It wasn’t long ago when Dubai was considered an extremely hot place filled with sand and camels, but the last two decades have seen Dubai emerging as one of the most dynamic and popular tourist destinations in the world, especially for real estate investment. However, like any other profitable market, the real estate market of Dubai also has its ups and downs. Therefore, it’s important to know if the money you’re investing there is worth it or not. You should also know that this real estate market is highly competitive in Dubai, and you should only deal with the top real estate companies when looking for a Villa for sale in Dubai.
Let’s shed light on the positives and negatives of purchasing real estate in Dubai.
Pros Of Buying Real Estate In Dubai
- The City Is Continuously Developing
Dubai has been a hub of innovation and groundbreaking projects for the last 20-30 years, and it’s only getting better with every passing year. Famous buildings like the Burj Khalifa, the Dubai Mall, the Dubai Foundation, Dubai airport, the Palm Jumeirah Island, and the list keeps going on. The city is developing and the government of UAE is aiming to provide investors with all the relief and ease to invest money to contribute to their ever-growing economy.
- No Property Tax
The best thing about purchasing a property in Dubai is that there is no property tax.
- The Economy Is Stable
You might think the Middle East region is filled with political instabilities and problems, but Dubai is the one place that is stable and consequently, the economy is growing at a fast pace. This is why real estate business, tourism, and even manufacturing are really succeeding here.
- High Rental Yields
For any investor, the main thing is the yield they get. Properties in Dubai offer an average yield of 7%, which is higher as compared to other great cities in the world like New York, London, Singapore, and even Hong Kong. None of these cities provides even a 3% yield.
- The Demography
If you look at history, there were only around 60,000 people living in Dubai in the 1960s, whereas now this number has risen to 2.9 million. This major increase in the population is exactly why Dubai is one of the fastest-growing and most dynamic cities in the world. The demand for real estate here is really high.
The Cons Of Buying Real Estate In Dubai
- You Can Never Become A Citizen
One of the biggest disadvantages of coming to Dubai or UAE is that you won’t ever earn citizenship. You may buy an apartment or villa but bear in mind that you can’t live there forever. If you don’t get an extension on the permit, you’ll have to leave.
- No Democracy
The UAE is led by Sheikhs and the system of government is Monarchy in this region. This is why laws can be altered at any time according to the wish of the leaders.
- Oversupply Of New Developments
Since the real estate market is progressing at a high rate in Dubai, there has been a massive increase in the new developments. As a result, the supply is mostly surpassing the demands and the market is very saturated.
There’s no doubt about the fact that every place in the world comes with pros and cons, same is the case with Dubai. Although the cost of living in Dubai and not getting permanent citizenship may be the only flaws about the place, the high rental yields, the great social life, amazing amenities, no taxes, and a good stable economy are all the things that surely overshadow the cons. If you’re planning to invest in real estate and looking for a Villa for rent in Dubai, make sure you get in touch with the best real estate agencies in Dubai.