The Booming Business of Dubai Foreign Real Estate Investing
Real estate is probably one of the most fast-rising industries today. Ranging from residential complexes to commercial spaces, many developers saw potential on this industry, especially in countries like UAE. The upswing started when investors projected the need for quality spaces to serve individuals and the business sector.
Although there was some setback caused by the global crisis in 2008, the Dubai real estate industry was able to bounce back in a spectacular way – throwing away the traditional way of handling real estate business and welcoming changes that can bring profit and lessen vacancies.
The industry of Dubai real estate has been on the constant rise and it is now paving way for globalization through foreign real estate investing. A lot of foreign nationalities saw the benefits and opportunities they can take advantage by investing on real estate properties in different locations. In fact, top Dubai property managers and companies see that foreign investments makes up the majority of profit for this industry. This is caused by emerging markets in Dubai and creation of jobs and labor immigration.
On the other hand, nationalities who invested on Dubai properties are also taking full advantage of their property investments. A lot of these property investors and owners where able to reap the benefits of having a property in the said district. Mainly, these advantages are:
Preparation for retirement
One of the leading reasons why most investors are opting to look and purchase property outside their jurisdiction is because they are preparing for their upcoming retirement. Investors are always looking for a place with established economy and topnotch infrastructures to support their needs when they started their retirement phase. Dubai is seemingly a good place is at offers a number of benefits to retirees – from quality living to safe environment. Moreover, the process for immigration is not that complex as with other locations. There are a lot of service providers that can help them process their document and assist on acquiring properties even if they are residing overseas.
Diversify owner’s holdings
Properties are considered as hard assets and a good alternative over traditional assets like bonds, stocks, and precious metals. But the best thing about having properties, both locally and overseas is that is has a high rate of return of investment. Owners can use it to improve their cash flow by renting it to others. Dubai rental yields make up for almost 7% higher than in any other cities.
Reap the benefits of tax protection
One of the many benefits of having a property in Dubai is the asset protection and the tax incentives given by the Emirati government. In some countries, estate tax can go up to the roof, draining property owners. But the tolerant tax policies in Dubai and other parts of UAE make it possible for foreign investors and local citizens to purchase a property without worrying much about the taxes. Although the Emirati government is planning on some tax reforms, it would not as high as what the other location imposes on property owners.