Investment attractiveness of Dubai: what makes the emirate so special
Buying a houses in Dubai Hills, Downtown, JVC and other areas of the city is always a great investment opportunity. But why people from all over the world come to the emirate and purchase real estate there?
Profitable real estate in Dubai: what makes the emirate attractive to investors
Despite the fact that the traditional and long-established investment markets of European countries are still in great demand among investors interested in a profitable and safe placement of capital, the search for alternative directions is becoming increasingly important. This is explained by the fact that the portrait of the average investor is gradually changing – among private investors there are more and more representatives of the middle class who want to invest a relatively small amount of capital. Moreover, the level of financial literacy of investors is also increasing – in this regard, buyers evaluate investment areas not in terms of subjective preferences, but taking into account objective rational factors. That is why the Emirate of Dubai is increasingly in the spotlight of investors – investments in this region, in particular, in its real estate market, for a number of reasons, turn out to be a promising and attractive way to preserve and increase accumulated capital.
A good economy
Investing in real estate, especially those located abroad, implies not only the placement of funds in a certain narrow market, but also, in general, the use of the potential of the economic system of the entire state. This means that the assessment of the economic condition of the selected region should become a fundamental step in the process of making an investment decision. This should take into account not only the current situation, but also the previous dynamics of the market, as well as the predicted change in its behavior depending on the current stage of the development cycle.
- One of the undoubted advantages that determine the interest of investors in the Dubai real estate market is the steady growth rate of the emirate’s economy. Dubai is known for implementing innovative and progressive solutions aimed, in particular, at the diversification of the economy. The emirate has relatively small oil reserves, and therefore focuses its long-term growth strategy on the development of the non-oil sector. The funds received from the export of oil resources are used to finance the tourism, hospitality, trade, transport, logistics, financial services, etc. industries, which make the greatest contribution to the formation of Dubai’s GDP – today their share in the emirate’s GDP is approaching 95 %.
As a result, Dubai has been able to maintain a solid economic growth even in the face of unpredictable oil price declines, which have had a significant negative impact on the economic condition of other Middle Eastern markets. By the beginning of 2015, Dubai was among the top five destinations on the planet, characterized by the fastest economic growth.
- One of the important factors significant for understanding the current state of Dubai’s economy is the stable growth of the emirate’s population. Of course, in order to make profitable investments in overseas real estate, it is necessary to give preference to regions that serve as a center of attraction for expatriates, labor, tourists, etc. Dubai is rightfully recognized as a cosmopolitan city – at the moment, representatives of more than 200 countries of the world live in its territory, and their number is growing every day. As of 2016, the population of Dubai reached 2.5 million people, and if the current growth rate (4.7%) is maintained, this figure will reach 3 million people by 2020.
- The Emirate offers attractive conditions for businessmen, workers, office employees and other categories of expatriates to build a career and develop their own business. This, in turn, creates a stable demand for a variety of real estate in the emirate: not only residential and commercial premises, but also hotels and other types of hotel real estate. At the same time, market analysts note an increase in interest in hotel-type apartments – this is a temporary accommodation option for people who come to the emirate for a short period of time (for example, to participate in industry exhibitions and conferences), which is optimal in terms of price and quality of services provided. That is why the purchase of apartments is becoming an increasingly popular direction for the placement of investment capital, and the construction of these properties, in turn, is becoming an increasingly common area of activity for developers.
Real estate agency in Dubai
Ax Capital real estate agency is there for you with the various of investment options. The specialists of the agency will help you navigate the real estate market of the emirate and thinking over the possible scenarios (renting the property out, selling it in a couple of years with a profit, or living there) help you decide on the final choice. Visit their website and start your search now.