10 Reasons to Invest In The Dubai Real Estate Sector

Dynamic, energetic, and one of the fastest-growing cities on the planet, there is plenty to attract investors towards the glamorous city of Dubai. Real estate in the city is at a premium, making it a solid investment for any portfolio, especially if you’re looking to build your buy-to-rent segment. If you are still not sure as to whether you should invest in Dubai real estate, here are ten reasons why we believe it’s a smart business move.

1. High rental yield

Compared to other major cities, the initial cost of purchasing a property in Dubai is lower than, for example, London or New York. That lower initial purchase cost means that rental yields are higher, giving you a return of between 6-10% gross yield return, compared to around 3.2% in London.

2. High demand

While the global Covid pandemic put the brakes on development across the planet for two years, the recovery has been more marked in Dubai than almost anywhere else. The city is on an upward trajectory with increased domestic and international demand for high-quality rental properties. International investors are also seeing the luxury end of the market as an attractive prospect, and demand for villas and premium city apartments in particular is very high.

3. Tax incentives

The UAE’s VAT law means that anything designed for habitation is designated as residential and therefore qualifies for 0% VAT. Any residential property available from within three years of completion also qualifies for 0% VAT applicable, increasing the attractiveness of the investment. You’ll also never be charged any annual property tax, enabling you to build up a larger, more complex portfolio.

4. A safe, stable country

Dubai is regarded as one of the safest countries in the world, with an exceptionally low crime rate per capita as compared to other cities around the world. The World Economic Forum rates the UAE as the third-safest country in the world. This security is a big draw for ex-pats who are looking for a safe place to bring up their families.

5. A high standard of living

Life in Dubai is good. The standard of living is exceptional, from safe, clean streets, plenty of green spaces, a good work/life balance, and a strong and stable economy. One such example of a top-notch community development project is Tilal Al Ghaf. This high standard of living is a big draw for families and international residents, which in turn increases the demand for property in Dubai and across the UAE.

6. A regulated market

With a transparent real estate market that’s carefully regulated, purchasing property in Dubai is a safe and secure investment. All real estate data is publicly available as a result of an initiative from the Dubai Land Department, making it easier to check details before purchasing.

7. A strategic location

Not only is Dubai one of the central hubs of the UAE, but its location puts it within easy reach of both Asia and Europe. This strategic location also has outstanding aviation links, making it incredibly easy to fly to Dubai from anywhere in the world. This alone has attracted major investors and corporate clients, and has also increased the volume of tourism traffic to the region.

8. A world-class infrastructure

Because Dubai is a relatively new city, it has the advantage of being able to look at how other cities have designed their infrastructure, and learn from them. The result is urban planning that considers details such as population movement and access to amenities that is far more ergonomic and sustainable. Green development is key, and Dubai’s use of resources makes it a surprisingly eco-friendly city too, a factor that is going to play an increasingly important role in real estate portfolio planning in the future.

9. Property Investor Visa

If you’re planning to invest in Dubai real estate priced above AED1,000,000 (around US$272,294 dollars), you are eligible to apply for a Property Investor Visa. This is a renewable visa that allows you to apply for an Emirates ID (vital for life in the UAE), a UAE driving licence, and sponsorship for your family.

10. It’s a great place to live!

Finally, with fantastic weather, world-class sporting events, family-friendly attractions, and a high quality of life, Dubai is simply a great place to live. Energetic, bold, and exciting, Dubai is increasingly attractive for international investors looking for a truly dynamic city to live in. With championship golf courses, premier events, and plenty of opportunities to relax and have fun as well as career opportunities, living in Dubai gives you that much-sought-after work/life balance.

If you’d like to find out more about expanding your Dubai real estate portfolio, talk to one of our team today for impartial, expert advice.