One of the biggest decisions taken by the UAE government, is moving away from oil dependency. The oil and gas industry was facing a slowdown globally which significantly affected the economy. Instead, the country started to focus on making tourism as the main primary source of revenue. A move that was initially regarded as a gamble proved to be worth billions of dollars making the country to become one of the biggest tourist destinations in the world.
In a very short time, the country has achieved tremendous growth which has ultimately led to an evolution in the real estate sector. It is reported that some areas of Dubai offer rental yields of up to 10%. While investors are gaining attractive rental incomes, long-term tourists are having a luxurious experience at a fraction of cost in other major cities.
At the end of 2018, the Dubai International Airport received approximately eighty million visitors and expects more as the city prepares to host the Expo 2020. This is in line with the government aim to attract over twenty million visitors by 2020.
The rising number of tourists needs places to stay which has led to the development of accommodation facilities. Property developers have been involved in various new real estate projects in Dubai and across the country. Even though it was just a small town some few years back, Dubai is now competing with other major tourist destinations in the world such as Paris, Singapore and more.
In the recent past, top real estate developers Dubai have been initiating projects to benefit from the tourism boom and more than twenty million visitors are expected for the Expo 2020. As a result, the population of Dubai is also expected to grow up to 3.2 million people which will necessitate the development of more residential units. One of the biggest features of the real estate industry is the off-plan properties such as Mina Rashid Emaar. This plan is helping more residents to buy properties instead of renting.
The government is active in supporting the growth of the tourism industry by providing top of the range infrastructure. For example, most parts of the city are connected by an efficient transportation system. Also, the government is marketing the country overseas to attract more visitors. In addition, the government is focusing on changing employment regulations to lure and retain the high-skilled workforce. Coupled with the new visa rules, the city is poised to receive talented professionals. This will lead to an increase of the city’s population which will require the development of more residential properties.