Booming real estate, rising tourist footfalls, huge financial opportunities have made this vibrant city the leading global hub for investors, writes Chetanya Mundachali
Dubai, the UAE city nestled in the middle-eastern sands has been a global investment centre for over the last three decades. The city has evolved into one of the top global cities that offer lucrative business and settlement opportunities. Dubai, the second largest emirate expects to see a huge growth rate in its real estate sector as it continues to attract businessmen with ambitions beyond the domestic market. The real estate and tourism sectors continue to grow hand-in-hand in Dubai.
Reasons cited for Dubai as a global investment hub:
Dubai’s Main Source of Wealth: The Oil and Gas trade industry in Dubai accounts for 30% of its total GDP. This also pertains to the other middle-eastern nations such as Saudi Arabia which is known for its colossal oil reserves.
Strategic Location for Business and Investments: The desert city’s strategic location has placed it as the bridge between the West and the East. Its geographical position provides the critical access to the emerging trade markets in Asia, Middle East and Africa. This location also allows for a more convenient access to the Western countries like Canada, USA and South America. There has been an increase in the influx of visitors from Western countries over the last few decades as Dubai boasts of luxury and new lifestyles. Dubai’s time zone also overlaps with major business hubs, allowing for seamless global business operations. In the last fiscal year alone, Rs.3173 crore was spent in making the city a primary investment hub, globally.
Logistics Hub: Dubai has a seamless logistic hub that is an additional boon to it’s strategic geographical advantage. Jebel Ali Free Zone and Dubai South are popular Logistics centres that provide efficient connectivity between the buyer and consumer.
Towering Infrastructure: Dubai, boasts of overarching skyline with architectural marvels that redefine grandeur. Burj-Al-Khalifa, the world’s tallest building has been the main centre of attraction. It’s image as a global happening place enable the city to host events in the area of business, sports and culture. The shooting of Tom Cruise starrer Mission Impossible 4 is a fine example of Dubai’s position as a global destination. The city’s image got further boost with developments like Indian business tycoon Mukesh Ambani setting up a sprawling villa with a private beach for his son Anant Ambani as a wedding gift.
Tourism: The vibrance of Dubai and the state-of-the-art infrastructure overlooking the massive desert make it one of the top global tourist destinations. The Burj-Al-Khalifa, Dubai Mall, Burj Al-Arab, Miracle Garden etc. are the ones tourists look out for a first-hand experience.
Golden Visa: The UAE’s Golden Visa is a long-term residence visa that enables foreigners to live, work or study in the UAE while enjoying benefits such as long-term, resident and renewable visa valid for 5 to 10 years. The Golden Visa is one of the main factors for Indians to invest in Dubai. Rentals are more affordable in Dubai as compared to Indian metros.
Higher Rental Yields: Rental yields in Dubai are higher than most Indian Metros at an ongoing rate of 5-7 %. Thus, renting out a place in Dubai seems more profitable for those seeking to attract a sizeable income by leasing out a flat, an apartment or villas and bungalows.
Property Prices: Property prices in Dubai vary. The average price of a flat is varied at 4 million dirhams or roughly translates to Rs. 9 crore INR. This price point caters to the upper segment of the market for those investors craving for a slice of the Dubai luxury market.
Gulf Boom: The ‘Gulf Boom’ that revolutionized foreign job opportunities is a citable reason for Dubai’s spontaneous economic growth. Over the years, the trend has shifted from skilled labour force to independent business owners who have made Dubai their home. Owning a property in in Dubai is a matter of pride for the high net worth individuals of the world, including the businessmen from Asia, especially the wealthy Indians.
Bollywood Star and entrepreneur, Vivek Oberoi has recently collaborated with Mr. Ankur Agarwal owner of BNW Developers, an action that has highlighted the growing interest among Indian investors thus giving a new dimension to the Dubai real estate boom. The illustrious business tycoon is also the founder of Aqua Arc, a Rs. 2,300 crore project on Dubai’s famous Al Marjan island, Ras Al Khaimah. The project aims to attract more investors from India thus offering a huge impetus to International business and Human Development Index (HDI).
In conclusion, Dubai’s unique blend of strategic location, logistics infrastructure, and business-friendly environment makes it an attractive destination for investors worldwide. With its growing real estate sector and various investment opportunities, Dubai is poised to remain a premier global investment hub for decades to come.
