Why You Must Invest in Dubai?

Why invest in Dubai real estate

Being one of the fastest-growing cities in the world, Dubai boasts a thriving economy, an unrivalled property portfolio with positive value appreciation and higher rental yields, an unparalleled lifestyle, a strategic geographical location, diverse culture and rich maritime history. Following the announcement of the foreign property ownership decree in 2002, the city witnessed a massive construction boom attracting foreign investors to its real estate market. Despite the momentary halt by COVID-19 induced global pandemic, Dubai real estate sector exhibited stellar performance as compared to several established real estate markets.

To make the most of this opportunity, seasoned investors from India, Pakistan, Gulf States, China, and the UK have been joining the list of foreign investors – making Dubai a cosmopolitan city in the true sense. Recently, Mukesh Ambani bought the most expensive villa in Dubai for $163 million, which is located on the world-famous Palm Jumeirah. Dubai is set to thrive in the years to come – due to the global 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 destinations but a place to be. And what better way can be than investing in Dubai real estate?

Why is it worth investing in Dubai real estate?

With strong infrastructure, futuristic developments, and impressive ROI, there is no city like Dubai when it comes to real estate investment. It is one of the safest cities in the world and when people move to Dubai, renting or buying properties for sale in Dubai becomes their first choice to begin life there. A steady spike in the demand for properties for sale in Dubai has been observed from the second half of 2021 to date.

According to the latest report of the Dubai Land Department (DLD), over 43,000 property transactions were recorded in the first half of 2022, worth more than $31.3 billion. In other news, it is established that Dubai hits record-breaking AED8 billion property deals in a week, with a total of 2,703 property transactions conducted during the 3rd week of October 2022 – ending on the 21st. A few other reasons to invest in Dubai real estate are:

  1. Gross rental yields of 5% to 9%
  2. Lower prices of properties for sale in Dubai as compared to other established markets
  3. Property buyers’ protection laws
  4. Real estate investment leading to residential visa opportunities
  5. No income tax
  6. No property tax
  7. A strong infrastructure
  8. Desirable villa communities
  9. Ultra-luxury apartment developments
  10. Unparalleled lifestyle

If you still need more reasons to plan your financial future here, then read on to know a few top reasons that make Dubai an excellent real estate investment option.

Dubai – A safe haven

Properties For Sale in Dubai

Dubai is one of the top tourist destinations around the world that offers a glimpse of history, culture and luxury lifestyle. Ranked as one of the top cities for high quality lifestyle and strong infrastructure, Dubai also enjoys economic stability and contrives growth. After a temporary halt, the city has jostled its way on the global platform not just as an investment hub but positioned itself as a safe haven to invest and live in. Dubai is a city of dreams that does not just aspire talented youth but also holds an equal charm for entrepreneurs to expand their businesses in order to better serve the Middle East region.

With expatriates making up more than 80% of Dubai’s total population, the fastest growing city is one of the most tolerant cities as well, where people are living in peace and harmony. A large majority of real estate agents in Dubai are of the view that Expo 2020 was a catalyst of change that brought people to Dubai but the city’s safe status, investment-oriented rules, market reforms, new residency visa plans and business-friendly policies will keep the emirates on the radar for a long.

Residence/Golden Visa options

In 2021, the UAE government announced that investors and employees of certain skilled professions would be granted residence visas. Due to the UAE government’s proactive economic changes, an expedited vaccination programme, and an early adoption of open-door policies, Dubai was expected to attract foreign investors in 2022. However, the announcement of the long-term residence visa options has changed the real estate investment realm altogether.

More and more people are now prepared to make Dubai their permanent home. It is because long-term residential options indicate that how secure your investment can be in this city. Since then, the market has been attracting high-net-worth individuals from several countries including Russia, the UK, the USA, Canada, Germany, India and Pakistan to Dubai real estate sector.

Under the new programme, multiple visa options have been introduced to offer flexibility and convenience, in order to make the country more inviting and to increase investment in Dubai real estate sector. The new Entry and Residence Scheme offers 10 types of entry visas with easier terms and conditions.

The UAE Golden Visa, a 10-year visa or long-term visa is a type of investor visa with particular requirements for long-term residency in the UAE that must be met by the applicants. However, not many people know that the golden visa is available for 2, 5 and 10 years categories. Who are eligible to apply for the UAE Golden Visa?

  • Real estate investors
  • Entrepreneurs
  • PhD holders in the UAE
  • Specialists in fields of science, medicine, sports, art
  • Graduates with a 3.8+ GPA from the UAE-accredited universities
  • Top graduates from the UAE’s high schools and their families

If you are interested to invest in Dubai real estate, you must conduct thorough research to find out different real estate investment related residence visa options and also Government schemes to buy property in Dubai.

Promising return on investment (ROI)

Properties in Dubai

Dubai real estate sector is relatively new but has a significant potential for growth relatively higher than the established markets including London, New York, Hong Kong, and Sydney. Compared to the time span that is just over three decades only, Dubai offers some impressive returns on property investment. The prices for properties for sale in Dubai here are lower than its several counterparts but payment plans are practical, and investors tend to get higher rental returns and value appreciation.

A few noteworthy elements that appeal to a majority of young investors include the availability of digital platforms, a strong investment potential, higher return on investments, low risk environment, countless investment options, and a diversity of ETFs. Investors can expect an ROI of 6% – 10% and even above 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 promising real estate projects and neighbourhoods with higher returns on investment in Dubai to make the entire experience worthwhile.

Attractive rental yields

Fuelled by the influx of expatriates, high-net-worth individuals and strong demand for properties in Dubai, higher activity is recorded in rental terms across several areas in the emirate. Dubai Marina, Downtown Dubai, Palm Jumeirah and Business Bay remained the preferred choice for tenants and investors alike throughout 2022. Over the past 12 months, a significant rise in rental prices is recorded for properties for rent in Dubai nearly in all neighbourhoods – around 32 per cent on average and a year-on-year increase of more than 40 per cent.

Not just the sales prices but also rental costs continue to soar as Dubai real estate market heats up, due to the growing number of expatriates moving to this city. According to real estate adviser CBRE Group Inc., the average rent for villas in Dubai touched AED 268,758 in September, showing an increase of 26 per cent in the year. Meanwhile, average rents for apartments soared 27 per cent and reached AED 89,986.

Favourable taxing environment

Dubai is always known for its tax-free lifestyle and people from everywhere around the world are always attracted to Dubai due to this particular reason. The government levies low taxes on the public and this single aspect is the opportunity to grow your wealth. Therefore, high-net-worth individuals tend to invest here to earn maximum profit without worrying about annual property buying tax, income tax or capital gain tax.

This makes properties for sale in Dubai highly affordable and most of all, lucrative, compared to other major realty markets, where paying periodic taxes is mandatory. The best way to learn about this is to go for fine estate agents in Dubai to clear every query. 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 to personal income earned from employment, real estate, or other investment.

Affordable luxury properties in Dubai

Apartments For Sale in Dubai

After the global pandemic and robust growth in demand and the number of transactions, the prices for properties for sale in Dubai are still lower than the same kinds of properties located in other key markets including London, Hong Kong and New York. The asking price, location and diversity in Dubai real estate market surpass the standards of properties found in other cities, which is a strong reason to entice savvy buyers to invest in properties for sale in Dubai.

From fully-furnished apartments to lavish townhouses and from ultra-luxury premium penthouses to beachfront premium villas, the emirate’s property portfolio is unparalleled. Dubai prime areas are in higher demand with property prices up by 90%, making Dubai one of the highly attractive real estate markets for foreign investors. Knight Frank, a property consulting firm in Dubai, confirmed the spike of 59 per cent for Dubai luxury properties.

Arabian Ranches, Jumeirah Golf Estates, Al Barari, Emirates Hills and The Villa are a few of the top choices for luxury living in Dubai. 

Investors’ protection laws

When it comes to choosing to invest in Dubai real estate, stellar returns and profits are one of the biggest attractions in the world. However, many potential investors are sceptical to invest in real estate projects but when it is Dubai real estate, you can have a seamless investment experience. Good estate agents in Dubai are aware of every law and would guide you accordingly. The UAE government has legislated and imposed investors’ protection laws to secure investors’ 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.

A diverse real estate market

International City Dubai

Whether you are looking for a beachfront villa or an apartment in a high-rise, a townhouse near the desert or in the middle of the city – location is one of the biggest highlights and deciding factors in the Dubai real estate market. It cannot just help you decide about a certain property but can also largely influence the ROI, especially if you are buying an investment or buy-to-let property. Investing in Dubai real estate is an ideal option to start making money both in the short and long run but you must understand that not all properties can promise equal returns.

Location is one of the most important considerations but you must know a few other proven ways to maximize returns on property investment. Other important factors include types and quality of facilities, proximity to public transport and communal amenities like schools, size, maintenance costs, and market conditions at the time of purchase. Dubai real estate sector offers a number of options to choose from but you must not just base the decision on personal preference, mainly if it is an investment property.

With an array of apartments, villas, townhouses, and commercial units dotted across the city, a few popular destinations ideal for investment in Dubai real estate include Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Beach Residence, Al Barsha, Business Bay, and Dubai Silicon Oasis to name a few.

You must get your hands on a step-by-step guide to buy a property in Dubai, to help you make a viable investment decision in an international real estate market.

Branded residential projects – Dubai’s new interest

In the last ten years, Dubai has developed into a significant global hub for luxury and ultra-luxury residences, while the US, led by Miami, continues to have the biggest concentration globally. The trend of branded residences is a newly found love amongst local and international property buyers looking to invest in Dubai real estate. Previously, the branded residential market was dominated by names like Four Seasons and Mandarin Oriental, and other well-known brands under Marriott and Accor.

More recently, however, brands like Porche, Bvlgari, Cavalli, and Elie Saab, all of which have swathes of fiercely devoted fans, have joined the race to offer ultra-luxury branded residences in Dubai. Currently, there are two distinct areas where branded residential projects are concentrated; Central Dubai, which extends from Downtown Dubai outward along the Dubai Canal to Jumeirah 1, and New Dubai, which includes The Palm Jumeirah, Dubai Marina, and Jumeirah Lake Towers. These are a few top communities for luxury living in Dubai, which also offers promising returns due to higher demand.

Due to the lack of development options in Downtown Dubai and Palm Jumeirah, developers are turning to these areas’ environs. Businesses are coming into places like Business Bay, where Missoni, Mama Shelter, Pagani, and the Dorchester Collection are all developing a presence.

Now is the time to invest in Dubai real estate

Apartments for sale in dubai marina

A successful vaccination roll-out throughout the country, new economic reforms, and countless new investment-based residence visa options have helped Dubai’s economy to bounce back immediately after the global pandemic, which in turn boosted the Dubai real estate sector. Moreover, no bubble risk reported yet for Dubai property market, making it an ideal investment option now and the escalating number of real estate transactions is proof.

If you are also planning to invest in Dubai real estate, HFRE is your go-to place. You can contact the sales team 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. We assure to get back to you as soon as possible with multiple hand-picked properties for investment.

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