Dubai’s real estate market is proving itself to be a positive and profitable market for international investors as the emirates moves closer to World Expo 2020.
Investments from all over the world have poured in Dubai real estate market and mega projects were launched in year 2015 as well. There is still much to be explored in terms of investment opportunities in Dubai.
The total number of real estate transactions during 2015 were 63,719 in year 2015 and a total of US$ 72.7bn were invested in Dubai’s real estate market. This is an 8% increase as compared to investment inflow of 2014.
Due to high yields offered by properties in Dubai, strong investors are very much interested in this market. The average yield is going as high as 8% in most communities of Dubai as compared to highest average yield of 4% in London.
The expected economic growth is expected to continue at the rate of 3.5% throughout this year. This is a phenomenal projection specially considering the downfall of oil prices all over the world. During last few years, Dubai has diversified its economic sector and instead of relying on the oil money, most of the investment in Dubai comes from retail, logistics and real estate sector.
Many projects which were on hold since the crash of 2008 have started becoming mobilized in previous years. Nakheel, which is a government owned master developer has relaunched its infamous project, Palm Deira, and many new developments have been included in the project this time. In addition, many leisure and hospitality projects have been announced by Nakheel.
Dubai has become one of the most innovative cities around the world and that is because of the trust that investors are showing in the emirates. There are air-conditioned walkways to the metro, Dubai police uses super cars to perform its operations and drones are being used for document deliveries to the government offices.
There are many great projects in pipeline as well. Dubai is planning to built a 3D printed, fully functional office and a museum of the future as well. Due to tech friendly and innovative policies by the government, new and advanced businesses are opening in Dubai.
With more upcoming projects in Dubai and the investment that will be provided by the Government, Dubai is on its way to become the top real estate investment destination for investors around the world.