7 Good Reasons to Invest in Dubai Real Estate Market in 2023
As of now, Dubai is considered as the ideal investment destination in UAE. The city has experienced a 67 percent rise in the number of foreign property buyers. There has been a remarkable spike in the number of investors in Dubai looking to invest in a home in the emirate. As both the villas and apartments in Dubai offer different benefits, each of them is in great demand.
Some of the foreign investors in UAE are more interested in luxury housing in Dubai, while others are more charmed by the income from renting out units in coastal areas in Dubai.
1. Future Growth Potential
The Dubai property market is continuously increasing and is predicted to rise by 46 percent in 2023. According to recent Dubai property market reports, it is speculated that the price of the property market in Dubai will increase by 29 percent in 2023.
The general trend for the Dubai property market in the upcoming year is growing upward. The prices are anticipated to increase by a minimum of 10-15 percent. The report also suggests that some areas in Dubai have encountered a growth of around 46 percent.
2. Stable Exchange Rate
Most people are unaware of the influence of the stable exchange rate on the Dubai property market. Stable exchange rates facilitate long-term growth in the Dubai real estate market.
The currency of the United Arab Emirates is the UAE Dirham. U.S. dollar value determines the dirham’s value. The currency is considered to be one of the most stable currencies in the world. U.S. dollar exchange rates have been stable for over two decades for the UAE dirham.
3. Buying Off-Plan Properties In Instalments
In Dubai, usually, an off-plan property this not completed yet is mostly available at low prices. Because of this particular reason, both the buyers and the investors are keen to invest in these options as these properties offer them great opportunities for foreign investors. Dubai government’s favorable laws also help the buyers or the investors to benefit by investing in off-plan properties in Dubai.
4. Rental Housing in Demand
According to the latest data from the sources, the Dubai housing rents on average have increased by 27.3 percent in the year until November 2022. The Dubai apartment rents on average have spiked by 27.6 percent and the villa rents in Dubai have gone up by 25.4 percent.
5. Proper Market Regulation
The Dubai property market has been recognized among countries in North Africa and the Middle East region as the most transparent property market in the world. As of now, the real estate market is performing vigorously and there are no signs of any decline.
The Dubai government is continuously working on implementing new rules and measures to improve transparency in the market.
6. Best Real Estate Location
What makes Dubai a perfect location for commerce and international trade is that it is located at the crossroads of Africa, Asia, and Europe. This tactical location has greatly helped Dubai in becoming a hub for tourism and business thus increasing demand for Dubai real estate.
7. Rental Yields
Dubai shows outstanding returns on real estate investment in Dubai, even greater than New York, London, and Hong Kong. The gross rental yield in Dubai ranges between 6-10 percent with a return of around 7.5 percent on average. Not to miss that Dubai real estate prices are advantageous in comparison to other major global cities around the world.
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