Investment can be a daunting task, so one should be attentive enough to place the capital at the right place, and here we open up 7 segments for investment opportunities in Dubai.
- Real Estate
- Stocks
- National Bonds
- Mutual Funds
- Funds
- Cryptocurrency
- Gold
1. Real Estate
Real estate with rapid economic growth and high tourism and most importantly, Dubai promises highest rental yield, so this is gleaning more attention of the home buyers and investors both. Besides this, Expo 2020 got a huge impact on the major sectors of Dubai, along with this, population growth and rapid development in the real estate development where the top notch builders are coming up with different projects fully loaded with different amenities & features.
EMAAR, Sobha, Danube, DAMAC and more presents their best projects which creates a leeway for the investors and home buyers.
PROS - Financial stability and better appreciation over time
CONS - Involve big investment and bear maintenance cost
2. Stock
For short and quick investment stocks are considered way better, and in Dubai, there are 2 stock exchanges- Dubai Financial Market & NASDAQ Dubai, but here investment should be done on own risk.
National bonds are good option with a minimum AED 100 and multiples of 100 AED. So investment in bonds is more effective and suitable option compared to other investment options, bonds are debt instrument issued by companies with interest against it.
PROS - Faster growth with economy and easy to buy & sell
CONS - Risk of intact capital loss and high brokerage rates
3. Mutual Funds
For long term investment mutual funds are a lucrative option with a minimum investment. Systematic Investment Plan (SIP) where one can put in a certain amount on monthly bases for a short period of time, in addition to this, it is low cost investment that requires USD 200 which is easily manageable for many.
HSBC, standard Chartered, ADCB, Mashreq, CBD and more provides mutual funds.
PROS - Available with limited funds and liquidity
CONS - Longer lock in periods and sustain management cost
4. Funds
Funds come under two ranges- Domestic & international, and for funds it is in different kinds- fixed income fund, value & growth funds, sector funds, active & passive funds, sharia compliant or non-compliant funds, equity funds and more. So as per the need you can opt for the right fund.
PROS - Curtails the risk and fair pricing
CONS - Requires pro trade execution and tax inefficiency
5. Gold
Dubai is a hub of gold where the exclusion of tax on gold makes it comparatively cheaper than other, so investment in gold can never be a false investment in fact, here you get a freedom to buy small gram of gold and at the right point of time you can sell it.
So out of 7 if you are skeptical for your decision, then gold is the lucrative way to secure capital as it requires minimum amount and zero risk because gold has had been in demand and there is no replacement of it, and in addition to this, in Dubai, you get tax free gold which is benefit itself and also it strengthens the existing capital.
PROS - Easy to liquefy and global demand
CONS - Needs physical storage and deduction of making charges
6. Cryptocurrency
Cryptocurrency is a medium of exchange just like a standard currency, but this is based on digital binary data. And now everyone is accepting this currency for payments, and like other countries, UAE has allowed the usage, and this further unlocks the doors for investors who are seeking secured & quick investment (manageable).
PROS - Self Governed & managed and even transparent
CONS - Risk of data loss and misuse of digital scams
7. National Bonds
It is initiated by Dubai government where they have 50% ownership and it aims low risk savings to people in the UAE by offering Sharia Compliant scheme. And it is one of the preferred investment as it serves fixed income gains with liquidity, attractive interest rate and safety.
Minimum hold is for 3 months and after this you can redeem them across the country and minimum it requires AED 100.
PROS - Less risk and fixed returns of investment
CONS - Prices curtail when interest rate takes a rise and low liquidity
So above mentioned investment options in Dubai outspreads better opportunities for expatriate and inpatriate where they can kick out the best investment options that offer pool of benefits in the present and future, but nothing can beat a lucrative mind, so whatever you plan for keep its percentage of risk in mind too.
Level Of Risk In Investment
No matter what type of investment you plan in Dubai but there is always a risk where you need to have a meticulous mind and approach to find out the Smart option for investment. And when it is related to finance the risk is obvious, but surely with effect approach you can curtail its percentage.
A Perfect Saying - No Risk, No Gain
So even with the certain level of risk in the investment you need to follow 7 standard rules of investing:-
- Vision your object of investment
- Long term of short term?
- Speculations & evaluations are essential
- Know your % of risk
- Calculate the actual return over investment (ROI)
- Timings are important
- Don’t trust trends
So with these 7 golden rules of investment any investor (novice or expert) can meet their lucrative investment be it any form and before parking your money you should know it in & out where you are familiar with the risk and benefits.
ADVICE - Don’t put all your eggs in one basket as this way you can distribute your risk and maintain the right flow of capital in the market and better to kowtow at the time of investment.
Investment Objectives To Open Up Pathways
With above-mentioned types of investment with the level of risk, you should know the objective of your investment- with the property you can seek high capital appreciation or monthly rental, other than this, for short term object funds, gold, mutual funds and stock are some effective ways to keep in your pipeline.
And to really support your investment in Dubai the fact that says Dubai allures more than 16 million visitors a year as it is considered as an economical destination for tourist worldwide and then gargantuan attractions bring tourism to another level in Dubai. So investment in Dubai will mount the capital appreciation
Real Estate Investment in Dubai
Dubai is placed on 7th number in term of safety for both visitors & residents. And then a tax free city that brings better investment opportunities because security is the first concern for investors or home buyer where they understand the sense of responsibility for investment.
And as it creates a wide ground of investment for people worldwide and this has catered investors from different countries here Canada has made a spectacular increase in transactions at 117% followed by Russia with 67% and UK with 45% transactions. And in this there are different countries who are having robust niche in Dubai by investment.
As Per The Data Driven By Dubai Properties There Are Top 10 Countries With Maximum Real Estate Transactions:-
- UK
- India
- Italy
- Canada
- Russia
- UAE
- France
- Pakistan
- Lebannon
- China
So Dubai being a second home destination where the visitors are spending $30.8 billion and this has escalated the real estate market already, and as per the data- Business Bay, Downtown Dubai, Mohammed Bin Rashid City, Arabian Ranches, Arabian Ranches 2 and Dubai Hills Estate are the top communities as the maximum sales transactions have been witnessed.
For better picture on the top communities in Dubai, you can visit Our Community Page to get intact information on the benefits of living in a well developed society, its social infrastructure with location advantages.
And as per the data driven by Dubai Properties - Apartments are working unexpectedly where its growing demand has pushed the number of sales of about 77% in Q1 2022, so for home buyers apartment will secure your investment and for rental purpose- 1 bed apartment or studio will be a robust player as it creates bigger demand in the market, and on the other hand, for personal usage one can consider the bigger bed size (2, 3 and 4 bed apartments).
Townhouses - 2021 (580 transactions) & 2022 (1781 transactions) - 207% hike
Villas - 2021 (23 transactions) and 2022 (415 transactions) - 1704% hike
Impressive escalation in Dubai Properties will further boost the number of sales and whether you are planning to move in or set up a business it is essential to get a fair idea of the cost of living in Dubai before you actually take up residence.
And the data concludes a substantial increase in the overall cost which fortifies the investment returns, so any way you are in a win-win situation.
Standard Cost Of Living In A Gated Community In Dubai
The cost of living in Dubai has taken a jump comparatively where the data shows:-
- 1 Person - AED 3,435.71 (2021) & AED 3,477.89 (2022) (without rent)
- 4 Members Family - AED 11,863.31 (2021) & AED 11,958.62 (2022) (without rent)
- 1 bed Apt - 5,803.36 AED (within the city)
- 1 bed Apt - 3,383.06 AED (outside city)
Get Started
Keeping all the facts and details in mind, one can get into a clear picture of investment in Dubai where every type of option cultivates your investment and bring a better ray of hope to multiply capital.
And it clears the statement that there is no better place than Dubai that holds the better conversion rate and mostly it is seen the real estate Dubai, and for proper direction and guidance Dubai Housing will leave no stone unturned to aid you in your investment.
