For years, Dubai has been showing outstanding performance in every field. By evolving over the years, the city has taken advantage of everything that came on the road of growth including its geographical location, its maritime rich history, its diversity,and its culture. Now,it has not just become an international business destination but is also known for its world-class infrastructure, most popular tourist attractions, contemporary lifestyle facilities, and countless premium real estate investment opportunities.
Dubai is set to thrive in the years to come – due to theglobal talent moving there, increased amounts of Foreign Direct Investment, and even more impressive real estate projects. In short, it is not just one of the world’s top and most exciting investment destinationsbut a place to be in 2022. And what better way can be than investing in Dubai real estate?Do you still need more reasons to plan your financial future there? Let’s discuss top 7 reasons that makeDubai an excellent real estate investment opportunity.
Dubai – A safe haven
Dubai is one of the safest cities in the world to live in and a politically stable one to thrive. Ranked as one of the top cities for high quality lifestyle and infrastructure, Dubai is a beacon of economic stability in the UAE. It does not just aspire the talented youth to migrate there and expand their careers but it holds an equal charm for entrepreneurs and multinational companies, which tend to move to Dubai to better serve the Middle East region.
On top of being a major global financial and business hub, Dubai is home to more than 200 nationalities – with expatriates making up more than 80% of its total population. Interestingly, the fastest growing city is one of the most tolerant cities as well, with people living in peace and harmony. It would not just be amazing to start your business here but great to get settled and grow your family. After all, who would not like to have a home in Dubai?
No Income Tax and No Property Tax
Dubai does not collect an annual property tax or inheritance tax and does not levy income tax on your personal earnings. Though the UAE’s Ministry of Finance has introduced the first federal corporate tax on business profits that would be effective starting from June 1, 2023, yet it will not be applicable on personal income earned from employment, real estate, or other investment. Investors tend to invest in Dubai real estate because they can generate maximum profits without paying property tax, VAT,or stamp duty.
However, at the time when property changes hands, a 4% transfer tax is levied, which should be split between buyer and seller. A few other costs / fees / taxes are associated with buying properties in Dubai. The following table can give you a clear idea of all associated charges. It is crucial to get an idea of all these fees in advance as, it will help you set your budget and define your purchasing power.
| Category | Fee / Tax in AED |
| Land Registry Tax | 4% of property value plus AED 540 |
| Registration charges for properties worth up to AED 500,000 | 2,000 |
| Registration charges for properties worth above AED 500,000 | 4,000 |
| Real estate agent’s fee | Around 2% of property value |
| Property valuation fees | 2,500 to 3,500 |
| Oqood Contract Fee (if purchasing from a developer) | 4% of property value |
| Conveyance Fees | 6,000 to 10,000 |
Note: If you are buying property in Dubai through the mortgage, you will also have to pay mortgage registration charges, and mortgage processing fees.
High Return on Investment (ROI)
Dubai has achieved a “stellar” reputation in the global real estate market and the status has been maintained over a span of three decades. The property prices here are competitive and payment plans are convenient, and investors tend to get higher rentals. Dubai offers attractive Returns on Investment (ROI) in terms of higher rental yields as compared to the established real estate markets such as London, New York, Sydney, Hong Kong, and Paris.
Investors can expect an ROI of 6% and above (in double digits) by investing in the most-desirable property developments, and communities. Moreover, rental income is a crucial component of returns as compared to capital appreciation because, an investor can start getting immediate returns in form of a rental amount, while the other is achievable at the time of selling a property. All you need is to invest in the promising Dubai real estate projects and the entire experience can be rewarding.
Note: The market has reached a maturity level and after the COVID-19 induced global pandemic the property prices are relatively lower, making it a great time to invest in Dubai real estate.
10-year investor visa…
Last year, the UAE government announced that investors and employees of certain skilled professions would be granted a 10-years residence visa. It has changed the real estate investment real altogether because long-term residential options indicate how secure your investment can be in this city. TheUAE government is sure to attract wealthy investors to Dubai real estate and other investment options through this offer.
Investors investing a minimum of Dh10 million in Dubai, would be granted a 10-year residence visa in the UAE.
Investors’ protection laws…
Earning profit is one of the biggest attractions in the world but several investors are sceptical to invest in real estate projects. Do you know that the UAE government has legislated and imposed investors’ protection laws to secure their investment? The developer can only receive accumulative cash from buyers after the project has progressed to a particular point. Both the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA) are in charge of safeguarding buyers’ interests and keeping them safe from unwarranted project delays, cancellations, and unscrupulous developers.
Experts say, now is the best time to invest in Dubai real estate…
With an ease in the international travelling restrictionsand overcoming the COVID-19 induced turmoil, Dubai real estate sector is back in the limelight. It has been showing signs of stability and further growth. According to the Dubai Land Department (DLD), a total of 84,772 property transactions have been recorded in Dubai in 2021, which is 65% more in terms of numbers and 71% more in the value of deals as compared to the 2020 statistics.
A successful UAE vaccination roll-out, relatively fewer COVID-19 restrictions, and the ongoing Expo 2020 have helped Dubai’s economy to bounce back immediately after the global pandemic, which in turn boosted the Dubai real estate sector.
A diverse real estate destination…
With an array of apartments, villas, townhouses, and commercial units dotted across the city at popular destinations in Dubai including Downtown Dubai, Dubai Marina, Jumeirah Beach Residence, Business Bay, and Dubai Silicon Oasis to name a few. HFRE presents a number of hand-picked luxury properties in various communities in Dubai.
If you are also planning to invest in Dubai real estate, you can contact us at +971 4876 2473 with your queries or write us at info@hfre.ae and one of our team members will get back to you with a bespoke investment plan.
