Why invest in Dubai?
Dubai – one of the most alluring cities in the world has been given this recognition for a number of reasons, but one of the most prominent being the favourable investment advantages it has to offer.
In recent years, one of the main advantages of investing in Dubai has been the simplicity of visa procedures. With the emergence of the Golden Visa, residents now have a 10-year security guarantee with options for renewal. The visa is accessible to a broad range of individuals, including professionals, entrepreneurs, investors, and others. It also permits the sponsorship of family members. For those investing in real estate in Dubai, the visa is valid for individuals who purchase a property worth at least AED 2 million ($544,500). Another alternative is to buy one or more off-plan properties from licensed local real estate firms for at least AED 2 million ($544,500) in order to qualify for the visa.
Dubai offers strong rental yields, with long-term leases returning around 6-7% net and short-term leases returning around 10% net. The high ROI alongside the absence of property tax creates a highly attractive market for investors.
A growing number of expats are choosing to reside in Dubai. With over 200 nations living in the city, the demand for properties is continuously on the rise which creates ongoing investment opportunities. Residents of Dubai feel secure since the city has earned a reputation for being exceedingly safe. Furthermore, Dubai has the advantage of tax exemption. Without having to worry about paying taxes on your income, you can increase your wealth at a quicker rate. Additionally, Dubai offers a stable economy and has gained recognition as the business hub for the MENA region.
Lastly, Dubai has a high standard of living. From the incredible dining options, beautiful beaches, numerous activities to do and glorious weather, those who choose to reside in Dubai are looking to live a luxurious lifestyle. Real Estate agencies have an extensive inventory of properties in desirable locations with a range of budgets in mind, so that there is something for everyone.
How to invest in Dubai
Given the significant investment potential of Dubai, it is important to understand how to physically enter the city’s real estate market. The residential market in the UAE is projected to increase at a CAGR of 12.36% by 2026, demonstrating the market’s ongoing expansion.
When acquiring an off-plan property, the initial deposit of between 5-10% is substantially less than the 25% of a ready property, and the payment plans offered are both flexible and attractive. Additionally, there is a high possibility that the value will ascend just before completion and handover.
Researching the best place for you before investing is also crucial. ROI is greatly influenced by location, so it is also important to examine the value of other properties nearby and also search for the area’s key amenities, including restaurants, shops, transport links and medical facilities.
Off-plan investment will allow for the eligibility of the Golden Visa if AED 2 million ($544,500) or more is spent on one or more off-plan properties purchased from authorised local real estate.