Real estate investment is a recognised long-term investment, and since 2002, Dubai has become a hub for property investors.Before committing to research on how to invest in Dubai, an investor seeks the ways, the locations and the outlets to make a safe real estate investment.
How to Invest in Dubai? The Ways to Invest
Residential investments gain rental returns for investors and are a popular choice in Dubai. In 2017 alone, 69,000 real estate transactions were made in Dubai, which exceed a total of AED 285 billion. In 2016, the transactions totaled AED 259 billion through 41,766 deals. (1) Another outlet for investment in Dubai is investing in the hotel property market. The investor buys a hotel room, and as the room is occupied by guests, the investor receives regular rental income.Hotel property investments are considered a stable investment choice in Dubai. This is because the tourism industry is on the rise and continues to hold a larger share in the country’s GDP every year.Hotel investments are also a fully-managed asset-class. Therefore, the hotel management company is responsible for maintenance, advertising, and other day-to-day matters.
Best Places to Invest in Dubai in 2018
One of the primary factors while choosing an investment property is its location. This may determine the amenities close to the property and is therefore an important aspect that investors would consider before making a decision. Investing in a property near a landmark, such as in Dubai Marina or Business Bay is a favoured choice among recent investors. Some of the best locations to invest in Dubai are nearby offices, business hubs, or tourist spots.
Dubai Marina Dubai Marina is a thriving business centre with grounds decorated by breathtaking towers. According to Property Finder, it has consistently ranked number one as the most searched area for property since 2011. Many people on business or short-stay trips prefer to stay in Dubai Marina. (2) Alongside its water-views, Dubai Marina is a leading choice because it is located near business offices in Dubai Media City and Dubai Internet City. This attracts many business people who prefer to be near their workplace and at a prestigious neighbourhood which provides plentiful community amenities and the famous Dubai Marina Walk.
Business Bay and Downtown Dubai Home to the world’s tallest tower and largest mall, Downtown Dubai’s landmarks are internationally renowned, attracting millions of tourists and visitors year on year. Business Bay, as its name implies, is Dubai’s business centre. Located in the middle of Dubai, these areas are two of the main tourist destinations of the UAE.
Barsha Heights (TECOM) Formerly known as TECOM, Barsha Heights hosts multinational and Fortune 500 companies which include BBC World, Microsoft, HP, CNN, Reuters, CNBC, and more. The area has an abundant collection of hotels and residential amenities. It is a top choice for visitors, because it is set in the heart of ‘New Dubai’ and considered a business hub.
Dubai Sports City Dubai Sports City was launched in 2003 as Dubai’s sports center, hosting academies in golf, cricket, hockey, football, swimming and rugby, to name a few. Close to Dubai’s major roads, and only 15 minutes away from the much-anticipated Expo 2020 pavilion, it is a recommended choice for investors as millions of visitors are expected to arrive in Dubai for the Expo 2020.
Jumeirah Village Circle Considered one of the fastest growing locations in Dubai, Jumeirah Village Circle is also a short drive away from the Expo 2020 pavilion and Dubai’s major business attractions. In the first three quarters of 2015, it was ranked the 2nd highest for move-in rates in Dubai and is also a 20-minute drive away from Al Maktoum International Airport. According to Bureau International des Expositions, Expo 2020 will be attracting millions of visitors to the country. (4) JVC’s central location is expected to increase demand for hotel rooms during and after the Expo 2020.
Who to Invest With in Dubai?
Choosing a reputable firm is as important as investing in a good location. It is important to invest with a company that is well-known in the region and experienced on the best investment opportunities in the city.After choosing an appropriate real estate asset-class, an optimal location, and a suitable developer or hotel management company, an investor can be assured they are making a safe investment in Dubai.
Sources: (1) Dubai Land Department (2) Property Finder (3) Reuters (4) Bureau International des Expositions.