Besides being known for its iconic skyline, opulent lifestyle, and record-breaking stats, Dubai has built its reputation as a top investor hub. That being said, Dubai has certainly been put to the test given the unpredictable market conditions the entire world encountered during the global COVID-19 outbreak.
Despite all the chaos, the emirate remained resilient throughout, given its successful post-pandemic strategy, as well as social and economic reform, reinforcing its position as one of the most appealing cities for investment opportunities.
The strong recovery was evident in Dubai’s real estate sector, as it remarkably achieved so much, with a record 73.7% growth in the number of investments, as well as a 65.6% rise in the number of investors since 2020. Since real estate still remains one of the most preferred means of building wealth, Dubai has become more lucrative than ever, attracting investors from all over the world.
Growing Population
We’re all aware that Dubai is a cosmopolitan city whereby people from over 200 different countries reside in hopes to expand their careers and businesses. Since the population of the city is ever-growing, the demand for properties is increasing accordingly at a rapid pace to accommodate this rise, bringing in more investment opportunities to Dubai.
In fact, Dubai’s population, currently around 3.5m, is projected to nearly double in 20 years, coinciding with the completion of Dubai’s 2040 Urban Master Plan. Despite the COVID-19 setback, which resulted in an 8.4% population decrease, the city’s population still managed to bounce back swiftly, with the population currently 100,000 higher than it was in January 2020.
With a fast-growing population thanks to thousands of expats from all over the world relocating to Dubai annually – it’s surely no surprise to see investors flock to the city.
Fast-Paced Economy
Another huge benefit of buying property in Dubai is that it’s benefiting significantly from its booming economy. As the strategic midpoint between the East and West, Dubai conveniently serves as a major regional hub for businesses who want to expand in either, or both, directions.
Thanks to its highly diversified and stable economy, with revenue generated from tourism to trading, it’s attracting foreign investors more than ever. In an effort by the government to establish Dubai as the heartbeat of business and commerce in the MENA region, its economy has since tremendously improved across all sectors and witnessed incredible capital growth. Going from strength to strength, be it through Free Zones or Expo 2020, Dubai has undeniably become the largest business hub in the Middle East.
Development and Innovation
What helps Dubai’s economy and population grow at tremendous rates, is its state-of-the-art developments and innovation, from the tallest buildings to the largest airports. It’s the ‘City of Superlatives’, as well as the CITY OF INNOVATION , after all!
Balancing environmental, economic, and social sustainability with a future-forward vision, there are constant developments that attract the masses to invest in Dubai, as the innovative city aims to make every aspect of life hassle-free. Therefore, you can always expect something new and exciting, which is one of the biggest benefits of investing in Dubai.
High Standard of Living
Dubai is globally recognized as one of the best cities to invest in due to its excellent quality of life and world-class infrastructure. With top-quality dining venues, luxurious lifestyle, beautiful beaches, connectivity, and state-of-the-art entertainment and recreational facilities, it’s hard to miss why Dubai is a haven for investors!
In regards to Dubai’s real estate, various developers have a growing inventory, offering stunning properties, increasing in upcoming and desirable areas. Not only that, one of its major strengths is that it’s quite affordable in comparison to some other major cities, meaning there’s something for everyone according to their budget.
Safety and Security
Dubai’s safety plays a vital role in attracting more expats, and investors, to the emirate. Besides handling the global covid-19 outbreak successfully, Dubai is known to be one of the safest cities to generally live in as it has a very low crime rate and efficient legal system, thanks to its requisite security measures.
In terms of real estate investment, there’s a strong regulatory framework aimed at protecting an investor’s interests in Dubai. Dubai is also the most transparent and regulated property market in all of the MENA region, further attracting investors as they know their investment is secure.
Tax-Free Investment
If you buy a property in Dubai, you don’t have to worry about tax, as the emirate has no annual property tax, income tax, or capital gains tax, making it the best city to invest in real estate. Once a property is purchased, owners will not pay additional or ongoing taxes in the future, only the one-off property transaction and registration fees.
Needless to say, this makes properties in Dubai highly affordable and best of all, lucrative, compared to other major cities, where paying periodic taxes is mandatory.
You can buy a property in Dubai and be rest assured you won’t have to keep paying a portion of your earnings!
Higher Returns in Dubai’s Real Estate
Real estate in Dubai offers a high return on investment, significantly higher than those offered in its counterpart cities, like London and New York. Indeed, it’s a rewarding experience as Dubai always has attractive properties in popular areas which offer exceptional returns.
Investing in a Dubai property could potentially generate a high return of investment due to a lack of property taxes. Offering one of the highest returns on property investment, you can expect returns of above 8 %, with double digits in key neighborhoods.
Investor-friendly Policies
One of the biggest benefits of investing in a Dubai property is that you can be granted a resident visa based on your property investment in Dubai. This is applicable to foreign nationals who have a minimum investment of AED 1,000,000.
The Dubai Land Department (DLD) now permits property investors (applying for the three years’ investor visa) to submit visa applications linked to mortgaged properties provided that either 50% of the property value or a minimum of AED 1 million has been paid to the mortgagee bank. The investor will need to submit a NOC from the bank, a mortgage bank statement and their visa application.
Since non-UAE citizens are also allowed to fully own property in Dubai without the need for a local partner, the city witnessed a huge surge in construction, attracting foreign investors into the city’s real estate market.