Inspite of the troubled times, truth remains that Dubai is still a growing city and for a city so young, it has done marvelously well in terms of building a world-class infrastructure and progressing on the Smart City initiative.
What will attract global investors to Dubai?
The technology used in construction is cutting edge and converting the desert landscape into an outstanding cityscape has been no simple task for the Emirate. Dubai takes itself seriously and is determined to create job opportunities in the areas of technology, construction, real estate and tourism. When Expo 2020 is behind it, the only growth this city aims for is upwards for its expats who come from all walks of life, from around the world.
Smart investors recognize this and are willing to pump in the cash flow to reap the yields of Dubai’s property market for years to come.
Who will invest in Dubai’s Real Estate?
Last year October, DLD recorded real estate deals worth AED162 billion ($44.1 billion) during the first nine months of 2018. The figures represented a fall of more than AED40 billion (20 percent) compared to the same period last year although the total number of transactions rose by over 2,000 to 39,802.
The top 10 investors by nationality was topped by Emiratis and Indians, followed by Saudis, Pakistanis and Brits. Residents from China, Egypt, Jordan, Canada, and Russia rounded out the list.
This year, a total of 20 exhibitions, conferences, and events in 10 countries, including the UAE, Saudi Arabia, Egypt, France, the US, Canada, China, the UK, India and Germany have been planned for the year by Dubai Land Department.
Investor activities from these countries were the reason for choosing them as a priority over other countries.
Are Dubai’s declining rentals going to discourage the investor community?
Declining rentals in Dubai’s key areas are occurring due to two main reasons:
Business Bay, International City and Jumeirah Islands have declining rentals of over 15 per cent. With new projects offering more affordable units with similar benefits and comforts, renters get competitive pricing from home owners thus resulting in this huge decline.
Al Furjan, Palm Jumeirah and Emirates Hills were among the more stable areas with 6 per cent declines. The elegance and luxury life they offer with outstanding amenities and a fully developed community are a reason they are the more preferred neighborhoods of Dubai.
One may wonder why in such a scenario the Dubai Land Department (DLD) has launched its real estate promotion plan for 2019 with the Emirate’s property investment potential showcased in 10 countries.
Dubai has received a huge delegation from the US and Singapore already this year and remains at the forefront for global investors. New projects continue to come up and investors from all around the world are showing a curious interest in this well-connected cosmopolitan city to get their slice of the pie.