5 reasons why 2015 is a great year to invest in Dubai

Over the last 20 years or so, Dubai has emerged from being a small trading city that not many people have heard of to becoming the business hub for Middle East and one of the most popular tourist destinations on the planet. This transition has happened over such a short period of time that people the world over have watched in envy as the beautiful city has flourished. Iconic landmarks such as the 7-star Burj Al Arab hotel and the Burj Khalifa – the world’s tallest building certainly help but it’s the dynamic undercurrent of the city that continues to impress people the most. During the global recession of 2008 and 2009, Dubai did of course suffer, and many commentators questioned whether Dubai could indeed bounce back from its financial struggles. Just a few years on and those questions and critics alike have been answered in style. The city is easily accessible from around the globe and with incredibly low crime rates; Dubai is the home (of choice) for over 2 million expatriate workers, who have helped drive the economy during this time. Together with resolute leadership from the ruling family and an almost unmatchable drive to succeed amongst its population, Dubai is primed to grow further both in terms of economic wealth and as an iconic destination for tourist and business travellers over the coming years. Based on this and a wealth of supporting social and economic factors, this year may be the year that savvy investors should take note of the opportunities in Dubai and make strategic investments. Below are five factors that support this: 1. Dubai’s Economic Recovery While the global economic recovery is gathering momentum in a steady manner across the world, emerging regions such as the Middle East have fared strongly against both Europe and the USA, where both high unemployment and low interest rates hold back the potential of a fast recovery. Dubai in particular continues to attract multinational businesses, investors and entrepreneurs to the city, which in turn has helped the population of Dubai grow by over 10% from 2010 to 2013. Couple that with a zero unemployment figure and you start to see why Dubai is such an attractive place for investors. 2. World Expo 2020 Dubai is set to host the World Expo in 2020 and in return will become the center of attention for businesses, trade departments within governments and tourists for almost one entire calendar year. The event will also create over 250,000 jobs and is expected to attract over 25 million tourists during the expo. Demand for both long term and short term accommodation will be high both in the buildup and during the event, with a number of hotels and residential apartments and villas already planned for development in the coming months. 3. Improving governance and favorable policies Confidence levels are starting to rise with improved scrutiny, oversight and governance. Regulatory and legal frameworks aimed at safeguarding the interests of investors and consumers are being developed. Implementation of laws and regulations is bringing the irresponsible speculations and unethical practices to a halt meaning investors can feel confident putting their money and other resources here. In the last few years, governmental departments such as the Real Estate Regulatory Registry (RERA) have been formed to protect homeowners, tenants and other stakeholders of the Dubai real estate market by providing strict regulation and guidelines. 4. Affordability of Dubai's real estate Despite the misconception that Dubai is the home of only the rich and wealthy, properties in this city are actually far cheaper than those in their counterpart cities. This presents a unique proposition for investors. If you consider that the majority of Dubai’s population rent their accommodation rather than buy, you will understand that rental returns are significantly higher than most other cities in the world where buying a property is a more realistic option. The fact is that it’s actually difficult to buy a property in Dubai unless you have been established in the city for a while or have high personal wealth that can be placed as a down-payment or deposit on a property. In addition, many expatriates who live and work in Dubai have no idea how long they are likely to stay, which also makes the buying of a property (or home) less attractive than having the flexibility that renting provides. 5. Demand Sometimes there is no better justification for an investment decision than understanding simple economics, and specifically supply and demand. For the reasons highlighted above, Dubai is primed to grow considerably over the next few years as the population increases and Dubai continues its next phase of development. Dubai’s population by 2020 is expected to be close to 3.3 million people. That represents an increase of over 40% from today’s figure. While this seems high, this rate of increase is not dissimilar over the previous period of time, which is approximately 5% year on year. There is expected to be a huge increase of new residential accommodation to help match the growth in population, but we suspect that there will certainly be a period of time where demand is much higher than supply. It’s not easy to house an additional 1 million people – no matter which city of the world you are in and during this time, both rental prices and purchase prices for both residential and commercial property will undoubtedly increase. Source- primeplaces.com For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#