Nearly every industry was severely affected by the devastating Covid-19 and lockdown. However, the property industry was among those sectors that fought against this sudden wave of uncertainty and came out triumphant on the other side.
That might seem phenomenal to the common public, but those in the property market for decades know that the industry has that potential.
Today, the property sector is outdoing all most other sectors with consistent performance. Yes, some buyers couldn’t find a flat in Ajman at a price as reasonable as it was last year.
But shrewd property buyers still make the most of a fabulous bargain opportunity with an attractive payment plan to boost the sector.
1- More Capital Gain
Many people think stocks are the best assets for investing. However, it's better to invest in Ajman properties since they can yield a higher return. Secondly, real estate properties are tangible assets, unlike stocks or bonds.
The stock market is a little volatile right now, which can endanger the investment of new players in the game. On the flip side, the property market is booming, with a few ups and downs here and there.
The rental yield for houses in Abu Dhabi is 7.4% per year which is higher than London (3.21%), NewYork (3.91%), Hong Kong (2.82%), and Singapore (2.83%).
The United Arab Emirates is considered a luxurious place to live and visit and a thriving country to invest in and do business.
The values of apartments and villas in Abu Dhabi and Dubai are low compared to other cities in the world — and these Emirates generate higher ROIs.
Furthermore, professionals and expatriates make up a sizable chunk of the country's population who are always looking for a place to rent.
Therefore, we recommend you choose a rental property, maybe a flat in Ajman, instead of buying stocks.
2- Capability to Develop Equity
In the book “Rich Dad, Poor Dad,” the entrepreneur, investor, and financial knowledge activist Robert Kiyosaki gave this valuable advice.
Rather than purchasing a house, buy a rental property. If you buy a home for yourself, you may get into debt while trying to pay your mortgage.
However, your tenant will help you pay off your home loan when you rent out the same house. And you can begin developing equity on the rental property.
And UAE offers loads of opportunities to build significant amounts of equity on your rental properties. Stake is a proptech startup based in Dubai. It allows people to invest in properties combined with other investors with a minimum amount of AED 500.
You may get a deal with an amount of rent higher than the cost of your mortgage. With this extra money, you can pay bills, rent for your residence, and debt — or save it for your next investment in a home.
3- Long-term Visa Options
The UAE authorities have introduced amendments to visa laws that allow investors to get the country’s nationality and passports if they meet specific conditions.
Moreover, other options like renewable retirement visas for five years and golden visas — entice people from across the globe to travel to UAE for business, investments, and other purposes.
As affluent people from abroad flock to the country, one can expect a boom in rental property demand. Foreigners will stay in the country for the long haul and probably make a fortune, given the lucrative opportunities the country offer.
It means you can expect a higher rental yield if you invest in Ajman properties or other real estates, elsewhere in the UAE, now.
Due to this reason, rental property investment is among the most trending investments of our time in the Emirates.
4- A Tax-free Abode
The United Arab Emirates is among the most dynamic and fastest-thriving global economies.
There are other fast-growing and powerful economies in the world like China, India, Brazil, Germany, etc. However, real estate investors in those countries usually have to pay stamp duties, transfer fees, brokerage fees, legal fees, etc.
As the UAE government doesn't charge personal income taxes on its residents, investing in real estate here is super rewarding financially.
Furthermore, Dubai is an investor haven with an uncomplicated tax system that charges zero percent property tax. You only pay a 4% real estate registration fee and then give your property in rent without incurring any tax. And there is no wealth tax or capital gains tax.
The country offers various tax incentives to real estate investors, making investment in the Emirates even more attractive.
We are nine months-through 2022, and data analysis so far has revealed that there have been fantastic property sales in Dubai. Experts have also noticed that foreigners are coming in swarms to buy a flat in Ajman and elsewhere in Abu Dhabi.
Bottom Line
If you want to diversify your investment portfolio and want to make a side income, you should invest in real estate in UAE presently. There is much scope to earn in the country’s property investment sector with fewer taxes, improved visa laws, and a booming economy. The Russia-Ukraine conflict impacted the property industry in the past couple of years. However, the golden visa relaxation is a big plus that motivates foreign investors to buy properties here.
