Dubai, the most populous city in the United Arab Emirates (UAE) established in 18th century as a small fishing village and is now considered a cosmopolitan metropolis with popular tourist destinations, lifestyles, and local culture.
Besides all this, Dubai never fails to attract real estate investors. It is one of the most appealing cities for investment. Being world-famous for its endless skyline of skyscrapers, it also influences real estate investors for its luxurious and glamorous affordable properties.
Talking about the year 2022, the real estate market recorded 25,972 transactions in the first quarter which is the highest number and volume recorded since 2010 and 2014 respectively; stated to Mo’asher, a UAE-based real estate portal.
“We saw quite a few records broken in Q1 2022 starting with January and February, which were both the highest months on record, respectively for their months in regards to sales transaction value and volume. March had the highest month ever on record for sales value and the highest month in the past seven years in terms of sales transactions. These upward trends have continued since 2021 and I expect healthy growth for both sales volumes and values this year due to the proactive and bold measures being put in place by the government. In addition, Dubai continues to thrive and has become the economic hub of the region attracting more business and foreign direct investment with its encouraging and innovative environment. As all the signs are pointing toward 2022 continuing on an upward trajectory, particularly in prime, popular areas and in particular segments such as villa/town/house and luxury. It will be interesting to see how each segment and area will take shape in 2022, as each has its own unique class of characteristics, demand, supply and trends” said Lynnette Sacchetto, a leading
Hence before searching for properties this year in Dubai, it is important to consider the top 7 reasons to invest in Dubai:
1. High Return on investment
Dubai is an ideal place to invest in real estate. It is one of the highest, most attractive and steady investments. In investing in real estate Dubai, 8-15% of returns can be expected as it has the fastest-growing economy in the world, with a stable and business-friendly environment. So, investment in Dubai real estate is worthwhile. Not only in terms of capital appreciation but the high rental yield is also attained from Dubai properties, hence making it a lucrative investment.
2. Tax free and free hold property
Dubai makes the investment more lucrative as it offers zero property tax and zero capital gains tax. So after buying a property in Dubai an investor can get rid of property taxes which makes it affordable. And also it can be used as a great source of income by renting it out without paying additional taxes in the future. Along with this, it offers freehold properties, which make foreign investors use the property for any purpose.
3. Buy property with crypto currency
In this digital era, Dubai makes it more convenient to buy a property as many sellers accept cryptocurrency. Digital transactions are fast, cheaper, and easy. There is no third party involved hence reducing the costs. Only 1% of the transaction fee is required. Also, it is a more transparent mode of transaction than ancient modes leading to checking the legitimacy of investors. Hence it provides security to both investors and sellers.
4. Opportunity to get a UAE resident visa
UAE government made some changes in resident visas for foreign investors. It is a lucrative opportunity as investment cost is reduced along with increased visa duration. An investor holding ownership of a property worth AED 2 million (approx. INR 4.2cr) is eligible for a resident visa for up to 10 years which was earlier applicable for 5 years with the investment of AED 5 million (approx. INR 10.4cr). According to the proposed modification, an investor can take a loan from local banks while investing in real estate.
5. Secure Investment
“I have always believed that Dubai’s real estate market is more strongly placed than most of the developed real estate industries if compared worldwide,” said Atif Rahman, director, and partner at Danube properties. Safety is not an issue while thinking about real estate investment in Dubai. The best protection is offered by Dubai’s RERA for foreign real estate investors. Property sellers need to take permission from RERA to take account of investors’ money deposited in escrow accounts.
6. Growing population
Dubai has shown immense growth in population. The emerging population of Dubai has put a great impact on real estate. As per countrymeters.info, the population of Dubai stands at 10.28 million in 2022. Expo2020, the global event happening in Dubai, offers various job opportunities which will lead to the population growing immensely. The current population of Dubai is 33.3 lakhs estimated to be increased by 1.47% from January 2021. It is a cosmopolitan city where people from over 200 countries reside. Its emerging population gives a hike to careers and businesses. All these people need a place to stay hence giving rise to real estate investment.
7. Exotic Lifestyle
While thinking about driving a Porsche or dining at the world’s tallest tower, Dubai has a lot more to offer. The lavish lifestyle of Dubai has driven the real estate market as well as influenced many real estate investors. Dubai has all the activities that one can think off, like diving, skiing, fishing, golfing, sailing, etc. Dubai has taken the top position in terms of luxury lifestyle as compared to other cities in the world. With world-class infrastructure and exotic lifestyles, various developers are offering eye-catching inventories. Hence, Dubai has something to offer for every budget. So, for real estate investors Dubai is a profitable place for making an investment.