Investing in properties in Dubai? Why Villa is a safer bet.
Dubai is at the cusp of exponential growth in the coming years with respect to real estate market. The rise of the villas is booming with the expectations of fetching high returns. Let us dive into why such assumptions will be validated looking at the macro fundamentals of the economy:
Growing Economy Your money is important especially when you are investing in high-end real estate especially Villas in Dubai. You are not only investing in that particular piece of land/ house, you are investing in that country's economy as well. One of the most important things to consider while buying property anywhere in the world is to consider the economic growth of that region and if the graph of economic growth has gone up in recent years, perhaps you should not hesitate much to invest your money.
One of the biggest benefits of buying a villa property in Dubai is that, the economy of this innovative city has been growing at a good pace. While rich in oil Middle Eastern countries and the capital of UAE, Abu Dhabi's economy has suffered the punch of recent oil crises, Dubai has flourished and came out as champion of planning and economic growth in MENA region.
By the beginning of year 2015, Dubai had already become one of the 5astest growing economies in the world.
Consistent Development & Innovation
Would you rather buy a villa in a city where there is no more development work going on or in a city where new innovative ideas are launched every now and then? Dubai is already well on its way to become the smartest city in the world. There is always something new about Dubai and that is one of the biggest benefits of buying property in Dubai as well.
Dubai is already home to tallest building aka Burj Khalifa and now there is going to be another tower taller than the Burj as well. The innovative ideas presented and initiated by Dubai government is a healthy sign that buying a villa property in Dubai could be the best decision of your life.
Various Villa Options
When it comes to investing in Dubai's real estate market and enjoying the benefits of buying or renting villas property in Dubai, there are variety of options available to choose from. From high-end luxury villas to budget villas, Dubai provides equal opportunity to any real-estate enthusiast.
Low Acquisition Cost
The acquisition cost in Dubai is much lower than in most other major cities in the world. As per leading reports, the average price per square foot in Dubai is USD 468* whereas in London, you will have to pay USD 3,208* to acquire same property.
Look at the chart table to get an idea how it is less expensive to acquire property in Dubai as compared to other developed real estate markets around the world:
Higher Rental Return
You will be surprised to know that Villas in Dubai yodel higher returns when compared to some of the other high-end cities around the world. The best performing areas of Dubai are generating up to 10% rental yield on average. The average rental yield in New York is only 3.91%, in London it is 3.21%, in Singapore it is 2.83% and in Hong Kong you will not get more than 2.82% rental income.
So if you want to enjoy the benefits of buying property in Dubai, don't forget about the higher rental income that your real estate investment will generate in Emirates of Dubai.
No Property Tax
There is no property tax in Dubai. Which means, once you have bought the Villas, paid the registration fee to Dubai Land Department, there is no other government tax to be paid against your property at all.
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This aspect alone has a great impact on the overall rental yield generated by your Villa in Dubai. If you were to buy property in Hong Kong, you will end up paying up to 15% annual tax on that property and the ration in Singapore will be 13%, in London it will be 2.33% and in New York it will be 2.2%. Whereas there will be 0% tax imposed on your property purchase in Dubai and that makes the choice even easier to buy property in Dubai. If you are investing in high-end luxury properties like Villas, look no further than Dubai.