Investment in Dubai and UAE real estate is one of the few options when you will not have to bear substantial risks to gain high profits. Dubai has become much more attractive for business people, wealthy expats, well-to-do 55+ persons, and talented youth in the past 10 years.
See our high-profitability Dubai real estate market investments: Safa One Residential Complex.
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The reasons why investing in Dubai real estate is so attractive:
- Advantageous location of the UAE
- Stable economy and financial system
- Favorable tax climate
- Well-developed infrastructure
- Good conditions for business and life
Dubai’s real estate market is rapidly expanding, and all these advantages contribute to its attractiveness for investors. However, return on investment depends most of all on accommodation rent and purchase prices, and you cannot say that they are low or at least average. As the demand is growing and the supply is limited, Dubai real estate is becoming more and more expensive, and its basic indicators have long overtaken London.
The attractiveness of Dubai’s real estate market is explained by a number of factors. Some of them will be interesting for serious investors, while others are important for ordinary people that choose suitable accommodation for themselves. Some of these factors will also be appreciated by those who set asset protection and diversification as the top priority. Therefore, Dubai’s real estate market will be interesting for a wide range of people.
Where to invest in Dubai? Look at a popular high-profit real estate facility in Dubai: hotel and apartments in the Paramount Tower Hotel & Residences (completed).
Mind that you can discuss the practical aspects related to buying accommodation of any class in Dubai with our experts at an extended session!
Residence Permit in the UAE
Traditional ways of obtaining a residence permit (marriage, naturalization, or work) are complicated and too slow, and the probability of being turned down will always remain quite high. The investment residence permit under the Golden Visa program is much more profitable, and the expenses remain acceptable for the target audience. Additional advantages include higher return on investments and an extremely low risk.
Advantages of obtaining UAE resident status by investment in Dubai real estate:
- The right to legally stay in the country
- A possibility to obtain the tax residence, which will ensure considerable tax savings
- Zero expenses on accommodation rent in Dubai (which takes the lion’s share of expats’ expenses)
- A possibility to open an account with the bank
- The right to obtain a driver’s license
- Access to quality education for children
- Enhanced social security level
Looking for investments in Dubai? Consider an interesting opportunity: Cavalli Tower, a Dubai Marina Complex.
High Return on Investment and Low Risk
The accommodation rent rate reaches 8%, which makes Dubai one of the world’s leaders by this indicator. However, unlike other cities, the risks associated with investment in real estate remain low as the demand considerably exceeds the supply.
Dubai districts with the highest rental yield (according to Property Monitor):
- Al Barari – 8.3%
- Za’abeel – 7.28%
- Dubai Marina – 6.54%
- Dubai Hills Estate (Villas) – 6.04%
- Jumeirah Golf Estates – 5.98%
- Jumeirah Beach Residence – 5.82%
- Business Bay – 5.72%
- Downtown Dubai – 5.59%
- Palm Jumeirah Apartments – 5.34%
- City Walk – 5.24%
Invest in Dubai real estate to obtain high profits: Luxurious Apartments in DAMAC Towers by Paramount.
Choice of Wealthy Persons That Do Not Save on Comfort
The status of one of the world’s most expensive cities does not mean that Dubai lays emphasis on ostentatious luxury that is of no practical use. Dubai’s real estate market forms a special attitude to wealth and money, but it does not limit the choice of residents with a high level of income. In many ways, this is the key reason why investment in real estate and commercial objects remains profitable for such a long time.
Why Dubai:
- Unique architecture
- The style that combines oriental traditions, functionality, reliability, uniqueness, and modernity
- Peaceful co-existence of sky-scrapers and small cozy villas
- Well-developed infrastructure: the majority of places of interest is located within a walking distance
- Dubai’s real estate market leaves the choice to the buyer rather than imposes the facilities that are currently in demand
- A wide choice of accommodation for demanding customers (luxurious villas, hi-tech apartments, beach bungalows, fully-furnished and equipped apartments, etc.)
Look at one more example of profitable real estate in Dubai: A Villa in DAMAC Lagoons.
Zero Taxes
If you live in an ordinary house or apartment, the additional fiscal burden is hardly felt. However, Dubai’s real estate market is absolutely different as it is focused on premium-class elite accommodation, so taxes can reach a considerable amount. With that in mind, the emirate’s authorities set Dubai’s real estate tax to zero, and this fact is of critical importance to investors that often own several facilities.
Countries where the real estate tax equals zero:
- Bahrain
- Dominica
- Israel
- Cayman Islands
- Qatar
- Kenya
- Kuwait
- Liechtenstein
- Mauritania
- Malta
- Monaco
- Namibia
- United Arab Emirates
- Oman
- Norfolk
- Cook Islands
- Turks and Caicos
- Saudi Arabia
- Seychelles
- Faroe Islands
- Fiji
- Sri Lanka
It may seem to you that any of these jurisdictions is good to enter the real estate market and realize a complex investment project. However, even brief analysis will make it clear that there are practically no real alternatives. Dubai real estate is a rare example for the present-day economic situation when zero taxes are combined with excellent conditions for business, high security level, and independence in making important decisions. In addition, you have the same return on investment under practically any conditions.
Here is a unique real estate object that you may consider for investing in Dubai: Villas in Damac Hills with Design by Roberto Cavalli.
Zero Transaction Fees
Buying directly from the seller ensures considerable savings and practically excludes the risks connected with unscrupulous intermediaries. You cannot completely avoid additional expenses when you buy real estate in Dubai, but they will be relatively low. It will ensure high return on investment as a result, which explains why investment in Dubai real estate is so profitable.
Additional expenses incurred when you sell property in Dubai (according to propertyfinder, * – if applicable):
- Mortgage registration*
- Maintenance/operation expenses
- DEWA (Dubai Electricity & Water Authority) bill
- Central cooling bill
- Payment for NOC (No Objection Certificate)*
- Land department services
- Commission*
Additional expenses incurred when you buy property in Dubai (according to propertyfinder, * – if applicable):
- deposit (the amount is agreed between the seller and the buyer)
- Land department services
- Connection to the electricity network and centralized water supply system
- Utility services
- Mortgage registration*
- Commission*
Now that you know why invest in Dubai, consider an interesting option on Dubai’s real estate market: Golf Town, a 3-Bedroom Villa in the Elite District of DAMAC Hills.
Mind that the intermediary’s services are not mandatory. If you skip them, the commission will really equal zero!
Permanent Trend for Market Growth
The real estate market is subject to cyclical changes in many countries. Its condition depends on a number of internal and external factors, so it is quite hard to precisely calculate the risks. However, Dubai’s real estate market is quite another thing, and its profitability remains high for several years on end. If we talk about real estate that is still under construction, its cost doubles every 4 years, which makes investments in Dubai real estate safe and profitable. Relatively high profitability was preserved on the same level for the period of COVID-19 restrictions as well.
Dubai real estate – total cost of transactions:
- January – 21/5 (in billions AED, for 2021 and 2022, according to dxbinteract)
- February – 8/7
- March – 10/14
- April – 10/7
- May – 6/7
- June – 14/11
- July – 7/14
- August – 10/10
- September – 11/8
- October – 10/21
- November – 8/17
- December – 10/14
Look at real estate in Dubai you are sure to appreciate: Estate in Dubai – TRUMP VILLAS.
Favorable Tax Laws
Economy stimulation at the expense of low or zero taxes is not a new strategy: it has been long used by offshores and midshores and proved to work well. However, unlike the majority of low-tax or zero-tax territories, UAE (Dubai) is a respectable offshore that has a high reputation in the business world. Good opportunities for life and business given to wealthy individuals make investments in Dubai’s real estate market safe and profitable.
Zero taxes in the emirate:
- Personal income tax
- Corporate tax (there are exceptions, but most companies enjoy a zero rate)
- Capital gains tax
- Property tax
- Inheritance tax
- Profit tax
- Tax at the source (there are special cases)
In these conditions, the real estate market profitability is constantly increasing and investments in other economic sectors are less profitable, but only if we compare them with other countries.
Look at a special real estate investment opportunity in Dubai: A New Project: Safa Two in AL SAFA.
Good Climatic Conditions
The weather in Dubai is not considered a beneficial factor for comfortable life, but it is not true. Summer months can be really hot, but modern climate control systems ensure comfort in personal apartments and the majority of public spaces. High return on investments in Dubai real estate is in many ways explained by the weather if we look at the emirate as a resort and a tourist center.
Average temperature in Dubai (minimum/maximum in degrees Centigrade according to NOAA):
- January – 24/14
- February – 25/16
- March – 29/18
- April – 33/21
- May – 38/25
- June – 40/28
- July – 41/30
- August – 41/31
- September – 39/28
- October – 35/24
- November – 31/20
- December – 26/16
An attractive real estate investment opportunity in Dubai that is expected to be highly-profitable: Golf Gate Apartments in Damac Hills.
Personal Safety of Residents
The emirate has a very low crime rate if we consider all relevant indicators. The situation with corruption and bribery is a little worse, but the figures are still low: Dubai remains one of the safest cities for living by this indicator. These facts have a favorable influence on the real estate market and its profitability, making investment in Dubai accommodation attractive and cost-effective.
Top 10 of the world’s safest cities (integral crime rate index according to NUMBEO):
- Abu Dhabi, UAE – 12.0
- Ajman, UAE – 12.5
- Doha, Qatar – 14.0
- Taipei – 14.9
- Dubai, UAE – 16.3
- Quebec, Canada – 17.5
- Bern, Switzerland – 19.0
- Muscat, Oman – 20.1
- Munich, Germany – 20.5
- Hague, Netherlands – 20.7
Invest in Dubai’s real estate market at a profit: A Room in the Elite Radisson Hotel.
Attractiveness for Tourists
Extensive business opportunities, well-developed infrastructure, and zero taxes are exceptionally important factors that influence the return on investments in real estate. However, they are not of critical importance for those who visit Dubai as tourists. The emirate’s attractiveness for travelers is in many ways explained by unique places of interest, historical and architectural monuments, wonderful beaches, and other tourist points.
Special places to be visited in Dubai:
- Dubai’s fountains
- Burj Khalifa Tower
- The Dubai Mall
- Atlantis aquapark
- Burj Al Arab hotel
- High panoramic Aura Skypool
- Dubai Miracle Garden
- Mall of the Emirates
- Dubai Creek
- Global Village (a fair and an entertainment center)
Investments in Dubai real estate remain profitable and attractive for many years in succession. The emirate provides all conditions for comfortable life and business, as well as realization of projects connected with asset protection and diversification. It has a very low crime rate, resort climate, and top-notch infrastructure. It is only logical that return on investment in real estate is quite high in these conditions. Therefore, Dubai may become a starting point for practical implementation of a commercial project connected with sale and purchase of housing.
Invest in Dubai’s best projects to have guaranteed return on investment: Apartments in Safa Two Complex with a Right to Obtain a Residence Permit.
Look at some additional articles focused on the UAE:
- How to Get a Residence Visa in the UAE in 2023: a Detailed Guide
- How to Register an Offshore Company in the UAE?
- UAE Real Estate: Buy Dubai Property and Qualify for UAE Residence Visas
- Business Relocation to the UAE
- Resident Work Visa in the UAE
Discover Dubai in more detail:
- Start Your Business in Dubai: 25 of the Most Promising Ideas
- Remotely Open Personal Bank Account in Dubai, UAE
- Is Dubai an Offshore Tax Haven?
- 7 Best Places to Visit in Dubai in 2022
- How Is Dubai So Rich Without Taxes?
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