Why Russians love to invest in Dubai’s realty sector

Updated 24 March 2016
0

Why Russians love to invest in Dubai’s realty sector

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.

Capital Appreciation:

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. (https://www.bayut.com)


South Korea downgrades Japan trade status as dispute deepens

Updated 54 min 59 sec ago

South Korea downgrades Japan trade status as dispute deepens

  • The change comes a week after South Korea initiated a complaint to the World Trade Organization
  • The new measures in effect mean it might take up to 15 days for South Korean companies to gain approvals to export sensitive materials to Japan

SEOUL, South Korea: South Korea on Wednesday dropped Japan from a list of countries receiving fast-track approvals in trade, a reaction to Tokyo’s decision to downgrade Seoul’s trade status amid a tense diplomatic dispute.
South Korea’ trade ministry said Japan’s removal from a 29-member “white list” of nations enjoying minimum trade restrictions went into effect as Seoul rearranged its export control system covering hundreds of sensitive materials that can be used for both civilian and military purposes.
The change comes a week after South Korea initiated a complaint to the World Trade Organization over a separate Japanese move to tighten export controls on key chemicals South Korean companies use to manufacture semiconductors and displays.
Seoul has accused Tokyo of weaponizing trade to retaliate against South Korean court rulings ordering Japanese companies to offer reparations to South Koreans forced into labor during World War II. Tokyo’s measures struck a nerve in South Korea, where many still resent Japan’s brutal colonial rule from 1910 to 1945.
According to South Korean trade ministry, the new measures in effect mean it might take up to 15 days for South Korean companies to gain approvals to export sensitive materials to Japan, compared to the five days or less it took under a simpler inspection process provided for favored trade partners.
Lee Ho-hyeon, a South Korean trade ministry official, said the change would affect about 100 local firms that export items such as telecommunications security equipment, semiconductor materials and chemical products to Japan. He said Seoul will work to minimize disruption to South Korean companies.
Japan for decades has enjoyed a huge trade surplus with South Korea, an economy that’s much more dependent on exports. Many major manufacturers heavily rely on parts and materials imported from Japan.
But the dispute is taking a toll. Exports to South Korea from Japan fell 9.4% last month, Japan’s Finance Ministry reported Wednesday.
The trade dispute between the neighbors erupted in July, when Japan imposed tighter export controls on three chemicals South Korean companies use to produce semiconductors and displays for smartphones and TVs, major export items for South Korea. It cited unspecified security concerns over Seoul’s export controls.
A few weeks later, Japan dropped South Korea from its own trade “white list,” triggered a full-blown diplomatic dispute that took relations between the US allies to their worst in decades.
The dispute has spilled over to security issues, with Seoul declaring it plans to terminate a bilateral military intelligence-sharing pact with Japan that symbolized the countries’ three-way security cooperation with the United States in the face of North Korea’s nuclear threat and China’s growing influence.
Following an angry reaction from Washington, Seoul later said it could reconsider its decision to end the military agreement, which remains in effect until November, if Japan relists South Korea as a favored trade partner.
Seoul announced its plans to downgrade Tokyo’s trade status in August before holding a 20-day period to gather opinions on the decision, during which the Japanese government voiced opposition to the move it described as “arbitrary and retaliatory,” Lee said.
He said Seoul needs to strengthen controls on shipments to a country that’s “hard to cooperate with” and fails to uphold “basic international principles” while managing export controls on sensitive materials.
South Korea previously divided its trade partners into two groups in managing export controls on sensitive materials. Following Wednesday’s change, South Korea now has an in-between bracket where it placed only Japan, which would mostly receive the same treatment in trade as the non-favored nations in what had been the second group.