The Investment opportunities in Dubai
Dubai which 50 years ago was a sleepy fishing village, today it is among the top five of the fastest growing cities in the world. About 2.2 million people are living in this oasis in the middle of the desert and their number is growing by an average 5% annually.
Dubai can boast the best and the most modern infrastructure in the region – beginning from transport systems and finishing with communication networks. Its real estate and labor markets are flourishing and the standard of living is one of the highest in the world.
History of Dubai can be divided into two main parts, before the discovery of oil fields and after. The first Bedouins settlements on the territory of Dubai were faced with great difficulties in adapting to the geographical location. Daytime temperature was exceeded 40 degrees the settlers experienced constant lack of fresh water and food. Convenient coastal accommodations had made this area a major trading harbor. All this, on top, and the introduction of tax incentives, the Government of the UAE attracted the attention of the Portuguese and British, which was the beginning of formation of the new multi-cultural city and the greatest shopping center in the Persian Gulf.
Its evolution is obliged to Dubai in the first place, Sheikh Rashid bin Saeed Al Maktoum, who laid the foundation for economic transformation. Dubai has gained status as one of the leading marinas in the Middle East improving port infrastructure, developing and increasing the harbor. During the period of administration, it was founded beginning of free trade. With the discovery of oil deposits in the mid-60’s all the projects received strong financial support. Dubai owns only 5% of all, the oil reserves are very limited, so Sheikh economy advisers planed the perfect plan for the development of Dubai and the use of financial capital from the production of black gold and turning it literally into gold.
REAL ESTATE OPTIONS IN DUBAI
When investors want to invest in real estate, which will generate income consistently and don’t require a lot of participation, they often stop their attention to residential real estate. Apartments or house can be taken for a long time and without any effort to receive a stable income, even in another country. Also, using the real estate company you can rent your property in the short term and getting even higher returns.
Hotel real estate
Buying hotel property removes all the difficulties associated with the ownership of real estate abroad. In fact, the investor needs only appear once in Dubai – at the time of the transaction but it isn’t always required. In the future, all the organizational issues are taken by the hotel operator, which falls at the disposal of the hotel after the date. Experts in the field of tourism on their own provide a high level of occupancy, using tested techniques for years. Therefore, investors may receive passive and in some cases a guaranteed income that cannot be obtained in the case of the rental of residential property.
Commercial Real Estate
Excellent prospects for the development isn’t just residential real estate market in Dubai but the commercial real estate sector, which includes office space and other facilities purchased for a successful business.
Thanks to a safe location, good infrastructure and a stable economic situation, Dubai has gained status as a world business center. Each year more and more companies seek to open their offices in this dynamic city. As a result, demand for comfortable and fully equipped office place is growing.
Luxury Real Estate
Luxury apartment, comfortable houses, luxury villas are a dream that becomes a reality in Dubai. Luxury real estate in the Emirate is very popular not only among the residents, accustomed to luxury, but also among foreign investors, who estimated that investments in this type of real estate pay off many times over.
The main advantage of investing in the elite real estate is prices. Prices in Dubai are considered much lower than prices for luxury apartments or luxury villas in America or in Europe. It should be noted that local developers who created the luxury cannot be compared with some elite apartments or villas in any other part of the world.
According to the survey Global MetroMonitor, a high rank in Dubai dues to the growth of GDP per capita by 4,5 % and employment growth at 6,5% in a year.
|CITY||COUNTRY||ECONOMY||GROWTH IN GDP PER CAPITA IN 2013-14 RESPECTIVELY||THE INCREASE IN EMPLOYMENT IN 2013-14||RATING AND ECONOMIC INDICATORS IN 2009-14||THE EXTENT OF RECOVERY AFTER THE RECESSION|
|DUBAI||THE UAE||developed||4,5%||4,7%||172||partially restored|
Research of Brookings Institution has shown of all the major metropolises studied only Dubai has the potential for further economic growth, in contrast to its competitors.
|RATING IN THE REGION||RATING IN THE WORLD||CITY, COUNTRY||ECONOMY||GROWTH IN GDP PER CAPITA IN 2013-14||THE INCREASE IN EMPLOYMENT IN 2013-14||RATING AND ECONOMIC INDICATORS IN 2009-14||THE EXTENT OF RECOVERY AFTER THE RECESSION|
|1||5||DUBAI, THE UAE||developed||4,5%||4,7%||172||partially restored|
|2||25||RIYADH, SAUDI ARABIA||developed||1,9%||3,9%||79||restored|
|3||35||JEDDAH-MECCA, SAUDI ARABIA||developed||2,4%||3,4%||153||restored|
From the report Knight Frank (the world’s leading independent firm advises on real estate), in 2014, in Dubai Investments Park (DIP) registered an increase of 40% in rental income. In Jebel Ali Free Zone (Jafza) rental income rose by 29%.
According to TRED analysts (Tasweek Real Estate Development), in the first quarter of 2015 rent of studios and one-bedroom apartments fell by 3% and rental apartments with two and three bedrooms have risen in price by 5-10%. Renting office place also increased by an average of 5%.
Investors have invested more than 53 billion dirhams in real estates of Dubai property in the first half of this year, according to data published by the Dubai Land Department (DLD).
19 848 investors from 142 countries carried out property transactions for the first six months of 2015 year.
Investment citizens of UAE were the largest. They conducted 2 130 transactions in total 11,5 billion dirhams in the first quarter of 2015 year. The Saudis were in second place in the list of real estate investors having made 999 deals worth more than 3 billion dirhams. Investors from Kuwait are in the third place and after them are the citizens of Qatar, Bahrain and Oman.
POPULAR AREAS FOR INVESTMENT IN THE EMIRATES
Tecom is one of the fastest growing and developing areas of Dubai. Here are located main offices of many international corporations, working in the field of IT, information and media, including Microsoft, IBM, Canon, Siemens, BBC World and so on. Real estate in Tecom area has such success with a huge number of offices of international corporations.
At this point in the Tecom area it employs about 20 000 professionals, most of them are immigrants from around the world. This area of Dubai is constantly evolving. Tecom has an excellent location in terms of the transport interchange, so that local people can without any problems get to other areas of Dubai. All this leads to a high demand for real estate in the Tecom area and, thus, the great prospects of investments.
Dubai Marina is one of the best areas for living and recreation. The main part of the harbor is occupied residential complexes and hotels with wonderful views of the coast. For this type of locals and visitors are willing to pay quite a lot, so in terms of investment, this is incredibly promising area of Dubai.
There are luxurious and comfortable hotel Complexes, the cost of which is understandable due to excellent facilities.
Secured locals acquire own yachts that can moor in the harbor just a few steps from the house. Dubai Marina has all the necessary infrastructure, restaurants with outdoor terraces, shops and popular Arab and European brands, as well as convenient transportation, that allows easy access to other areas of Dubai.
Dubai Sports City
The Dubai Sports City became the center of Dubai’s sporting life. Here are the golf academy, fields for playing cricket and hockey on the grass, football and rugby fields, swimming pools and other sport facilities. Many athletes settle in the Dubai Sports City, to be able regularly attend trainings. But ordinary people are infected with the spirit of the sports area, so they join various sections or at least starting regularly visiting the gym.
But the Dubai Sports City attracts not only the sports facilities. This area has a very good location, allows you to quickly get to all parts of Dubai. It became one of the most popular areas for the construction of residential and commercial real estate, with each year is rapidly proliferating breadth and upwards. Now the city has everything you need for a comfortable life: shops, modern shopping malls, schools and hospitals. Employees of office centers located here trying to buy an apartment as close to their place of work, increasing the cost of real estate in Dubai and making it attractive from an investment point of view.
The Dubai Sports City built unique objects that combine commercial and residential real estate within the same building. One of the clearest examples of such objects is the The Bridge complex from The First Group developer. It completely eliminates the problem of traffic jams typical in all modern cities. The owners of property in the complex may open an office of their own company in the same building in which they live. So, in order to get to work they need to use only the elevator and do not even need to go out before the end of the day during the hottest hours in Dubai. Similar investment properties are now considered the most promising business districts of large cities.
Getting the right to host the World Expo 2020 exhibition transformed the economy of UAE over the next five years. All over the country the construction works have been started, which are worth of $940 billion.
As a result of World Expo 2020 in Dubai are also expected to increase trading. In 2013 total trading in the Emirates reached $380 billion and it is projected by Dubai Trade government organization that in 2020 its volume will reach $1,09 trillion. The exhibition will have a positive effect on the hotel real estate sector in Dubai as a result of substantial investment, which corresponds to the government’s tourism strategy – TourismVision 2020. The aim of the strategy is to attract 20 million tourists annually by 2020 and profit from their stay in the Emirates of $82 billion (in 2013 this figure was $27,2 billion)
Learn more about the EXPO 2020 can be here
PROJECTS Hard Rock Hotel Dubai Marina and Dukes Oceana Dubai
Hard Rock Hotel Dubai
Hard Rock is one of the most famous brands in the world. Selecting a location for the construction is obvious. After all, Dubai is canvas for creativity. Unusual and extravagant projects are always approved and welcomed. A masterpiece in the 101-floor scheduled to be operational in the third quarter of 2015 year. The location plays an important role: Hard Rock Hotel is located 30 minutes from Dubai International Airport and Al Maktoum International Airport, walking distance to the beach and in the heart of the popular Dubai Marina District.
From investment part it is expected to get a profit of 8% per annum. It is worth noting that the hotel takes care of all the work for the care and maintenance of the building. The owner can stay in the hotel for 21 days in a year, taking advantage of all apartments are already sold on the primary market and is only available to a limited number of apartments in the secondary market. Hurry up!
Considering the option of investing in Hard Rock? – read this article.
Dukes Oceana Dubai
New project Dukes Oceana offers excellent offer high yield investment with a guaranteed income. 5-star hotel is located on an artificial island The Palm Jumeirah. 373 rooms in 13 floors located just 10 minutes drive from Dubai Marina and Sheikh Zayed Road. In addition to the hotel Dukes Oceana has 185 studios and 42 fully furnished one-bedroom apartments.
The hotel complex Duke Oceana offers investors a guaranteed income of 10% of the amount invested per year for 5 years after commissioning. The opening will take place in the 1st quarter of 2016 year. Now the building is built and inside there are finishing works.
During the year, you are given the favorable schedule of investments until the opening of the hotel. The first installment is only 10%! For 5 years of the lease you will return 50% of the amount you invest today. But considering the steady increase in the market value of the apartments, the profit may exceed 15%.
Dubai in 2014 was attended by 11 629 578 tourists, which is 15,6% more than in 2013. Investors say the rapid growth and future trends in real estate in Dubai. World Expo 2020 stimulates the market, creates a strong demand for commercial real estate.
In addition, real estate in Dubai is offered at more affordable prices than in cities such as Hong Kong and Singapore, which have traditionally sought foreign investors are interested in minimizing the tax burden on their assets.
ONE OF THE MAJOR BENEFITS AVAILABLE TO INVESTORS IN DUBAI IS A TAX-FREE TRANSPORTATION.
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