Why invest in Dubai: eco-friendly city with high ROI on renting out and cryptocurrency in use

Mihai-Alexandru Cristea 18/11/2022 | 19:01

Do you want to invest in real estate in Dubai but don’t know where to start? Do you want to buy real estate with cryptocurrency? Don’t know how to invest your money the right way? Consultation from experienced specialists of Emirates.Estate website will help you understand the peculiarities of the market. Also, their staff will help you choose the best real estate for income or permanent residence, e.g., in one of the most famous residence complexes’ Stella Maris Tower in the UAE. And we in our article will draw your attention to some of the reasons why property in Dubai is a highly profitable asset.

 

What attracts investors to Dubai

Agency CBRE, one of the specializations of which is research in the field of real estate, has provided another report. According to this report, Dubai is currently experiencing the fastest growth in rental prices in the last 8 years. In almost all areas of the most famous emirate, the cost of rent is growing, but the highest growth rates are observed in the areas of:

  • Downtown, 
  • Discovery Gardens, 
  • Dubai International Financial Center, 
  • Palm Jumeirah.

Experts believe that such rapid growth is due to two factors. 

  1. Firstly, it is a continuation of the momentum that was given by Expo 2020. 
  2. Secondly, it is the modernization of the visa reform: in particular, the possibility of obtaining a “Golden Visa” for wealthy people who invest in real estate.

World housing experts say that foreign investors and the wealthiest people choose this city not just as a location for profitable investments. In the last year, the city has become the main residence for many, where there are ample opportunities for doing business and investment, and a high standard of living that fully meets their needs.

According to the Statistics Center, in July 2022, the population of the city crossed the border of 3.5 million people for the first time, which is an excellent confirmation of the demand for the emirate. And investors who wanted to increase their income are moving to the emirate to enjoy the high standard of living and the opportunities presented.

The importance of ecology 

Residents prefer to use eco-friendly spaces. Most people have come to understand that their own health depends on indoor air quality. This has led to the fact that residents begin to take care of the premises where they live and work, trying to create a truly healthy space.

The interest of residents and the priority in favor of healthy space are also taken into account in the government, which is trying to improve the living conditions for citizens. Thus, the recently announced transition to a “green economy” was replenished with another item proposed by the UAE Ministry of Climate Change and Environment. Representatives of the Ministry proposed to launch the National Air Quality Strategy, the measures of which will be implemented until 2031.

The emphasis in this National Strategy is on the integration of innovative technologies, the use of which will ensure high indoor air quality. Also, according to the proposals of the Ministry, national standards will be introduced that determine the degree of air pollution.

Such proposals testify to the concern of the government for its own citizens, which only enhances the prestige of the United Arab Emirates in the international arena. 

Cryptocurrency when investing in property

Serious changes in the bitcoin (BTC) rate force cryptocurrency holders to find new options to invest their funds. Today, the cost of one bitcoin is slightly higher than the par value of USD 20,000, and many property buyers in Dubai are already using an alternative – one of the new cryptocurrencies, Stablecoins.

This cryptocurrency is distinguished by a special structure, due to which its holders can count on a certain stability with rates. Especially when compared with other types of cryptocurrencies. The ability to cash out cryptocurrencies by property owners ensures that the total price of their assets will not be highly volatile. But if we are talking about bitcoin and other cryptocurrencies, then they are just subject to volatility.

  • It is worth noting that today more and more landlords and developers are joining a society that accepts cryptocurrency as payment. 
  • An important factor in the popularity of cryptocurrency in the United Arab Emirates is the process of developing a regulatory framework that will simplify all transactions. And this approach of the Government will make the state even more high-tech.

How the rental market is changing

Investing in real estate in Dubai can bring you profit through renting it out. With every year it becomes more and more profitable.

Statistics show that over the past year the average rent has increased by 21.7%. Specialists observe small discrepancies by types of properties: 

  • villas’ rent increased by 24.7% over the past year, 
  • apartments’ rent, on average, increased by 21.2%.

After the past half year, the rental market has recorded the following figures: 

  • the average annual villas’ rent is USD 69,500, 
  • and apartments’ rent is USD 23,100. 

Like almost all previous months, the artificial island Palm Jumeirah occupies the first place in terms of the highest rent.

And despite skyrocketing rental prices, more wealthy people are rushing to move to Dubai. The trend to invest in real estate in Dubai encourages them to invest their capital in various properties, receiving super-profits, and a high standard of living perfectly matches their needs.

According to statistics, the most attractive areas for renting real estate are:

  1. Dubai Hills Estate, 
  2. Downtown, 
  3. Dubai Marina. 

You can also note the top nationalities that most often rent property: these are residents of the UK, Russia and India.

Experts also sum up the results for the second quarter of 2022. It is noteworthy that in this quarter, specialists were able to observe a unique phenomenon: the number of lease agreements increased significantly compared to the 1st quarter. That is, despite the increase in the cost of rent and the reduction of real estate, the rental market is developing rapidly and is striving for the peak of its development.

Real estate in Dubai

Have you decided to move to Dubai or do you want to earn a stable income by renting out your property? Visit Emirates.Estate website, and their experienced specialists will select the best options for you.

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Mihai-Alexandru Cristea | 29/11/2022 | 10:17

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