Why 2019 is the best year to invest in Dubai Real Estate?

Ellington / Ellington Properties Dubai Blog / Why 2019 is the best year to invest in Dubai Real Estate?
September 22, 2019

For those who are in the know, commercial real estate has been the preferred investment method for quite some time. There are good reasons for this: Commercial real estate can generate a high return on investment (R.O.I.), as well as an extremely stable tenant base.

If you had never considered investing in Dubai’s commercial real estate before, 2019 might be the time to do so, with several trends that will further strengthen this sector. Let’s look at the booming real estate business market in 2019.

Why invest in commercial real estate?

 In general, the property is an investment option valid for several reasons as it offers good returns on long-term investments. The value of the property may vary but has been shown to increase steadily over the long term. Consolidate this with rental earnings, which can be an essential part of your return on investment and can offset the costs of mortgages. Real estate investments are a much more significant investment than placing your funds in savings accounts. It is the sector that also has a much more stable investment than equity and stocks, which can sometimes be hazardous.

Commercial rental income is generally excellent and durable. Moreover, the tenants of the business tend to be long-term, as companies will establish a location and intend to remain there for as long as possible. Finally, commercial real estate is a rare and indispensable resource, in other terms, the value of properties will almost certainly increase over time.

Now that we fully have an understanding of how lucrative real estate is and why one should invest in it. Let’s have a look at Dubai’s real estate as the best place to invest in 2019.

Dubai as an option

 With attractive real estate prices and flexible payment plans in the city, more and more people are looking to buy and invest in real estate in Dubai.

When buying real estate in Dubai, investors will find the seller or buyer market. Currently, an extensive portfolio of properties available in the Dubai market has led to affordable prices, tilting the market in favor of buyers.

The most attractive property prices indicate that Dubai Real Estate has experienced a significant increase in the number of people investing in it by 2019. Another reason to invest in Dubai is the fact that neighborhoods residential are more established. Buyers know what to expect from the property, this has led the investor confidence’s increase in purchasing real estate in Dubai.

Want to know the benefits of investing in Dubai? Investors looking for buildings to buy in Dubai can expect a return on investment of 5% to 6% for accomplished buildings. The market report for the first quarter of 2019 shows that the profitability of the Dubai Marina apartments is 6.4%, while the central Dubai apartments offer rental yields of 5.4%.

This is comparable to a return on investment for similar properties of less than 2% in Hong Kong, while in London and Singapore this figure is between 3.7% and 4.5%, according to reports.

How do foreign investors benefit?

 The United Arab Emirates (U.A.E.) is considered one of the safest countries in the world in 2019. It is likewise one of the significant reasons for foreign investments in real estate in Dubai. Although V.A.T. has been introduced, it does not apply to the rental income of the investor. This tax-free income is also one of the reasons why to entrust in Dubai in 2019 as a foreign investor. Finally, Dubai remains one of the best cities to visit and live in, offering the property high investment potential.

Good news for real estate investors

From EXPO 2020 to the current passed ten-years visa plan, there are several other influential motives to invest in the Dubai real estate sector in 2019. In brief, we are witnessing a tremendous increase in the number of transactions that follow the fall of real estate investment in the last five years.

Bottom Line

 Experts believe that real estate forecasts in Dubai are incredibly positive. There are several other reasons to invest in Dubai since the city hasn’t stopped developing.

The Dubai real estate has left its mark on the world map and is compared continuously with global centers such as London, New York, and Hong Kong. With Expo 2020 projects, such as the Al Maktoum International Airport taking form, and Dubai Metro extension, Dubai’s real estate market is likely to have an enormous impact in the years to come.