Dubai emerges as prime destination for affordable, high-yield real estate investments

Dubai, often called the “Jewel of the Middle East,” is fast becoming a top choice for international investors seeking affordable real estate investments with promising returns. Despite the global surge in real estate prices, Dubai stands out with an average property price of approximately $6,057 per square metre, significantly lower than cities like Singapore ($15,105 per sq.m) and London ($10,598 per sq.m).

A recent market research report by Realiste, a Dubai-based global proptech firm, highlights Dubai’s appeal to inexperienced and seasoned international investors. The report projects a robust 15 per cent market growth in Dubai by 2024, in stark contrast to the trend of falling house prices in New York. While New York’s average square meter price is estimated at $4,750, concerns about further price declines persist.

Dubai’s attractiveness stems from its strategic location, tax advantages, and investor-friendly policies, and the emirate is positioning itself as a lucrative global investment hub for property investments. Realiste’s study notes that, in an era of skyrocketing real estate prices, finding an investment destination that offers affordability and lucrative opportunities can be challenging. Dubai, however, is emerging as a prominent player in the real estate industry due to its relative affordability and government incentives.

Although Dubai’s increasing unit prices raise concerns, the market remains healthy and dynamic, offering comparatively affordable options. Realiste points out that Dubai is competing with established real estate giants such as London, New York, and Singapore, with the potential to double its real estate prices in the next five years.

Alex Galt, founder and CEO of Realiste, states, “If the numbers don’t lie, as they often do not, investors can take advantage of the market’s upswing and turn a massive profit.” He adds that Dubai’s real estate market is far from a bubble, emphasising the long-term growth potential.

Singapore, known for its stability and business-friendly environment, has historically been a favoured investment destination in Asia. However, the Realiste study reveals that Singapore’s real estate market has become one of the most expensive globally, surpassing London, with an average square meter cost of $15,105. While Singapore promises modest growth over the next five years, the high entry price deters many investors.

London, renowned for its historical significance and cultural richness, is a global real estate hub. Nevertheless, it comes with a hefty price tag. The study suggests that London’s property prices are expected to decline by 1.7 percent in the next five years due to inflation and economic recovery challenges post-Covid-19.

New York, a global financial centre, has historically attracted investors looking for luxury real estate. However, the latest data reveals an average square metre price of around $4,750, with house prices falling by 1.8 per cent year-over-year. This decline has raised concerns of an impending market crash among investors.

In contrast, Dubai offers a diverse range of options for both novice and experienced investors to expand their property portfolios, and ensure a profitable future.

Original article reference: Arabian Business.

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