As the oil price is declining day by day, investors from the Middle East are losing confidence on oil & gas sector. Investors specifically from Saudi Arabia, Kuwait, Qatar, Bahrain and Oman have good investment capability has started looking for alternate investment options.
Among all the economies of the Middle East, only Dubai looks brighter. With a diversified economy supported by an able leadership, Dubai has become a huge investment hub. If you are an investor from the Middle East looking to invest in the right place, Dubai real estate is undoubtedly the best sector.
Amid the declining oil prices, Dubai has recently approved a deficit-free budget for the year 2016. It is the only economy in the Middle East which remains unaffected by the oil price. HNWIs across the world trust Dubai as it is not dependent on a single sector. It has diversified its economy and reduced the dependency on oil. Non-oil sector contributed 68.6% of the GDP and is expected to reach 80% in 2021.
Why investors should invest in Dubai real estate?
Increased Real Estate Sale in 2015: Real estate sale in Dubai crossed more than AED 267 billion in the year 2015. Dubai saw a Y-o-Y increase of 8% in real estate sale with a total of 63719 transactions. In 2015, Dubai saw more than 48,000 sale transactions worth AED 130 billion and more than 12,000 mortgage transactions worth AED 117 billion.
Comparatively affordable with high returns: Dubai property is affordable with high rental returns. In some cases, Dubai real estate is far better than international standards. Over a five year period till 2014, prices of prime home in Dubai saw an increase of 59% which is better than other big cities. London saw an increase of 52%, and New York gained 47%.
Property Demand expected to rise: The tax-free environment, duty-free imports and other benefits attract many individuals and companies to Dubai. With the influx of more companies and people, demand of the real estate is also increasing day by day, leading to the increasing demand of apartments, villas and townhouses.
Positive Investor confidence: Dubai is house to many high net worth individuals. The tax-free environment attracts more investors from across the world. Approximately, 19,848 investors from across 142 countries bought property in Dubai during H1/2015. More investment is expected to come in 2016. According to a report, 89% of High ultra-high-net-worth individuals (HNWIs) in the UAE are positive about the economic prospect.
EXPO 2020: Ahead of the EXPO 2020, Dubai has started plans to welcome 25 million visitors to the mega event. In order to cater to the need of visitors, businesses are gearing up. Investments have started flowing in to take advantage of the opportunity.Post Property Post Requirements Investment Options