Dubai is proving to be increasingly popular among British property investors with figures from the land department showing they put £1.9 million into the emirate’s real estate market in 2015.
This made them the second largest group of foreign investors behind Indians with UK investment almost doubling in three years.
Apartments are the top buy for British buyers, followed by commercial property and then villas with low interest rates, good rental yields and tax free returns on investments behind the rise in investment.
According to Sultan Butti Bin Mejren, director general of the Dubai Land Department, the infrastructure in Dubai and the high return on investment makes property in the emirate attractive to buyers from overseas.
British investors are looking for a good return on their investment, according to Sultan Al Suwaidi.
‘Dubai is a dynamic global investment hub and has always had attraction for international investors. The property market continues to mature and stabilise as a result of strategically implemented government regulations,’ he pointed out.
Returns for commercial property in Dubai are between 7% and 10% yield which is higher than Hong Kong, Singapore and London.
The areas where British investors are buying include Dubai South (Dubai’s government global transport hub) Dubai Marina, Palm Jumeirah, Jumeirah Lake Towers and Downtown Dubai. According to figures affordable locations such as Dubai Sports City are also becoming more popular.
Dubai’s zero taxation on rental income and capital gains is one of the biggest factors that appeal to British buyers and foreign investors in general are inclined to build their portfolios in Dubai to avoid the high taxes in their respective countries.
It is also expected that the forthcoming Expo 2020 will boost Dubai’s commercial property and real estate sector. Last year alone, Dubai attracted 12 million tourists and it is estimated that by 2020 the number of visitors will increase to 20 million.