While it may not be the natural destination for mum and dad or first time investors to consider Dubai properties, there’s no denying that the Dubai has got a heck of a lot going for it. From its strong economy to luxury shopping options, ultramodern architecture, lively nightlife scene and reputation as hub for international business, this modern metropolitan oasis ticks a number of boxes for those with the dough that are willing to look beyond Australian soil. Here are 11 reasons why Dubai properties is the smart alternative to Australian real estate at the moment.
Even though Dubai properties are subject to the ups and downs experienced by all types of investments, it is still seen a relatively steady option. Property prices and rents have recovered well since the global slowdown and the UAE’s significant income from oil and large capital reserves meant that the emirate never went into recession itself. The UAE government has also taken cues from other countries post GFC and is proactive about mitigating the chance of another property bubble for Dubai properties.
If you’re an investor that also happens to have the urge for a change of scenery then here is where buying in the UAE will really win you over. One of the biggest advantages of purchasing property in Dubai is that it makes you eligible for a resident visa. There are of course certain criteria you need to meet in order to qualify, such as the value of your property is to be valued at more than Dh 1 million (roughly 370 thousand AUD). Mortgages are allowable for the residence permit, however it dictates that a minimum of 50% of the original price must be paid off, or Dh1 million paid off if the property’s value is more than Dh2 million. The investment property must also be in a freehold area and entirely owned by the investor, plus also be liveable.
Expo Live is an innovation and partnership programme launched to fund, accelerate and promote creative solutions that improve lives while preserving our world – and in 2020 it’s being held in Dubai. The expo is due to last for 6 months and is estimated to attract around 25 million visitors from over 180 nations, majority of whom will need somewhere to rent. This is a big win for property investors and the mere announcement of the expo in Dubai has boosted the off-plan property sector. Homes and apartments near the expo are expected to receive a high return; meaning investors should be acting now in order to get a foot in the door.
Tying in with the last point is the fact that Dubai is bracing itself for a massive influx of visitors over the next decade, irrespective of variations in the housing market. With so much potential for money to be made this is a prime time for the savvy investor to start snapping up furnished apartments on short-term leases, commercial spaces, hotels, shops and retail outlets in close proximity to famous landmarks or recreational parks
Did you know that in Dubai most landlords demand that rent is to be paid upfront? This is usually in the form of one cheque, however some people do accept two separate cheques (the second is post-dated). What this means for you as an investor is that you’re afforded significant security of income. In addition to this, you are also able to safeguard yourself from dodgy situations that may occur in Australia such as tenants absconding from your property and leaving rent unpaid.
Over the past 10 years Dubai has emerged as an economic powerhouse within the Middle East, and with that comes an increased amount of trading. Now, Dubai is recognised as a leading international financial hub and re-export centre that attracts a diverse range of individuals, groups and companies from around the globe. And guess what? All these new residents need long-term homes to rent close to the CBD, and because the majority of them come from places such as Great Britain, they have generally enough cash to outlay that 12-month rental check upfront.
The luxurious Burj Al Arab Jumeirah hotel complete with a rooftop tennis court, the awe-inspiring Palm Islands and of course the worlds tallest building, the JW Marriott Marquis, can all be found in Dubai. In addition to this is a plethora of desert safaris, luxurious spas, beaches, yacht communities, skydiving centres and water parks, meaning there’s more than enough here to keep people flocking to the city and looking for somewhere to live long after the oil has dried up. Dubai is also known for its wide selection of gourmet restaurants specialising in dishes from different regions.
With abundant infrastructure and a strong economy, it’s no surprise that Dubai has one of the fastest growing populations in the world. As of mid 2016 the city’s population was 2.5 million, a figure that is expected to more than double in 2030 and lead to an increased demand for housing. To cater for all the new residents, the Dubai Municipality has indicated that an average of 3,500 dwellings should be built per year to meet the need for new housing. This is bound to open up the market for property investors from all over the world looking for locations that show promise beyond the next decade.
As an Australian investor this must have massive appeal. The fact that Dubai has no income or capital gains taxes makes it an incredibly attractive place for savvy investors to work and play the Dubai properties market. For those that have invested in a foreign property market before and been subjected to capital gains tax, you’ll surely appreciate what a huge money saving advantage this is.
Dubai was recently named as one of the safest cities in the world, alongside other capitals such as Helsinki in Finland and Reykjavik in Iceland. As a property investor this is will definitely factor into your international property hunt, and bode well with buyers that are accustomed to a high degree of personal security and protection in their home country. Even incidents of petty crime are rare since the UAE has developed into an economic and political safe haven and a beacon of stability in the Middle East.
The city of Dubai is an innovative urban heavyweight that’s always looking forward when it comes to the state-led development of its infrastructure, transportation, the economy and of course it property sector. In less than a generation, Dubai has transformed itself into a major centre for investment, commerce and high-end culture. It now benefits from proactive, visionary leadership that has turned this small city into an important international entrepot. Dubai always has something new in the works and is continually reinventing itself to appeal to changes in global trends. For investors, the city has the perfect platform from which to build a diverse property portfolio and reap the benefits of its perpetual intercontinental appeal.