In the run up to the Expo 2020, the real estate market in Dubai is set to enter a period of revival and will remain the focus for most activity in the region. Dubai has become the hub for real estate investors from across the globe due to the absence of property tax, strong economic growth, consistent innovation, development, safety, security, geographic proximity and lucrative rental yields. The strengthening of the real estate regulation in market also continues to increase investor confidence in the Dubai real estate sector.
With the Dubai population forecasted to grow from 2.4 million in 2016 to 3.4 million in 2020, an estimated extra 125,000 homes will be required in the next five years. Real estate developers such as Dubai Properties, Emaar, Cayan Group, etc. are reporting a strong pipeline of projects across all sectors of the market, from affordable to high end and luxury.
UAE economy will continue to remain attractive in 2017 amid recovering oil prices and growth in public and private sector activities. It is expected that UAE’s GDP will grow between 4 to 5% in 2017 – 2020 period from approximately 3% in 2016. The government’s diversification strategies away from oil reliance are also boosting investor confidence and Dubai has emerged as a champion of infrastructure planning and economic growth in the region.
Global Property Guide, a website that compiles and analyses property price performance of the world’s big economies, has reported the real estate market in Dubai offers an average yield of 7.1% across all bed categories. Dubai continues to perform well against other major cities including New York (3.91%), London (3.21%), and in Singapore (2.83%) and in Hong Kong 2.82).
The overall outlook remains positive with both developers and investors taking a much longer-term view of the real estate market. As we move into 2017, a number of emerging trends will continue to change the real estate landscape in Dubai.
The affordable housing trend continues to flourish in Dubai, with analysts reporting that almost half of property search inquiries and sales transactions in 2016 were recorded in this sector. The proposed law by the Dubai Municipality for a mandatory 15-20% of housing in future residential developments to be affordable, when implemented, may provide further impetus to this segment of housing in 2017.
While price point remains the main consideration, investors are increasingly attracted by the concept of “eco living” where quality, innovation and sustainability are integral to the development.Projects such as the Sustainable City by Diamond Developers are changing the way that homeowners and investors view the property market in Dubai. Sustainable City is the first net zero energy development in the region, with 10-megawatt peak solar installation, and 100% water and waste recycling. The project has its own solar farm within the community with solar panels across all the parking stations and the residential areas rooftops. Al Barari is another environmentally conscious community with a focus on sustainability and living in harmony with nature. 80% of the development is made up of green space that surrounds the villas.
Secure Your Investment
No matter where or when you decide to invest in the Dubai real estate market, there are huge advantages to be gained from setting up a Free Trade Zone company in Jebel Ali and purchasing your property via the company.
De Hoon & Partners offers a 360-degree service for assisting you with setting up your company, thus streamlining the processes and procedures involved in property investment.
The key benefits of incorporation with a free zone in Dubai include 0% corporate, personal and capital gains tax rates; 100% foreign ownership is allowed; all income and profits derided by the enterprise can be repatriated; business operations can be conducted in a number of currencies; and residence visa’s can be obtained.
Contact De Hoon& Partners for more information on setting up a Free Trade Zone Company.