Can’t Decide on Where to Invest Money in Dubai?
20 years ago, Dubai was known as another desert city. Now, it is one of the world’s top cities for direct foreign investments, hosting the world’s tallest tower and largest mall.
Dubai’s imprint in the investment sector has grown over the years due to thorough planning. The case is still the same - as Dubai plans to be a ‘Smart City’, the happiest city in the world, and the host for the World Expo 2020.
Deciding on where to invest in Dubai has been crossing the minds of many investors. The major determiners that drive investors are the type of investment, the location, and the developer of the investment property.
Investment Type
Investors are advised to consult with investment professionals in their market of choice to make safe investment decisions.
The question of where to invest money touches upon more than just a property’s location. It hinges on the type of sector and investment as well. Many seek no risk, high return investments, and therefore the question arises on where to invest money safely, instead of just where to invest.
In the United Arab Emirates (UAE), hotel property investments are witnessing exceptional growth, and are expected to hit a record this year. The largest market for hotel investments in MENA is the UAE and the value of the hotel industry is expected to reach a total of $8.4 billion worth of contracts in 2018 according to the Director of Content and Analysis at MEED Projects.
Numbers in UAE are expected to increase even further in the coming years in anticipation of the Dubai Expo 2020, the expansion of the Dubai metro, the launch of the Guggenheim museum in Abu Dhabi and the awaited operation of the world’s tallest hotel in Dubai. Dubai is also working towards becoming a world leader in artificial intelligence. All of these factors, and many more, have allowed the tourism and hospitality industry to grow at an extraordinary pace as compared to the previous decade. From a desert to an international business hub, the UAE has exceeded the expectations of everyone, attracting many tourists to visit the jewel by the Gulf.
With established specialists and names in the hotel industry dedicated for hotel investments, hotel investments in the UAE, and particularly in Dubai, are considered an optimal choice for investment by many.
Location of a Dubai Investment
There are many hotels in Dubai, as much as 10 or more in one neighbourhood (such as Barsha Heights). Because of the overwhelming variety, some investors find it difficult to choose a property that is most suitable for their financial needs and goals.
Despite this, location remains an integral factor to contemplate when deciding on where to invest money in Dubai. This is because the location of the hotel property determines the amenities surrounding it, such as malls or restaurants, as well as its connection to the rest of the city. These factors are considered by the guests and visitors of these hotels.
Therefore, investing in a lively neighbourhood that is well-connected to the city or investing nearby touristic hotspots has become an investors’ favourite.
According to the Property Monitor rental database, popular choices among tourists and residents alike are Emirates Living, Dubai Marina and Downtown Dubai. The Palm Jumeriah also joins the list for luxury living.
Reputation
The reputation of the investment management company that an investor chooses is essential in making an informed investment decision. This can be assessed by the number of years that the company has been based in the country, testimonials from its previous clients, and its local repute.
For those choosing to invest in Dubai, the Real Estate Regulatory Agency (RERA) has implemented strict rules to ensure that the investor’s rights are met under the law.