DUBAI: Dubai has long lived up to its reputation of attracting international investment and it comes as no surprise that the emirate has an ardent fan-base in Russia as well.
Russia is the world’s largest producer of crude oil and second largest producer of natural gas, which adds up to more than half of the country’s federal budget revenue.
Although the low oil prices and regional security crisis have depreciated the Ruble and made international purchases for Russians costlier, Russian investors can’t seem to get enough of Dubai.
According to leading Russian real estate agency Tranio, Dubai was the top real estate investment choice for most investors as it offered affordable luxury realty options and a vast variety of it to choose from.
Here we look at several factors that make Dubai so popular with Russians.
Easy investment options: Investing in Dubai’s real estate sector is a convenient process as investors don’t have to complete arduous paperwork to make an investment. This is a good enough reason, as investment in many a foreign countries requires numerous protocols like security clearances and proof of earnings etc.
If you like a property in Dubai, you are eligible to buy. It’s as simple as that. And purchasing a property worth AED1 million or above automatically makes the buyer eligible for a residence visa.
Bulky Yields: Purchasing property in Dubai in order to put it up for rent is a wise investment move indeed. Dubai’s rental yields are some of the best in the world, with apartments yielding an average of 6 percent of the property purchase value in January 2016, according to UAE property web portal Bayut.com.
However, the yields rise further if one was to consider individual apartment categories.
For example, studio apartment rents in Dubai yielded an average of 7.23 percent in January, Bayut.com said.
In comparison, the average rental yield in Moscow city center was recorded at 4.19 percent, according to Numbeo.com.
According to figures by Numbeo.com, an investment of $1 million in an apartment in Dubai’s center will get you 217 square meters, while it will only buy you 209 square meters of space in the Russian capital’s city center.
So lower prices, more space and higher yields naturally make Dubai a better bargain.
Another point of attraction for investing in Dubai is its growing economy and multiplying population.
Prices in the city’s real estate market are still low when compared with those in other global cities like Singapore and Hong Kong.
While this lowers the entry barriers for investment, the growing economy and increasing population promise a heightened demand for housing across the city in the years to come, giving investors a shot at lucrative capital gains.
Tax-free incentives: The high-end lifestyle of emirate comes with the additional benefit of tax-free living.
Though most countries have tricky income-tax policies, Dubai has created a league of its own by offering tax-free environment to businesses and professionals.
So your rental income goes straight into your pocket. An extra round of Vodka, then?
Security and lifestyle: Dubai is the regional hub of business activities for good reasons – it offers a secure business environment and laws that are simple to comprehend and abide by.
And if you live by the law, Dubai’s unmatched luxuries are yours to enjoy. Tranio’s real estate research expert Yulia Kozhevnikov said Russians were mostly drawn to the port city in pursuit of unique and luxury lifestyle, year-long warm weather, pristine beaches and availability of high-end properties.
Closeness to Home: Russian tourists and investors also like Dubai as it is in close geographical proximity to their homeland. The distance between good business opportunities and Russia is more or less five hours, thus making it easier for Russian businessmen to profit from the emirate’s expanding realty and tourism sectors.
Expo 2020: This is one of the most anticipated mega events for the emirate and expecting to receive around 25 million visitors in its six-month duration. The Expo 2020 will provide investors with a chance to double their capital by exploiting business opportunities associated with the event.
Global tourism hub:
From rampaging through desert dunes to skiing down freezing snowy slopes, Dubai doesn’t leave anyone bored. And if adventure is not your idea, you can grab a good book, some beverages and watch the sun set over the Arabian Gulf in peace.
The host of recreational and leisure opportunities the city offers make Dubai a formidable adversary when it comes to competing for tourist.
It is certainly the regional tourism hub and developing structures that are expected to make it the best in the world as well.
Who in their right mind would not want to invest here when handsome profits are accompanied by an array of thrills? We think the answer is no one.