Dubai attracts millions of visitors and real estate transactions that are worth billions of US dollars every year, so there is practically no downside to investing in this dynamic city with endless sunshine and striking new landmarks.
Browse our investor guide which will equip you with useful local knowledge and expertise advice from our agents, who are ready to help you kick start your investment journey.
Why invest in Dubai real estate?
1. Great location
Location is everything when it comes to real estate and the main reason why Dubai is a prime choice for investors around the world.
Its diversified economy, tax-free income policy, and strategic location between the East and West make it an ideal business hub, offering plenty of transport connections. Not only is Dubai a popular destination for expats (who are permitted to buy property on freehold ownership), it also attracts flocks of tourists every year in pursuit of beautiful beaches and grand adventures.
2. Bargain prices and tax-free income
Dubai boasts one of the most affordable property prices in the world. Unlike many other major global cities, real estate supply is not an issue for Dubai which helps keep prices low even for spacious, state-of-the-art, luxury homes. With US $1 million, buyers in Dubai can enjoy approximately 1,776 square feet of living space, which is nearly five times more than London, New York and Singapore.
Moreover, the sale or lease of residential properties are currently exempted from VAT in the UAE. If you are a landlord or investor, all of your sales revenue or rental income are essentially tax free, which is a major bonus compared with other metropolitan cities.
3. Sustainable return on investment
Return on investment (ROI) over a period of time is critical to any property owners’ success. Here in Dubai, investors alike can benefit from profitable returns as well as sustainable growth in a thriving economy.
Those looking to buy real estate in Dubai as a long-term investment can expect to receive an ROI between 5.5% and 8%. If you plan to lease your properties, Dubai offers great rental yields between 8% and 10%. New York (2.9%), London (2.7%), and Hong Kong (2.4%) pale in comparison despite also being global trade hubs and tourist magnets.
4. Easy to do business with
With all the financial advantages on its side, the real estate market in Dubai has another edge - easy processes and flexible payment options and competitive mortgages.
To purchase property in Dubai, all you need as a foreign investor is a valid passport and a reliable local agency who can take care of all the important formalities for you.
Generally, it takes about 30 days to complete the full transaction from when you sign the Agreement for Sale through to handover - a relatively smooth and speedy process compared with other major cities.
Buyers can also benefit from different payment options that offer a range of financial flexibility and route to ownership. Some examples include post-handover payment plan, 10/90 payment plan for off-plan properties, rent to own payment plan - all of which are designed to make the investment journey easy and accessible.
Our top tips for foreign investors
1. Decide on your investment strategy
Do you want to create a regular stream of income by leasing real estate in prime locations? Or perhaps, you’re looking to buy a second property for personal or commercial use?
Different investment goals will present different points for consideration and determine your scope of research before making a move.
2. Find the right location
The neighbourhoods in Dubai are rich in variety and character with each offering a unique living environment and access to a diverse range of amenities from schools and parks to health clubs and eateries.
Choosing a location that suits your investment goals will ensure your marketing efforts engage with your target audience directly, reach them more quickly, and generate stronger financial returns.
3. Work with a reputable and reliable agency
Established in 2017 by the Dubai government, the Real Estate Regulatory Agency (RERA) sets out policies and regulations for the property sector in Dubai. Not only does it provide a legal framework and consistency in standards for the sector, RERA also helps facilitate collaboration across different organisations to ensure continuous improvement for all.
So when you are looking for a property agency in Dubai, make sure their agents are RERA qualified. Here’s a few more qualifications and licenses that you can look out for during your research to give you peace of mind that your investment will be handled properly:
In addition to an Office Registration Number (ORN) and trade license from the Dubai Department of Economic Development, its agents should have their Broker Registration Numbers (BRN) and certificates from the Dubai Real Estate Institute (DREI).
4. Stay in the loop
With a projected economic growth of 4.2% in 2022, the UAE has a robust economy and Dubai is never short of infrastructure investment and commercial developments.
It’s a good idea to stay up to date on market trends, property prices, and general news about Dubai to make sure you can capitalise on upcoming trends and new opportunities that may impact the future value of your investment.
Is it safe to invest in Dubai?
Yes absolutely. The UAE stands out in the region with a relatively peaceful outlook, which enables its economy to grow.
The real estate sector in Dubai also benefits from a relatively advanced infrastructure with a clear governance framework to protect both owners and residents, such as introducing the escrow account system and ensuring fair market competition for all.
Moreover, the city’s extremely low crime rate and remarkable international schools make it a haven for young families from abroad. Even during the global pandemic, the UAE government managed to put the situation under control very quickly, causing minimal disruption to the economy.
How Dacha can help you?
If you are planning your next real estate investment in Dubai, our RERA qualified agents can provide expert advice tailored to your investment strategy and recommend properties that offer the best value for money, capital appreciation and sustainable returns.
Contact us today to find out more or book an appointment with our agent in our Dubai Marina office.
