The real estate market in Dubai is one of the most thriving worldwide as it expanded a lot during the last few years. The most important factors leading to the development of the real estate market in Dubai are: the tax system, the quality of the buildings and the rapidity they are built with, the demand of investors looking to set up businesses in the region.
There are many reasons why an investor or an individual would choose to invest in real estate properties in Dubai and among these there are:
While real estate markets all over the world are falling back, the Dubai real estate market has remained the same or even increased in both commercial and residential segments. Even if enterprisers and common people looking to buy a property in Dubai have been cautious during the last few years, they are still purchasing residential properties as the government has supported and assured the real estate market’s stability. The Dubai residential sector has been flourishing due to the apartments and villas purchases. Also vacation properties are also growing considerably and they include condos, villas and apartments.
The commercial real estate market in Dubai mainly consists of office spaces, shopping centers, labor houses and warehouses. The recession had an insignificant impact on commercial real estate property, as the “business capital” is continuously growing in Dubai. As investors keep coming in and companies keep developing and requesting workforce, office spaces and labor houses for immigrants are highly demanded in the commercial real estate sector. According to researchers, the request for warehouses, hospitals and shopping centers is also significant.
Several recent surveys have shown the last few years yielded good returns on investment for commercial real estate developers in Dubai. One of the main reasons this industry remains among the strongest is the development of other sectors such as retail, office and industrial ones. The residential real estate industry is also stable in terms of purchases and rentals. For investors, the income from real estate is usually a stable one, as rentals provide an 8 to 10% return on the investment in Dubai. Also, the Dubai real estate market is open in comparison to other international markets and provides a variety of opportunities in terms of investment. In special cases, such as applying for a loan, real estate can also be a good collateral.