With the Gold Rate Reaching Its Highest in May 2022, Should one Invest in Gold or Real Estate?

June, 2022

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The price of gold rose significantly in UAE early May 2022 in comparison to last year’s prices. With gold known as a more volatile commodity that tends to fluctuate based on the market, many investors are wondering if now is the optimal time to invest in gold? Or should one invest in a more stable long-term option such as real estate? No option proves to be ideal; the choice depends on the purpose and goals behind the investment. In this article, we will take a look at the benefits of investing in gold vs real estate to help you make the right decision.

Investing in Gold in the UAE

Gold is one of the most popular types of investment. Investors rely on gold during political or economic crises. If you are thinking of investing your money in gold, then UAE is the best choice as the Emirate of Dubai is known as the “City of Gold”. There are many benefits for investing your money in gold. Here are a few:

dubai city of gold

1-Safe & Secure Investment

Gold is considered the safest type of investment. There is no need for any contracts or legal formalities while buying gold, and you will never have to worry about finding buyers or sellers. Many investors prefer investing in gold to keep and sell it during tough times. In addition, buying gold is a simple process. You can go to any jewelry store or buy it online just by clicking a button.

2-Good Return on Investment

There is no need to worry about choosing gold as a way of investment. When you compare the price of gold today with last year’s, you will notice that there is a significant increase. As a result, you can earn a good return on investment from gold.

3-Store of Value

Paper currencies tend to lose their value over time, but gold maintains its value and protects one from the risks of inflation. Many people also consider gold an important way to save money for the future and pass wealth to upcoming generations.

4-No Maintenance Required

Unlike real estate, gold does not require any maintenance. You can keep it for many years in a safe and simply sell it as it is.

Investing in UAE’s Real Estate Market

Real estate investment is a great way to generate income. If you are thinking of investing in the real estate market, then UAE is an optimal choice. With its various benefits, investors from the UAE and worldwide prefer investing there. Let’s take a look at some of its benefits.

small house design

1- No Property Taxes Imposed

The biggest advantage of investing in real estate in the UAE is that there are no extra taxes imposed on the property, unlike major cities such as New York and London. When you buy any residential or commercial property, you will only be required to pay the registration fees to the Department of Land in Dubai.

2- High Rental Yields & High Return on Investment

UAE offers higher rental yields than any other country, which in return allows investors to achieve a very high ROI. Investing in Real Estate is also a very good way for one to generate a regular monthly income through rent.

3- Obtain a Residency Visa

By investing in a property in the UAE, you will be able to obtain a residency visa. Depending on the amount of money you invest, you can get a 6-month visa, 3-year visa, 5-year visa, or 10-year visa. If you want to know more information about the residency visa, click here.

4- The Value of a Property Increases Over Time

If you decide to buy a property today, you will reap its benefit within one or two years as it would have doubled in price. The longer you hold your real estate property, the higher its value will become.

A Comparison between Gold and Real Estate

dubai investment

Now that we’ve paved the way for you by stating the benefits of both options. You can decide the best way of investing depending on your needs and the budget you have. If you want any consultations regarding buying, selling, or renting a property in the UAE, contact RE/MAX UAE by calling +971 4 589 7376.