Positive Outlook for Dubai Real Estate in 2016
As the emirate continues its preparation to host World Expo 2020, Dubai’s real estate is proving an attractive proposition to international property investors.
With investment in mega infrastructure projects and increased construction supporting continued growth in Dubai’s property market , there are still plenty of high value opportunities to be found.
The Dubai Land Department (DLD) annual report shows that there were 63,719 real estate transactions in 2015, with a value of $72.7bn, representing an 8% increase on investment inflow in 2014.
UAE property portal Bayut.com believe that there is strong investor interest in Dubai, attracted by yields as high as 8%, compared with the 4% average available in London.
Economic growth is expected to continue at a rate of around 3.5% through 2016, despite the decline in oil prices. The emirate has undertaken a significant investment programme in recent years that has seen economic diversification into logistics, retail and real estate that has enabled Dubai to loosen its dependence on oil.
Bayut.com also report that many of the Dubai-based developers left in debt after the crash of 2008 are now in a position to pay off balances ahead of schedule. Development of the iconic palm tree shaped islands, Palm Deira is pressing ahead once again and its developer, Nakheel has announced various hospitality and leisure projects, indicating the firm is moving forward in a position of strength.
Increased investment in Dubai has seen it transformed into one of the world’s most innovative cities. Air-conditioned walkways to the metro, drones providing a document delivery service to government offices, incredible super cars adopted as first aid vehicles and high-power speedboats protecting the emirate’s coastline.
In the pipeline, there are plans to build a museum of the future and the worlds’s first fully functional 3D printed office. The government’s extensive tech-friendly policies are encouraging new innovative businesses in Dubai, turning the emirate into a hub for regional and international tech startups.
With government investment expected to continue as Dubai approaches their 2020 goal, the emirate has much to offer international property investors. The already impressive skyline is altering dramatically to put Dubai firmly on the map as a top investment destination for 2016.
Article by +Roxanne James on behalf of Propertyshowrooms.com
