The United Arab Emirates presents a lot of Real Estate Investments opportunities to global Investors and would continue to be an attractive choice over other Investments around the globe. There are a couple of reasons why Africans should start diversifying their Investment portfolio to include the UAE Real Estate.
Hedging against inflation and currency devaluation
The dollar has been gaining strength over most African currencies YOY. For instance, the Naira has continue to see devaluation against the Dollar. Buying Real Estate in the UAE is a great way to hedge against the losses that could be incurred due to currency deprecation. The UAE currency (Dirham) is pegged to the dollar which makes it a great hedge against any market fluctuations. Some of the pushbacks we have gotten when comparing African investments to UAE investment is the capital appreciation of investments back in Africa, while we agree that this is true the high rate of inflation nullifies the profit in the long run.
Attractive Investment Yield
The UAE Real Estate market do not only provide an exciting Return on Investments but also provide increased capital gain. The recent market spike after 2020 is an attestation to the profit that could be realised by Investors in the UAE Real Estate market, the average residential property have seen over 10% increase in appreciation since January 2020 under balanced economic conditions. Property rentals are at all time high which has Increased Return on Investments for existing Investors. Overall it is a win-win scenario for both short and long term Investors.
Diverse Investment opportunities
Investing in Dubai presents investors with an array of choices, there is an endless portfolio of Real Estate Investments to choose from which allows investors to choose the investment that fits their profile. There is not a short of residential, commercial, hotels, labour camps, full buildings etc. Some of these Real Estate Investments even provide fixed annual returns for a defined period of time which is mostly attractive to risk averse investors who would like a form of security before taking the leap.
Flexible payment options
Most of the investments in Africa requires Investors paying a heavy chunk of the downpayment and even the full amount of the property price regardless of the completion status of the building. This is such a high barrier to entry that has discouraged a lot of people from owning a property. In the UAE, properties have attractive payment plans that encourages Investors to spread their payments over the course of the construction. In the case of ready properties, there are affordable mortgage options and competitive Interest rates offered by the banks to support your property purchase.
Security and Safety
This is the number one selling point of investing in the United Arab Emirates. Safety is prioritised in the UAE which has attracted a lot of investors to the country. Dubai is a digital city that ensures that all activities are monitored. As a UAE investor, you would neither have to worry about your safety nor the safety of your investments. The UAE recently ranked third globally as the most secure country to live in.
A developed and Smart city
Dubai is a tourism hub with a visionary leader, although still a developing based on the projects on its roadmap. This city presents is a highly attractive option compared to other locations, Dubai is a business hub that connects easily to any part of the world.
Quality of Life
The quality of life in United Arab Emirates is phenomenal, you can enjoy all the great things of life in one place, Dubai prides itself on having the world best of everything Including 5 star Michelin restaurants, best schools, hospitals and every other things that embodies a great quality of life. All multinational companies have a presence in the UAE and there is not a shortage of opportunities, It is no wonder that a lot of expatriates call this place home.
Are you considering owning a real estate investment in the UAE and you are not sure on how to proceed. At Blythe & Company, we will not only hold your hands through your purchase process, we will make sure that all your pain points are addressed to ensure that you are making informed Investment decisions.
Contact us at Info@blytheandcompany.com for further enquiries.
