Any straw-poll of investors scoping this year’s property expo, Cityscape, would reveal many investors also searching for investments in places other than Dubai. With the tourism industry spreading its wings wide around the globe, investors have opened up to the idea of investing in property outside of Dubai. Easy access to the globe has been a catalyst in the growth of the worldwide real-estate industry.
Dubai’s status as the place to do business has gained momentum, after being ranked the third “most dynamic” city in the world. The city comes just after San Francisco and London and ahead of Chinese metropolises, Shanghai and Wuhan on the rank list. According to news reports, Dubai also figures in the list of “elite cities” in the Index, based on the fact that San Francisco, London, New York, Hong Kong, Singapore, Los Angeles and Tokyo apart from Dubai — accounted for a quarter of direct commercial real estate investments in the period 2012-13.
Dubai still has grown to be identified as a vibrant metropolis. The emirate has earned its place alongside international cities such as New York, London and Paris as a cultural, business and property hub.
According to The Telegraph, Dubai is one among ‘the 20 best places to invest in property’. They write, “Once regarded as the quintessential boom-and-bust destination, Dubai may well have turned the corner. Property prices rose by more than 30 per cent in 2013, after what agents are euphemistically calling a “hiatus”.
Meanwhile Forbes ranks the city No. 2 on their list of ‘The Hottest Real Estate Markets on Earth’. (Link: http://www.forbes.com/pictures/emeg45kkfi/no-1-hong-kong/)
Mr. Iseeb Rehman, CEO of Sherwoods Group of Companies, has been assisting investors in Dubai and Middle East, find their feet in the daunting international market for over 27 years.
According to him, “The key ingredients for successful international investment are finding the best locations, in healthy markets, with a stable economy and potential for decent yields”.
“Dubai presents some wonderful investment opportunities, but investors attending Cityscape often want to expand their horizons, as they have done for as long as I have been in Dubai,” he added.
Getting the nexus between capital growth, net yield and the best location correct is most challenging aspect to any property search. Mr. Rehman suggests that it is important to search for property in central, capital city locations which are close to commercial and educational hubs.
Beyond the most basic aspects of purchasing are the more complex questions such as tax and foreign investment rules.
“Although traditional markets like New York and London provide a romantic allure, investors should accept that when it comes to your search all that glitters is not gold,” Mr Rehman said.
According to him, it is wise for any potential international investor to thoroughly research about their preferred locations and property trends. Those wanting to invest should ideally find a property expert who has solid connections in their chosen destination, someone who is well equipped to provide current and accurate market analysis.