the US and one below Canada with Israel slotting in at 26th. The ranking rates economic performance, government efficiency, business efficiency and infrastructure.
Taking all these points into consideration as well as the fact that average gross yields in Dubai’s mainstream market for mid-range homes were at an average of 6.2%, it’s no surprise that the UAE is emerging as a ready favourite for Israel’s property seeking market, driving a real estate spike for developers across the country.