Dubai sits at a strategic geographic crossroads connecting East and West, North and South, that acts as a natural bridge between producers, manufacturers and consumers. With 80% of the global population reachable within a single flight, Dubai is effectively bringing the whole world closer to it. Dubai stands as an important hub facilitating access to the vast USD 14.5 trillion global market, particularly as trade flows increasingly with a shift towards the East. Dubai has a reputation for stability, reliability and as a low-risk environment makes Dubai the perfect gateway to the Middle East, Asia and Africa.
Tax-Free Environment
The UAE’s main export is oil, a very profitable industry. And apart from oil, the UAE imports the vast majority of goods into the country. Dubai is very focused on attracting both skilled expats and global companies to the country and uses promising tax-free policies to achieve this goal. But of course, there are some exceptions, there are items or services that have a tax. However, for companies registered in the UAE and the residents can enjoy a primarily tax-free life.
High Rental Yields
While considering investing in Dubai real estate, rental yield undoubtedly plays an important role in the thriving Dubai real estate market. And there’s no denying that the emirate globally excels in offering high rental yields when compared to other major global cities, like New York, London or Hong Kong. Because Dubai real estate investments offer high rental yields, with figures up to 8% annually. Dubai’s appeal actually goes beyond high rental yield potential.
Types of Investment Options
Investment options in Dubai offer you a variety of choices. The types include apartments, villas, townhouses, penthouses and more. According to DXB Interact and the Dubai Land Department, apartments are the most popular segment in the local real estate market. In the year of 2023, the top-performing areas on the basis of value were Palm Jebel Ali, Dubai Marina, Business Bay, Downtown Dubai and Palm Jumeirah. By volume, the top 5 were Jumeirah Village Circle, Al Merkadh, Business Bay, Dubai Marina and Dubai Hills Estates.
Competitive Property Prices
Dubai's real estate compared to other major cities around the world, such as London, New York, and Hong Kong, Dubai's real estate prices are relatively low. This means that investors can acquire prime property in Dubai at a fraction of the cost of other major cities. Furthermore, Dubai's real estate market offers a wide range of investment options at different price points, from affordable studio apartments to luxury villas and commercial properties. Coupled with the availability of flexible payment options, this provides investors with a variety of options to choose from, depending on their budget and investment goals.
Safety and Security
In Dubai you can find the most safe and secure environment. Dubai has been strongly focusing on safety and security standards by upgrading the overall lifestyle quality and making significant investments in the tourism sector. With the implementation of various policy changes, including the expansion of the long-term golden visa scheme, the introduction of the green visa, retirement visa, investor visa and education visa, along with hosting Expo 2020, this government has perfectly managed the situation practically during the pandemic. Freehold Ownership for Non-UAE Nationals
Buying a freehold apartment or villa in Dubai means you are having full property ownership by including ownership of the land upon which the property is constructed. The Dubai Land Department officially registers the freehold buyer as the ‘Landowner’ in the registry and will issue a title deed for the property. With rights over both the construction and the land, one has the freedom to renovate and make structural changes according to that person’s personal preferences. Freehold property ownership in the UAE, especially in Dubai, is primarily available to expatriates and foreign nationals residing abroad. They can purchase ready or off-plan properties on a freehold basis in specific designated zones.
Population Growth
Dubai as an attractive magnet holds one of the world's fastest growing population rates, with an estimated increase of 10.7% annually. This increase in the population is reaching Dubai for buying properties in Dubai and this becomes a factor that drives the demand for residential and commercial properties in Dubai. The population growth has achieved something big in 2023 with a great 100K increase. From the research it is clear that the population reached 3.65 million in December when compared to 3.55 million in January.
Booming Tourism Industry
Dubai is still among the most popular destinations for people to view and visit. A number of people visit Dubai and this in fact helps the sector of Dubai real estate, because all the individuals who visit this metropolis city will be in need of a place to stay and so as a reason, the demand for short term rentals and investment properties increases. Now it has been already registered that for Dubai real estate, 2023 was a great performing year, So, in terms of Dubai tourism, this year saw more tourists than ever before by experiencing over 17 million footfalls in Dubai overnight and the record 105 million visitors of Dubai Mall are true evidence for the booming tourism industry of Dubai.
Resilient Market and Fair Valuation
Be it Covid, wars or financial crises – when other countries go through difficult times, Dubai serves as a haven for investment and continues to offer safety and luxury. The current level of global inflation is yet another case that exemplifies the emirate’s resilience, and this fact will continue to drive an inflow of investment. Seen in this light, global inflation is an opportunity for the UAE rather than a problem.
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