Why is Dubai a Safe Haven for Property Investors?
Within just a few decades, Dubai has undergone a major expansion in terms of infrastructure. Thanks to its amazing transformation, Dubai is now regarded by both residents and investors as the “City of the Future”. A clear, inclusive, and comprehensive developmental vision, coupled with world-class real estate projects has made Dubai a top choice for property investors from all over the world.
If you are thinking about investing in real estate in Dubai, this post is just for you. Follow along as we explore why Dubai is a safe haven for property investors.
1-A resilient city
It is no secret that the coronavirus pandemic, particularly during its peak, caused the global economy to slow down. Dubai, like any other economic powerhouse in the world, was also impacted. However, a decisive and quick response from the government to the Covid-19 pandemic, profitable investment options, and a range of government policies and initiatives made sure Dubai did not lose its appeal as a great option for investors. Thanks to all this, Dubai’s economy has rebounded well from the crisis and now all pieces are in place for it to become a futuristic city.
Here are some key statistics that prove Dubai’s real estate market is back on track and poised for solid growth.
- In spite of the coronavirus pandemic, the Dubai’s real estate sector witnessed record transactions in the past couple of years
- Starting 2021 real estate prices rose by a whopping 60%. Moreover, real estate analysts expect the property market will continue its upward trend in 2023 and beyond. This goes to show that right now is a great time to invest in a property in Dubai
- Dubai’s real estate offers better rental yields compared to other mature real estate markets in the world. Investors can reasonably expect a gross rental yield of anywhere between 5% – 9%.
- Despite the recent surge in real estate prices in Dubai, owning a property here is still cheaper than buying a property in many other global cities.
Dubai is politically stable, which in turn makes it an attractive place to invest. The UAE is a beacon of peace in the Middle East, though the same could not be said of many other countries in this region.
3-Gaining a residence visa in Dubai is relatively easier for real estate investors
People who invest in property in Dubai can attain a residence visa (subject to certain conditions).
- If you buy a property worth more than AED 1 million, you might be eligible for a 3-year residency visa
- Those who invest in a property worth more than AED 5 million might be eligible for a 5-year residency visa
- Real estate investors buying a property worth more than AED 10 million might be able to get a 10-year residency visa
We recommend you always check the official immigration authority website in Dubai for the latest requirements.
4-Favorable tax conditions
Favorable tax conditions also make Dubai a popular choice among global real estate investors. For instance, the virtual absence of property taxes and stamp duties — usually applicable in most global real estate markets — can help reduce the cost of owning a property in Dubai.
Business growth has always been a priority for the UAE government, which has always backed innovative approaches to make Dubai more attractive for investors. Some of the investor-friendly policies introduced by the government include:
- 100% foreign ownership of business in the majority of sectors
- The 5-year retirement visa
- The long-term visas for investors
These concrete steps have further increased confidence among foreign investors. Given all this, it comes as no surprise that in spite of the coronavirus pandemic, the Dubai’s real estate sector recorded transactions worth AED 24.5 billion in the first six months of 2020.
Finally, the government is doing many efforts in order to modernize and digitize the real estate sector in Dubai. In line with this strategy, The Dubai Land Department has launched the Real Estate Self Transaction (REST) in 2018. The REST platform covers all real estate transactions, including buying and selling, apart from real estate market services. It removes many limitations that one encounters in a non-digitized transaction process. For example, thanks to REST, property owners can now buy and sell properties from any part of the world. It allows customers to manage all aspects involved in a real estate transaction online, saving them both time and effort.