Dubai, The New Choice For Big Players In Real Estate Investments- By: William King
With the enterprising vision of Sheikh Mohammed Bin Rashid Al Maktoum, the prime minister and ruler of Dubai, this United Arab Emirates is bound to scale new heights. The United Arab Emirates formed in 1971 is a collection of 7 states, but unlike its neighbors, Dubai is not blessed with great oil reserves. Instead Dubai is all set in making itself the newest and the hottest destination of the major global investors. It is the aim of the prime minister of Dubai, to make it the most preferred tourist and business magnet by the end of 2015. The plan aims that Dubai undertakes an all-round development that includes economic development, social equality, justice, security and government excellence.
The real estate market of Dubai is in its nascent stages, it is merely two years old, but investing in a developing market has its own advantages, few of them are as follows.
1. Prices are quite low, as compared to the property prices in other developed market and is thus a great buy.
2. Property is a good hedge to counter the inflation that is emerging in the world economy. In case the interest rate of debt increases, the extra cost can be passed on as additional rent and at the same time the value of property also appreciates.
3. Unlike the stock market that is highly volatile, the rent on property is quite stable, it may fall at times but it can never be nill.
4. In the same way, property value can never be zero, but you canít say this in the case of shares.
5. Property has the advantage of both stock and bond, just like a bond it provides a regular rental income and like a stock it provides capital appreciation.
6. The Dubai property is available for global investors to invest, but this is not true in the case of local stock exchange.
7. This is the best time to invest in Dubai, as Dubai is in an economic boom. There have been developments of massive projects such as Dubai land, Palm Island, and also the Dubai international financial centre is about to be completed. In such a scenario there is bound to be an increase in the real estate value.
8. You can also take loan against a real estate property. Today real estate is rated as the best collateral security that is demanded by banks and other financial institutions.
9. Investing in real estate is also a very effective way of diversification of risk and having a balanced investment portfolio.
10. As real estate investments are tangible, investors have more control over them, like the timing of sale purchase etc.
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