Things To Know For Investing In Dubai Property As A Foreigner

How Economic Fluctuations Impact Dubai Real Estate

It Is Resilient And Innovative

These two factors are a pair of reasons why the Dubai real estate market is very attractive to global investors. Despite the many global economic challenges, the Dubai market has continued to be strong and a very popular investment opportunity.

There are many reasons why this real estate market has overcome the odds. Some of those reasons include government policy reforms and streamlining investor ownership laws.

All of these factors have positioned the Dubai real estate market for continued growth. The luxury market is the biggest receiver of this benefit. Here are some economic fluctuations that impact the Dubai real estate market

Economic Factors That Influence The Dubai Market

1. Global Economic Trends– These trends can help produce confidence in the Dubai market as key policies help protect the industry from these downward trends.

2. Currency Exchange Rates– As the AED is tied to the US dollar, currency fluctuations mean that international investors have more money to invest and can take advantage of the lower costs found in Dubai real estate.

3. Solid Oil Prices And Government Stability– These two factors have influenced investors to buy more property in Dubai. Investor confidence is high when it comes to Dubai real estate because of this situation.

4. Global Interest Rates– These rates can change at any time and affect the borrower’s costs. Right now the mortgage interest rates in Dubai are very attractive to international investors.

The lower interest rates the more affordable the housing investment in the city. That always attracts investors.

5. Global Investment Trends– These trends tend to influence the flow of capital into Dubai. These trends are impacted by the global economic and political climates.

6. Pandemics And Crises– When these hit on a global scale, then the Dubai real estate market takes a big hit. This can be a positive if the at-home work trend is utilized again or not.

They will also influence housing demands which will have a negative impact on the Dubai real estate industry.

7. Trade Agreements And Policies– These international agreements will impact the need and demand for commercial properties. As it will impact the international business’s needs and operations.

8. Global Migration Patterns– The movement of people will influence the economics of the Dubai real estate sector as they influence population growth or subtraction in Dubai and around the world.

Real estate investors need to remain flexible to be able to navigate these changes and downturns in the real estate market.

Using Sustainability And Green Initiatives

One of the strategies Dubai’s leadership has undertaken to make their real estate a solid option when the global economy twists and turns, is to use sustainability to keep their property market a solid investment.

They have also added green initiatives to make sure that Dubai’s residential and commercial communities help achieve global environmental goals. Here are some elements of those strategies:

1. Using LEEDThis green certification system helps Dubai developers meet green building standards while using friendly construction practices

2. Renewable Energy Programs– These programs focus on using solar and other renewable energy sources. This cuts down the need for use of and reliance on conventional energy sources.

3. Smart Home Construction– These energy-efficient homes and automated systems help reduce the consumption of energy making them more environmentally friendly.

4. Adding Green Spaces In Urban Planning– The Dubai leadership has prioritized green spaces which is why you see so many in the different neighbourhoods. Plus, the leadership does precise urban planning to make sure those neighbourhoods enjoy improved quality air.

5. Using Recycling And Waste Reduction Strategies– Both options help reduce the amount of waste residents throughout each week. Then the increased use of eco-friendly materials adds support to these programs.

6. Water Conservation Practices– In a desert making full use of the limited water supply is essential. Dubai has developed ways to reuse water as well as having its developers use water-friendly landscaping to reduce the need for more water.

Turning Tenants Into End-User Buyers

One of the ways that Dubai’s real estate market can fend off the economic influences is by conversion. They have done this in several ways:

1. Maintain Benchmark Borrowing Rates– While other countries’ central banks may have raised their rates, the UAE central bank has not. The attractive rates build investor confidence and make renters more interested in buying over renting,

2. Using Its Tax-Free Status– The lack of property taxes is a great incentive to buy over rent. Plus, other incentives and programs, like golden visa reforms, etc., have kept home ownership very attractive for renters to change their status.

3. Making Property Ownership More Affordable– This is a great incentive that helps turn tenants into end-use buyers. The advantages of home ownership far outweigh any benefits renting has to offer.

4. Visa Regulation Reform– This is another inducement to help temporary workers and residents to consider making their status more permanent. One of the best ways to do this is to buy a new apartment or home in the city.

5. The Strong Real Estate Market– Currently the future looks good for the Dubai real estate industry. The city is a safe and secure location to make an investment and the luxury lifestyle provides added motivation for tenants to upgrade to home ownership.

Some Additional Words

The Dubai leadership continues to make changes to its real estate investment protocols that protect this sector from global economic fluctuations. When you are ready to take the step and invest in this hot market, then call our estate agency.

We have over ten years of real estate experience in Dubai. Our knowledge and experience will help you find the best location to invest in. All of our estate agents are RERA-approved and know the market well.

Their knowledge and experience will guide you to a safe and secure investment strategy. Call us today to see what we can do for you and your investment plans.

Latest Posts

Featured Properties

Compare listings

Compare