United Arab Emirates » Why Invest?

Dubai is the world's most glamorous property investment market. Nothing in Dubai is understated. Following the mantra "bigger is better" Dubai has proudly announced the world's first seven star hotel, Burj Al Arab and is set to construct the world's biggest shopping mall, the first underwater hotel and amazingly, the longest indoors ski slope.

• Prices are economical by comparison to other similar trading hubs around the world, and are up by more than 20% in the past two years. There is possibility for a significant further increase, and certain properties have doubled in value already.
• Property is a good hedge against inflation which is showing signs of re-emerging in the global economy. At such times the higher cost of debt servicing can usually be passed on in additional rent, while the value of the property inflates and its debt is unchanged.
• Rental income from property is a stable source of income, and while it might fluctuate, is highly unlikely to vanish altogether. Compare that to interest on deposit accounts or dividends on shares.
• Real estate always has a residual value, although prices can certainly fall as well as rise. But property values will never fall to zero unlike shares and hedge funds.
  

• Dubai property is open to any investor from anywhere in the world, unlike the local stock market. This means greater liquidity and more funds in the market place.
• Demand for property typically picks up during an economic boom such as the one being seen in Dubai now. With massive projects such as the Dubai land theme park, Palm Islands, and Dubai International Financial Centre coming to fruition, this looks a wise time to invest in real estate. 

In comparison to other new and emerging markets, such as those in Central and Eastern Europe, Dubai appears to be a more attractive investment. Prices in the middle market are comparative to those in Eastern European cities such as Tallinn and Krakow. Unlike these countries Dubai has the sunshine factor and a glamorous edge, which is surely contributing to the high immigration from Europe, the Gulf Region and the Indian subcontinent. Over 100,000 extra people are expected to arrive in Dubai every year. Such large-scale immigration is sure to sustain the property rental markets.