Buying property in Dubai: Three Drivers for Investors

Buying property in Dubai is considered to be the most lucrative investment. There are three drivers that have impact on investors’ decision to purchase the emirate’s property: the economic growth, property prices and World Expo 2020.

Dubai UAE, 05 November 2014 - Dubai has strengthened its positions as a leading tourist and business hub in the globe. Every year a great number of holidaymakers and business tourists visit the emirate. As a result the demand not only for hotel rooms and apartments but for commercial and residential property increases.

The emirate’s real estate market is performing very well, thus, buying property in Dubai  is considered to be the most lucrative investment.

According to official figures during the first two quarters of 2014 Dubai Land Department registered over 30,000 real estate transactions amounting about AED113 billion. It proves the great interest to Dubai property especially amid investors. There are three drivers that have impact on investors’ decision to buy property in Dubai.

Economic growth

Currently Dubai economy recovers and demonstrates steady growth. The main share in the emirate’s gross domestic product falls to the aviation sector, tourism, the retail sector and the real estate market.

According to the consultancy Phidar Advisory the emirate’s economy growth can reach 5.6 per cent this year. The experts consider that Dubai performance can approve its status of the economically stable region that encourages overseas investors to buy property in the city. 

Dubai property prices

The report from JLL revealed that during last year the value of Dubai property was constantly growing. But in the second quarter of this year the rates of price and rentals growth slow down slightly. The market experts told about stabilization of the property prices that was caused with regulations taken by Dubai government to keep speculation growth and avoid economic recession.

Nevertheless, the prices for Dubai property surged by 36 per cent on annual basis while rental rates increased by 24 per cent. It proves that buying property is a long-term investment returning a good profit.

The leading analyst state with certainty that the property prices will continue its growth, thus, most investors looks to put their capitals into Dubai emerging real estate market.

World Expo 2020 

The success in the bid to host Expo 2020  not only influences on finance state of the emirate but encourages investors’ confidence to Dubai real estate market. The experts believe that this global event will have a positive impact on the emirate’s economy and real estate sector.

In the run-up to the world exhibition Dubai plans to implement several big developments in order to attract more guests to the emirate as well as investments.