Aras Group chose Dubai because it represents a safe investment environment. Residents of more than 200 nationalities live and work in coexistence and harmony. It also has a unique geographical location, economic components, and a high-level infrastructure, in addition to the government Dubai is making efforts to protect the interests of tenants and investors, so it has put in place policies in order for the real estate sector to be of competitive value, and Dubai was ranked as the best city for quality of living and public infrastructure in the Middle East and Africa (MEA) in the 2018 Mercer Quality of Living Survey.
So Why does Dubai real estate continue to be a successful investment?
- In contrast to other similar trading centers around the world, property prices are low. Prices in high-demand projects have increased by 10% since 2011, indicating that there is room for more expansion.
- Property is an excellent inflation hedge. The higher cost of debt servicing will normally be added on in addition at such periods.
- Land rental income is a reliable source of income that, although it may fluctuate, is unlikely to disappear entirely. When compared to returns on savings accounts or dividends on stocks, this is a bargain. Rent returns on good investment properties in Dubai range from 8% to 10%. (after deduction of maintenance feed).
- Real estate still has a residual value, despite the fact that prices will rise and fall. Unlike stocks and hedge funds, however, property prices will never sink to zero.
- Property is a hybrid asset that combines the capital appreciation of a stock with the income-producing ability of a bond.
- Real estate investors usually have more control over the type, timing, and scale of their investments. This is partially due to the fact that they are more concrete and easier to comprehend, as well as the fact that diversification is readily available in the form of various forms of land.
- Unlike the local stock market, Dubai property is available to investors from all over the world. This translates to more liquidity and funds in the economy.
- Property demand usually increases during economic booms or when banks make it easier to get a mortgage. Since 2009, Dubai banks have resumed lending, and the number of finance transactions has risen dramatically.
- Real estate is always a good collateral protection for loans, and it helps you to get the best deals on debt financing.
- Diversifying risk across various property types, places, and rental levels is possible with property portfolios. This helps to spread the possibility of a revenue stream disruption.