The advantages of investing in Dubai real estate in 2023
Real estate in Dubai is currently a popular investment. Discover the profitability of apartments, houses and villas, and get up-to-date analytical data about the market condition and its prospects.
In an uncertain financial world, when it’s difficult to predict what will happen tomorrow, one of the key issues for people in many different countries is the preservation of their savings.
Because of the precarious economic position and the lack of clear forecasts and prospects, investors are looking for reliable and safe options to save, and ideally to increase their capital.
One of them could be property in Downtown Dubai the UAE and other popular areas of Dubai. So let’s consider the benefits of investing in real estate in the UAE, whether there are risks and pitfalls and what projects are the most profitable to invest money in.
The advantages of investing in Dubai real estate
Here are some of the advantages of investing in Dubai real estate:
- Stable exchange rate of the UAE dirham to the dollar for over 20 years.
- The UAE’s neutral policy: does not interfere in international disputes and welcomes equally everyone.
- Real estate is steadily increasing in value each year.
- The possibility of buying property under construction in installments.
- The city has a very low crime rate, safe.
- It is possible to buy real estate remotely, for cryptocurrency.
- Mortgage lending.
- No income tax.
- High demand for rental housing.
- The possibility of obtaining a resident visa for the purchase of real estate.
The who, why and where of buying property in Dubai
Since the beginning of 2022, according to the BBC, the proportion of foreign property buyers in Dubai has increased by 67%. The number of investors wishing to purchase a home in this emirate has increased significantly.
Buyers are interested in both villas and apartments, because each of them has its own motive. Living stock in the coastal zone attracts those who are interested in generating income from the apartment rented out. Luxury housing is also in demand. Thus, in the spring of 2022 was registered the most expensive purchase of the villa on the island of Palm Jumeirah, which was sold for 280 million dirhams ($ 75.5 million).
Do you need a residence permit when buying property in Dubai?
Many wealthy people are interested in buying a premium segment of real estate in Dubai, because it gives the opportunity to get a residence permit, provided that the cost of housing exceeds 750 thousand dirhams (204 000 dollars).
A resident visa can be issued for all family members. However, with the minimum investment residence permit will be valid for only two years. On large deposits are regulated two investment options with more favorable conditions. The most advantageous remains the “golden visa”. When investing more than 547,000 dollars in a residential property, a ten-year residence permit can be issued.
Can you see a high return on investment when buying apartments in Dubai?
In recent years, Dubai has been the venue for many business forums and events. During major exhibitions, such as Expo and Arab Health, the number of visitors to the emirate increases significantly.
This is an opportunity for property owners to earn extra income from short-term rentals, because the profitability of apartments in areas close to the venue of the exhibitions (such as Dubai Sports City) increases dramatically.
The UAE policy in every way contributes to attracting foreign investment, so the purchase of property in the largest metropolis of the world interests business people from all over the world. For many investors a weighty argument was the fact that the return on investment in Dubai real estate, the so-called ROI, has increased significantly since the beginning of 2022.
Despite the fact that prices are rising, the return on investment is still quite high and averages 5-6% per annum. In some locations it is possible to get rental income of up to 7%.
The highest yield is provided by apartments located in prime locations, on the sea front, close to urban infrastructure and transport interchanges. Such objects are in great demand for short-term rentals. Villas and townhouses are chosen by those who rent for the long term.
What do foreigners need to know when buying ready-made and under construction real estate in the UAE?
Special freehold-zones were created on the territory of the country where foreigners can buy any object of unlimited ownership. A complete list of such zones can be found on the official website of the UAE government. Here are put up for sale as ready to move objects, and real estate under construction (off-plan) in different price categories – and the budget segment, and premium class.
Buying real estate and commercial properties in Dubai, Abu Dhabi and other emirates is possible without even coming to the UAE. To do this, simply contact a reliable real estate agent which will find a suitable accommodation for your needs (rental income, own residence, a combination of these options, resale), and will take care of all the work on the registration of the transaction and the further management of real estate.
If you do not have the entire necessary amount, you can take out a mortgage, which is issued to non-residents at 5-7%.
This option is especially suitable for those who want to “park” a large amount of cash for a short period of time. In addition, you can immediately rent out the housing stock and cover the mortgage payments from the rent. The minimum down payment is 20% of the price of the property.
There is all the necessary information about the investment properties in Dubai for potential investors on the website Emirates.Estate. Specialists are ready to provide expert assistance in the selection and purchase of apartments for investment or as a place to live when moving. Start searching for your dream home now.