If you are considering overseas property investments, one of the best opportunities may be in a place you haven’t considered, which is the Middle East. The United Arab Emirates may be one of the best locations to put your money because it is a tourist hot spot and ranks number five in the world for having one of the most developed economies. Foreign investors can take advantage of these benefits when they put their money into UAE properties.
Lower Property Values
Even though UAE properties are always in demand, the value of commercial and residential properties are lower than in many of world’s major markets. The prices of property are expected to continue to increase, but the properties in this Middle Eastern country offer a better ROI than in many other markets. Investors putting their money in either residential or hotel properties can expect these investments to remain lucrative.
Foreign investment in UAE real estate is encouraged and anyone can own properties in just about 90% of the country. The UAE has a tax-free system both for expatriates living in the country and for foreign investors. Foreign citizens do not have to pay any taxes to the government, including property taxes.
Demand for rental properties are increasing throughout the country and there is always demand for commercial properties in Dubai, especially hotel properties as it is one of the most popular tourist destinations in the Middle East. Residential rental properties are in demand in emirates like Abu Dhabi, Sharjah, and Fujairah. Property prices in those emirates are still fairly low compared to other markets and the demand for rentals is increasing.
No Renovations Necessary
Properties in the UAE are sold ready to occupy, so as soon as the property is in your name, you can rent it. One good way to advertise availability to list your rental online so that interested parties can view the property and then contact the property manager to make an appointment to see it in person. It is also a good way to find properties that are available for sale when you’re ready to make an investment in Dubai or one of the other emirates.
Appreciation of Properties
When you invest in the UAE you can expect the value of your property to increase, sometimes as much as 40% depending on the location of the property. On average, the growth rate is expected to be 20% to 40% for the foreseeable future. Rental yields average 6% to 10%, which means that investors are bound to make money when investing in properties located in the UAE.
The UAE is one of the most liberal countries in the Middle East and almost anyone is welcomed in the country as long as he or she respects the culture of the area. Just about 75% of the residents of Dubai and other emirates are foreign expatriates who enjoy the high standard of living and the variety of entertainment opportunities in the country. Contact an investment advisor if you want to invest in UAE properties.