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6 major benefits of buying an investment property in Dubai and Qatar

Everybody dreams of long-term financial success. Therefore, it is crucial to put your money where it can blossom. The last thing you want is to look back and wonder why you have not invested as much as possible. For many, the answer is buy to let property investment in Dubai and Qatar. 

To find out why, our real estate agents in Dubai and Qatar guide you through six key benefits of buying Dubai or Qatar property as a buy to let investment. Is it the right option for you?

Void periods are rare

Unlike many stocks, investment properties offer a monthly income, as long as void periods (if a property is not rented) are limited. Fortunately, since rental demand in Dubai and Qatar is sky high, as most of their populations rent, the likelihood of void periods are pleasantly low and it is extremely reassuring to know that if you wish to make your first buy to let purchase in Dubai or Qatar. 

A perfect, passive income

If you combine this stable cash flow with passive income and also a strong return on investment (ROI) and capital appreciation, you have the dream property investment package. In other words, your prized assets work, so you can sit back and relax!  

To cement the passive income side, it is popular to work with a local real estate management company that helps with all formalities, maintenance and tenant correspondence to keep things running smoothly. 

Strong ROI potential

Since rental prices are rising in 2022, there is exceptional ROI potential. What ROI do properties offer in both countries? 

ROI on properties is around 5-10% for both countries, with Dubai typically reeling in the highest returns. Conversely, as Qatar is rapidly growing and has the highest GDP per head in the world, a faster ROI growth rate than Dubai is conceivable. It is no wonder they are both real estate investment magnets in the world! 

Expect capital appreciation

You have likely heard of how passionate both countries are about the development of technology, clean energy and, in principle, their economies. This forward-looking mentality, combined with luxurious properties in consistent demand in emerging communities, is the perfect formula for rising property prices. This is happening at the moment, which undoubtedly helps investors reinvest in real estate with greater capital to expand their portfolios.

Furthermore, new off-plan properties in Dubai and Qatar boast the steepest possible price increase of any type of property in both real estate markets and are a leading choice of for local and international investors.  

Tax-free advantage

In addition, you can earn returns on bricks and mortar in Dubai  and Qatar without having to pay income tax. You can save thousands of UAE dirham or Qatari Riyal compared to buying in the UK or US, where property taxes can eat into up to 12% of a property's value. 

Maximise investments by diversifying

When the time comes to expand your real estate portfolio, diversification is one of the safest and smartest techniques.

For some, this means diversifying by asset class. For example, an investor will acquire a residential property. Next, a commercial property or office space to optimise the investment while widening returns.

In other cases, investors buy two or more properties in different places, as rental performance tends to vary depending on location. Therefore, if one sector experiences a market dip, the other will continue to provide a healthy income. 

Holiday rentals are on the rise

You could otherwise consider holiday rentals. Quite often, investors divide their property use between a holiday home for themselves and a holiday rental for tourists.

Dubai and Qatar have astonishing, distinctive landmarks and host massive sporting and economic events—rightly booming tourist markets. Thus, hosting a property close to tourist attractions, sports stadiums, shops and restaurants on Airbnb or the like can generate reliable income. 

Would you like personalised expert advice on building your property portfolio in Dubai or Qatar? You can contact our real estate agents in Dubai or Qatar, who can help with everything from picking your perfect buy-to-let property for great returns to obtaining a mortgage. Contact our Dubai or Qatar office today.

If you have a moment, you won’t regret exploring these beautiful new off-plan properties in Dubai and Qatar.

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