UAE a diverse, growing economy with investment incentives such as 0% corporate tax, 0% income tax and up to 100% foreign ownership in free zones are but some of the advantage’s that attract investors to the UAE. To find out more read below.
Dubai an emirate within the UAE is as an example of being the most recognised city with a high demand for commercial, residential and tourist accommodation. The city supplies the huge demand needed within UAE for property in general while trying to keep the undersupply at minimum.
Benefits of UAE investment.
The UAE is known to be politically and economically stable within the Middle East region. It is located strategically between Europe, Africa and Asia with over 1000 flights weekly to most countries worldwide.
The country has first class modern infrastructure which includes metros, trams, strong private local and international healthcare facilities. Education is at one of the highest levels in primary, secondary and collegiate education catering to various ethnic and linguistic groups that are internationally accredited.
Crime rate is at an all-time low within all the emirates compared to most parts of the world. The United States of America has stated that crime is not a problem for travellers to the UAE. UAE is considered to be one of the safest places within the Middle East, Asia and Africa.
It ticks all the boxes for a safe and secure investment and being one of the world’s fastest growing economies with an average annual growth of 11% between 2005 -2007 and 4.1% 2011.
Tourism, playing a very important part for the UAE has quickly grown over the years. Luxury services, amazing weather all year round and unlimited activities definitely keep you busy on your trip to UAE.
UAE holds a unique lifestyle modern with luxury in all directions housing the planets mega projects which are complete and under construction scheduled for the Expo 2020.
Available sectors for a safe and secure investments would include the precious metal industry, general trading, hospitality sector, Tourism industry, Oil and gas and obviously the biggest sector of all real estate!
Dubai's Magnificent Resiliance
Since the past decade or more the UAE has successfully enticed investors globally, with its policies of zero property income tax or capital gains.
Policies as such still in place, could mean investors continue to show trust in the UAE economy and prices of real estate continue to hike up a long way ahead.
The worlds largest US based real estate brokerage, CBRE, recently in its report rated Dubai sixth while ranking average monthly rentals. Whereas, when ranking price tags of houses, Dubai still did not feature in the top ten list of the world.
The report also stated Dubai’s rental yields at average 6.5% which is ranked seventh in the world.
In Sept 2012 Arab news referred to Dubai as the Monaco of the East and the Switzerland of the Arabs, Whereas three years later still, the comparison of Estate prices between the two is at one to ten ratio respectively.
Not to state that Dubai is at a bargain but in a relative state it still proposes much better prices in comparison to all major cities of the world. In fact compared to any other substitute of the world Dubai offers the cheapest estates per square metre, and highest rental returns, which means that house prices will continue to rise even if the world enters a state of depression.
Rent controls by Dubai government on the UAE housing market suppress the rents,these controls are already abandoned but Abu Dhabi. Rental yields would have been even higher if these rents controls were to be abandoned, rising further from the current yield.
Also note able is the fact that despite of Oil prices reducing to half of their opening prices a year ago, rents have remained in a good position. This points to a strong demand for real estate sector in Dubai.