Investment Case

Investment in the Real Estate Sector has proven over time to have long term returns regardless of the immense cost incurred at the inception of this asset. United Arab Emirates (UAE) continues to remain an attractive center to tourists and investors around the globe and having no income or capital gain tax on high returns on investments made. The high level of political stability and low crime rate makes investments in Real Estate in the United Arab Emirate (UAE) pretty secured. It can also be used as a form of collateral to secure loans from creditors. Real Estate continuously has a lasting value, although prices fluctuate; but the value of a property will never fall to zero unlike other reserves like shares. Income from rent attributed to properties owned is seen as a steady source of income (Dacha Real Estate, 2013).

Due to the growing interest of investments in the Real Estate Sector, legislations have begun in Dubai to define locations where freehold properties can be held. Areas such as Reem Island and Al-Raha Beach are locations in Abu Dhabi where leasehold property can also be bought, and it is expected to adopt similar legislation as Dubai to encourage further investment real estate projects under development worth $140bn (Meed 2008). The northern emirates have not being left out of these streak of investments as developments within that sector are currently at a phase of where Dubai was some years back (Meed, 2008). A person hoping to make strategic moves in the real estate industry ought to consider Northern Emirates which holds a lot of diverse opportunities and prospects.

Regardless of the form of investment involved; whether

a) A core investment, where they are your most identifiable portfolios in which they have the greatest amount of liquidity but cannot be sold quickly comparatively to the traditional investment,

b) Added-value investment where returns rely on property as they appreciate, or

c) Development investment

The level of risk involved differs; the higher the risks, the greater the profit made (Trade spoke, 2011).

After the deductions of maintenance feed, Real Estate Investment in Dubai offers 8-10% return on rent (Dacha Real Estate, 2013). In the United Arab Emirates, a 40-floor completed building in downtown Dubai or Abu Dhabi, two 25-floor towers in Dubai's Business Bay or Jumeirah Village, or a compound of 50-100 high-end villas could be gotten with S100m (Meed, 2008). Investing in this sector especially in the United Arab Emirates is considered a viable business as the latter returns outweighs the cost and other logistics incurred.

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