An investment can be defined as an asset that is owned with the purpose of generating profits or obtaining benefits from its appreciation (increase in value) over a period of time. Among the numerous investment opportunities available today, real estate stands out as a stable and profitable choice that you can make especially in a city like Dubai. Simply put, a real estate investment can be something like buying a commercial property (shops, warehouses, showrooms, etc.) or a residential property (villas, apartments, townhouses, etc.), and retaining it till its value appreciates. Besides, you can also rent out your property and generate additional income, and with commercial properties, you can set up a full-fledged business.
Through this article, we will uncover the benefits of a real estate investment in Dubai, and how it compares against the other available investment options.
Benefits of Real Estate Investments in Dubai
High Return on Investment
Dubai offers one of the highest returns in the world for real estate property investors. With the increasing influx of expats, the population is seeing constant growth, and so is the demand for properties. Consequently, the property values are on a consistent rise, assuring investors of remarkable returns in the future.
High Rental Yields
A real estate investment provides another key advantage in the form of passive income. As mentioned earlier, Dubai’s consistent population growth has increased the demand for housing which in turn results in surging rents. Thus, owning a property in Dubai is bound to bring in a good stream of passive income for you.
Dubai’s Tax Benefits
Dubai is renowned for its favorable tax regime particularly when it comes to investing in real estate properties. Property owners in the Emirate and the rest of the UAE are not required to pay property taxes or personal income taxes. This implies that owning a property in Dubai can be a far more affordable endeavor when compared to many other cities in the world.
Residency Visa Options
Over the past few years, the requirements for obtaining residency in the UAE have been considerably relaxed. The introduction of the Golden Visa is a testament to this. This visa grants long-term residency to specific categories of individuals. Property investors can be eligible to obtain the Golden Visa through a minimum investment of AED 2 million.
How Real Estate Compares Against Other Investment Options
Let us understand the benefits that real estate holds over other common investment options like gold, mutual funds, and fixed deposits.
Real Estate vs Gold
Unlike a real estate property that can be rented, gold does not generate income. Its main perk is the appreciation it undergoes in value.
Real Estate vs Fixed Deposits
Though fixed deposits are a safe investment, they are not always seen as options that can make you rich. In fact, with interest rates not being like what they used to be years ago, the returns they give are sometimes below the inflation rate. In contrast, a real estate property in a bustling hub like Dubai will generate high returns on investment plus a constant rental income.
Real Estate vs Stocks
The stock market can be volatile, and therefore stocks as an investment hold a substantial risk. On the other hand, real estate offers far more consistent returns. Remember, a property that you own won’t disappear overnight.
Hope this article has given you enough insights as to how a real estate property can be a rewarding investment in Dubai. With that being said, it is necessary to have industry experts by your side to ensure that you are putting your money in the right place and getting the most for your money. At InZone Properties, you can access the highest level of real estate expertise, networks, and market insights as well as all the assistance needed to find and secure the best investment opportunity in Dubai.
