Dubai 'remains one of the best places to invest money'
Dubai is one of the world's most popular locations for successful property investments, for both local and international buyers. The real estate market in the emirate has continued to achieve a steady performance and sustainable growth, due to the fact that demand for property in the region continues to rise.
Owners can enjoy the perks that come attached to Dubai's healthy property market, such as strong rental yields and high occupancy rates, as well as being safe in the knowledge that they are making a sound investment for their future.
Real estate leader
The Dubai Land Department (DLD), an organisation built to safeguard the property rights of the emirate, is on a mission to turn the region into a global leader for attracting property investors from near and far - something that has so far seen great results.
In an interview with Arabian Business, Majida Ali Rashid, assistant director-general and head of the real estate investment management and promotion centre at the DLD, said: "The real estate market has shown a clear ability to gain momentum from year to year, in addition to maintaining sustainable growth, as well as the trend towards maturity."
She also referred to a report published by her organisation back in January, which revealed that the total value of real estate transactions in 2014 exceeded AED218 billion (£37.9 billion), across 53,871 separate deals. It also noted the rich diversity in the market, with transactions happening all over Dubai, indicating how resilient the sector is.
"Dubai is the ideal investment location in the Middle East, and is also competing with top investment cities in Asia and Europe. Dubai has viable components to assure the stability of the sector on the long term, regardless of the conditions of oil prices and other disorders.” she added.
Demand remains high
Demand from both local and international investors remains high for Dubai's property market and analysts expect this to continue due to several factors, such as foreign direct investment, the creation of new businesses in the emirate and it becoming the host for the World Expo 2020.
The latter will act as a catalyst for development in Dubai, with a number of mega projects already underway, such as Dubai Parks and Resorts' theme-park complex and the extension of the metro system.
Overseas investors driving demand
According to research from Deloitte, investors from overseas will drive demand in Dubai's residential market over the course of the next year. The study reveals that transactions in the market are at a sustainable level, which reflects a long-term trend in the sector.
The Real Estate Predictions Report from the firm noted: "Affordability, for both nationals and expatriates, will gain more attention in 2015 and areas such as International City and Dubai Sports City, where more amenity is planned, will continue to experience strong demand."
Looking at the hotel industry, the research predicts growth of between seven and nine per cent in international overnight visitors in 2015 - driven by expansion of Dubai's tourism offerings.
In the retail market, Deloitte has forecast that the emirate's status as a leading shopping destination globally will drive demand from international and world-class brands, including Apple, which plans to open a new store later this year. Super prime malls will experience further growth in tourist numbers, while residents will be more attracted to convenience shops.