BEIJING, December 10, 2015 /PRNewswire/ --
The emirate of Dubai established itself as a metropolitan regional and international city attracting individuals and companies to set businesses, live or invest in its various prospering business sectors including real estate.
The Financial Times reported on 28 November 2015 within its special report about Dubai stating that "residential property remains a target for wealthy international buyers" with a special appeal driven by designers and luxury properties. The report mentions as well that Dubai "remains relatively underpriced when compared with other global markets."
The attractive offering presented by the real estate sector in Dubai is driven by high return on investment attracting investors from all over the world. In a Knight Frank's report published in September, the specialized firm highlights the high returns provided by properties in Dubai reaching more than 7% in rental yields "in the mainstream property segment". The report states that "Dubai still stands tall among real estate capitals in the world for investor seeking income generating properties." The consultancy concludes: "a more mature market, a better investment return, and a highly connected city all point to a positive future of the property sector in Dubai."
The vibrant emirate located in a strategic location between 3 continents offers a safe haven for companies and individuals alike through the various advantages it provides from security to safety, infrastructure, transportation, and tax free environment to name few. These main components form the important pillars allowing a continuous growth of business and population in Dubai in the past years and for years to come.
The expected continuous growth of business in Dubai was supported recently by the numbers published by the Department of Economic Development in Dubai, stating that the number of new trade licenses issued in the first 9 months of 2015 in the emirate reached a staggering 17,169 licenses, with an increase of 5,39% compared to the same period of last year. In addition the number of renewed licences increased by 8% at the end of September 2015 reaching 100,826 licenses. This reflects the development that the UAE economy in general and the Dubai economy in particular is witnessing during this year. The positive sentiment about new investments opportunities from various business sectors is driving this increase in the positive general outlook.
Sultan Bin Saeed Al Mansoori, the Minister of Economy in the UAE said in a recent interview published on 05 December 2015 that "the investment in the industrial sector is expected to double in the next five years", highlighting some important figures such as the capital invested in industrial facilities in the country that reached CNY 221.5 billion distributed between 6,041 facilities with a total of 433,939 employees.
The number of small to medium businesses in UAE reached 350,000 making up 94% of total companies in the country and employing 86% of the workforce in the private sector.
The positive status of the UAE and Dubai's economy, is a strong indicator about the forthcoming situation in various sectors of businesses in the country. Thousands of businesses are being established in Dubai (over 17 thousands in 2015), resulting a continuous increase in population with more people coming to work and live in the emirate, creating a continuous demand on lodging and driving the healthy and sustainable growth of the real estate sector in the mid and long term.
Ziad El Chaar, Managing Director of DAMAC Properties said: "all economic, financial and social indicators prove that the real estate market in Dubai is heading toward a sustainable and steady growth in the coming years, securing high return on investments for mid and long term."
El Chaar added: "the same positive factors contributing to the growth of economy in the UAE -growing at a rate twice faster that the Eurozone as indicated by the Minister of economy-are contributing to the growth of the real estate sector now and for the coming 3 to 5 years."
These factors justify the increasing interest from Chinese investors in Dubai real estate market. According to Juwai.com, China's largest property website, "Interest for property in the emirate from Chinese nationals grew by 1,200% in August compared to the same month last year." High property prices in key Chinese cities, economic concerns and the relaxation of overseas property regulations have all combined to trigger this surge in interest as per the same source.
The Dubai Land Department confirmed the increased numbers of Chinese investors and revealed that the total value of real estate investments from Chinese individuals in Dubai during the first 8 months of 2015, reached CNY 2.07 Billion.
SOURCE DAMAC Properties