The Dubai real estate market has emerged as a prime investment destination for international property buyers, with its growth outpacing many major global cities. However, in recent years, there has been a growing interest in one particular area of the city for those looking to invest in Dubai’s property market – the Dubai International Financial Centre (DIFC).
Now, when it comes to real estate investment, the DIFC, though minuscule in size, is a hotspot that’s hard to miss. So, why exactly are investors flocking to this bustling district in the heart of Dubai? In this blog, we’ll explore the reasons why global property investors are attracted to the DIFC, as well as some of the key developments that will contribute to a surge in real estate investment in the area.
All About the DIFC
Established in 2004 in an effort to promote the growth of the financial services sector in Dubai and attract foreign investment, the DIFC is known to be a free zone and leading hub for global business and commerce in the MENA region. In fact, the area has been a key growth driver for the UAE, with over 29,700 professionals working across more than 4,000 active companies, including some of the world’s largest banks, law firms, and other financial institutions.
One major pull factor for global property investors is the number of benefits offered to companies and individuals that choose to set up there, including 100% foreign ownership, zero corporate and personal income taxes, and a streamlined regulatory environment.
Not to mention, the DIFC features the very best of Dubai in the form of ultra-modern office spaces, retail outlets, cafes and restaurants, art galleries, residential apartments, public green areas, and hotels. One of the most recent additions to Dubai’s iconic architectural endeavors is the Museum of the Future, a symbol of Dubai’s commitment to innovation and growth.
When it comes to real estate in the area, the DIFC is home to some of the most luxurious and high-end residential towers in Dubai, such as the Burj Daman and The Gate. Additionally, the DIFC offers a range of property options for investors, including residential, commercial, and mixed-use developments, allowing real estate investors and end-users to choose the type of property that best suits their needs and goals.
What Can We Expect For the DIFC?
As a result of increased interest from companies looking to unlock opportunities in the MENA region, the demand for real estate space, both residential and commercial, has also surged, so it’s no surprise that property investors are starting to take notice. Subsequently, the DIFC has seen significant price momentum over the past year, with sales price levels up 20% on average, indicating strong demand for properties in the area. One-bedroom apartments in the area have also grown, with property prices up 10% YoY.
But, besides its strategic location, business-friendly environment, and growing population, what else is attracting global property investors to the district? Well, Dubai has always been known for its grand plans and ambitious projects and the DIFC is certainly no exception.
- DIFC 2030 Strategy
The DIFC is currently pursuing the main goals of its 2030 strategy, including the development of Dubai into a financial innovation and technology center. The Dubai International Financial Centre has increased its contribution to the emirate’s and the UAE’s economy in 2022 and is set to attract more finance-related foreign direct investment to Dubai next year.
- DIFC 2.0
A multi-stage expansion of the DIFC was announced in 2019, known as DIFC 2.0, set to triple the scale of the area with direct connections to Dubai’s public transport networks in an effort to further attract firms specializing in FinTech and innovation. This is set to differentiate Dubai as an international focal point for FinTech and innovation.
- DIFC Living and Innovation Two
The DIFC has recently expanded its Innovation Hub with the launch of its first residential offering – DIFC Living and Innovation Two, which is a mixed-use, live-work-play destination, offering various housing options to suit different budgets and lifestyles.
The new development is set to feature more than 170 upscale residences along with co-working and office spaces, retail areas, dining experiences, and a wide range of recreational options. Additionally, occupants of those “highly sought-after” residences will have direct access to Gate Avenue, further boosting the demand for rental properties in the DIFC.
- Focus on Sustainability
And let’s not forget about the DIFC’s focus on sustainability. The financial center has made a commitment to reducing its carbon footprint and promoting sustainable living, which is sure to attract environmentally-conscious investors.
As the DIFC continues to be at the forefront of FinTech and innovation evolution, there’s never been a more exciting time to invest in Dubai real estate. With so many new upcoming developments, the DIFC offers a massive opportunity for real estate investors to get in on the action and expand their property portfolio with a piece of the world’s ever-evolving ecosystem dedicated to FinTech and innovation.
With the area’s continued growth and development, it’s only a matter of time before we see a surge in real estate investment in the DIFC. So, if you’re a property investor looking for a new opportunity to buy property in Dubai, then it’s time you invest in the DIFC. The best part is that real estate crowdfunding platforms, like SmartCrowd, allow you to become a DIFC property owner for as low as AED 500! Simply download our app to check out our latest properties available in the most upscale areas to invest in Dubai, including Dubai Marina, Downtown Dubai, and the DIFC.