Real estate investing is a recognized long-term investment in Dubai and since 2002 the most populous city in the United Arab Emirates (UAE) has become a hub for real estate investors. Before starting to invest in, an investor looks for ways, places and outlets to make a safe investment.
AREAS IN WHICH TO INVEST
i. Residential Investments: Residential investments in Dubai generate rental returns for investors and are a popular choice. In 2017 alone, 69,000 real estate transactions were concluded in Dubai, for a total of over AED 285 billion. 2016, the total of AED259 billion was achieved through 41,766 transactions.
ii. Hotel investment: Another investment outlet in Dubai is investing in hotel real estate. The investor purchases a hotel room and since the room is occupied by guests, the investor receives regular rental income. Real estate investment in a hotel in Dubai is considered a stable investment choice. In fact, the tourism industry is growing and continues to hold a larger share of the country’s GDP every year. Dubai hotel investment is also a fully managed asset class. Therefore, the hotel management company is responsible for maintenance, advertising and other daily affairs.
BEST LOCATION FOR INVESTMENT
One of the main factors in choosing an investment property is its location. This can determine the amenities close to the property and therefore is an important aspect that investors should consider before making the decision to invest in Dubai Investing in Dubai properties close to landmarks, such as Dubai Marina or Business Bay, are a preferred choice among recent investors. Some of the best places to invest in Dubai are offices, shopping malls, or nearby tourist spots.
i. Dubai Marina: Dubai Marina is a thriving shopping center with gardens adorned with beautiful towers. According to Property Finder, it has consistently ranked number one since 2011 as one of the most desirable areas for real estate. Many people traveling for business or for short stays prefer to stay in the Dubai Marina. In addition to its water view, Dubai Marina is a great choice when it comes to investing in Dubai as it is located close to the Dubai Media City and Dubai Internet City business offices. This attracts many businessmen, who prefer to be close to their place of work and in a prestigious area that offers plenty of community amenities and the famous Dubai Marina Walk.
ii. Dubai Bay & Downtown: Home to the world’s tallest tower and largest shopping mall, the landmarks of Downtown Dubai are internationally renowned and draw millions of tourists and visitors year after year. The name is Dubai’s Business Center, located in the center of Dubai, these areas are two of the main tourist destinations in the United Arab Emirates. Both sites have great potential if you want to invest in Business Bay Dubai or Downtown Dubai.
iii. Barsha Heights (TECOM): Formerly known as TECOM, Barsha Heights is home to multinational and Fortune 500 companies including BBC World, Microsoft, HP, CNN, Reuters, CNBC and others. The area is full of hotels and residential buildings suitable for anyone looking to invest in Dubai. It is the best choice for visitors as it is located in the heart of “New Dubai” and is considered a business center.
iv. Dubai Sports City: Dubai Sports City was launched in 2003 as a sports center in Dubai, hosting academies of golf, cricket, hockey, soccer, swimming and rugby to name a few some. Close to major Dubai roads and just 15 minutes from the highly anticipated Expo 2020 pavilion, this is a recommended choice for investors as millions of visitors are expected to arrive in Dubai for Expo 2020.
v. Jumeirah Village Circle: Considered one of the fastest growing venues in Dubai, Jumeirah Village Circle is also a short drive from the Expo 2020 pavilion and major Dubai commercial attractions. In the first three quarters of 2015, it was ranked second in travel rates in Dubai and is only 20 minutes from Al Maktoum International Airport. According to the Bureau International des Expositions, Expo 2020 will attract millions of visitors to the country. JVC’s central location is expected to increase demand for hotel rooms during and after Expo 202 0, which will boost investment in Dubai.
REAL ESTATE INVESTMENT COMPANIES
Choosing a reputable developer is as important as investing in a good location. Investing in Dubai with a company that is well known in the region and offers the best investment opportunities is crucial. After choosing a suitable asset class property, an optimal location, and a suitable developer or hotel management company, an investor can be assured of making a safe investment in Dubai.