Is it Worth Buying Property in Dubai?
When it comes to the question of whether is it worth buying property in Dubai, you have to look at its economic viability. It is without a doubt that Dubai is one of the best cosmopolitan cities in the world. The kind of development the city has witnessed in the past several decades is nothing short of inspiring. In fact, it aptly serves as a blueprint for many other cities in the world that are on the verge of development.
Buying a property is a long-term financial investment. You need to consider crucial factors to find out if it is worth investing your hard-earned money into a property. This is why we are coming to your aid in finding the worthiness of the properties in Dubai. We are going to take closer a look into the workings of the real estate market of the city and help you make a pragmatic decision.
The Real Estate Market in Dubai
The real estate market in Dubai is often ranked among the most bona fide ones, and is rightfully so. It is one of the strongest pillars of the city’s and by large, the UAE’s economy. As such, it is a significant contributor to the richness of Dubai. You will get to witness the collaboration of modern-age architecture with ground-breaking property development in this city.
The diversity spawning from the real estate sector makes it a top-notch choice among varied foreign nationalities investing in Dubai. From ultra-luxurious villas to state-of-the-art apartments, from marvelous penthouses to splendid townhouses, and not to forget the profitable commercial properties, the market offers something for everyone’s taste with convenient packages.
Dubai’s real estate market has gone through tremendous growth and evolution and has come to be the face of the city’s prospering economy. It has defied the odds and has continuously strived for unprecedented development. By sourcing out profits from every given opportunity, Dubai has put the UAE on the global map of recognition and has established it as a formidable force.
Is Buying Property in Dubai a Good Investment?
To understand whether is it worth buying property in Dubai, you need to evaluate your investment from a bunch of different perspectives that will allow you to get a clear picture. To help you do that, let us take a look at some of the vital avenues and doors that such investments can open for you.
Reliable Economic Stability
The stable, diverse, and reliable economy of Dubai makes it a platform that you can count on. Its booming economy is not just limited to real estate but also aviation, tourism, and trade. The minimal risks associated with property investment in the city stem from its robust economic resilience that has time and again proven itself as a definitive real estate destination.
Dubai is the gateway to the Middle East for the world. The flow of trade and commerce in and out of the city emerging from its proximity to three continents – Asia, Europe, and Africa – makes it a pivotal global center point. Its ability to rise above global financial crisis quicker and more efficiently than most of the other economies in the world shows its prospects as a safe and secure market for property investments.
The proactive policies initiated by the government have further fostered a business-friendly environment in the city. As an investor, you can rest assured that the regulatory framework will protect your rights and promote a culture that enables economic stability and growth.
Long-term Residential Options
Dubai is the ultimate cosmopolitan destination that facilitates the urban lifestyle. As such, foreign nationalities are always scouting for avenues to get residential options in Dubai. The Government of the UAE has taken extremely progressive measures to foster the relationships between the country and foreign states, the primary among which is the long-term residential programs through visa options.
You will be delighted to know that investing in the real estate sector of Dubai will open your options for residential options; allowing you to reap the benefits of not only a favorable investment but also the security of long-term stay in the city, and by extension, the country. By investing in a property or a group of properties in Dubai worth minimum AED 2M, you will be eligible for the UAE Golden Visa.
This visa provides you the residential option for five to ten years that you can renew on the expiry of the term. All you need to ensure is the property or properties in Dubai you own are valued at least AED 2 million. With this visa, you can freely live, study, and work in the UAE while also enjoying various exclusive benefits.
Diversification of Investment Portfolio
Diversification is considered among the primary rules of investing as it helps increase the odds of profitable returns and lowers the chances of risks. Investing in Dubai real estate helps you do exactly that. This is especially true for foreign investors. When you buy a property in Dubai, you significantly lower the risks attached to the downturns of the domestic market as you spread your investments across varied regions.
Furthermore, when you hold assets in regions with different currencies, you can protect yourself from adverse currency fluctuations. The robust economy and the demand-supply dynamics of the city make way for immense growth for the prospects of your investment.
By diversifying your portfolio of investment, you are not making yourself vulnerable to the risks of a single economy. As you are not putting all your eggs in a single basket, you don’t run the risk of having financial instabilities due to the unpredictable oscillation of a single economy, which in this case, is the domestic market of your respective country.
Business-friendly Environment
The favorable business environment of Dubai is an indicator of the profitable possibilities of property investment in the city. The property acquisition process practiced in Dubai is a transparent one, making buying and managing properties a seamless investment.
The conducive trade market of Dubai, generated from the fact that it is at the forefront of global imports and exports, makes this place a strategic location for establishing businesses and profiting from entrepreneurship. It ensures that there is a constant flow of feasible business opportunities in the city with some of the leading global brands opening their chains throughout Dubai.
It results in more employment and a steady economy, keeping the purchase of properties in the city a lucrative investment. The city has done path-breaking work in simplifying regulations and eradicating unnecessary bureaucratic hurdles, and in the process, has led to the creation of a landscape where businesses thrive and see their finest potentials come to reality.
Unparalleled Taxation Policies
You can’t ignore the enormous fiscal benefits emerging from the highly advantageous taxation structure of Dubai. The city, and the country, largely practice a minimal taxation model which results in monumental savings for property investors. One of the interesting facts about Dubai is that it served a pioneering role back in 1894 by being one of the first cities in the world to grant complete tax exemption to all foreign traders.
The city doesn’t levy any income tax on individuals. There is zero corporate tax on people with a taxable income of less than AED 375,000. For those above a taxable income of AED 375,000, there is just a 9% corporate tax. Additionally, there are several provisions put in place in the city that help avoid any situations of double taxation on investments.
The unparalleled taxation policies practiced in Dubai were one of the primal reasons for foreign investors to get interested in investing in the varied sectors of Dubai, including real estate. All these have contributed to Dubai turning into a platform of endless opportunities for investors who don’t want to burn a hole in their pockets by paying heavy taxes. The relaxed taxation regime of Dubai is a major reason behind minimizing the cost of living in Dubai.
High Rental Yields
If you are wondering whether is it worth buying property in Dubai, you not only have to consider from the standpoint of residing in it but also have to look out how feasible it is from the perspective of rental yields and capital gains. Properties in Dubai offer some of the best rental yields in not only all of the Middle East but the entire world, giving your investment the seal of profitable security.
The favorable work climate of the city generates employment in huge strides, which, in turn, leads to an influx of settlement from people around the UAE and the globe to its shores. Thousands of people move to Dubai every year with the hope of a better future. This means that the demand for rental options is always high in the city. If you give your property for short term rental, then winter season in Dubai can be the most profitable one. The Return on Investments (ROI) generated from expats, tourists, and business travelers keep the city’s investment options highly relevant.
The high rental return serves as a steady source of income for those investing in properties in Dubai. The re-saleability factor of properties also heightens with the passing of time. Some of the best areas in Dubai with high ROIs are Downtown Dubai, Business Bay, Al Furjan, Dubai Marina, International City, Jumeirah Lake Towers (JLT), and Jumeirah Village Circle (JVC), among others.
High-end Infrastructural Development
Dubai has surpassed the existing boundaries of architecture by relentlessly evolving itself to be more adaptive and creative, establishing jaw-dropping infrastructures across the city. Its approach to imbibing high-end modern and reliable utilities in its properties has certainly paved the way for facilitating the ultimate urban lifestyle for its residents.
Whether it is the stunning skyscrapers or the extensive network of public transportation through the metro and trams, the access to world-class healthcare or the diversified educational curricula, the high-end retail sector or the bespoke amenities, Dubai checks all the boxes of infrastructural development.
The holistic lifestyle that it offers to its residents has successfully turned it into a safe haven for high-net-worth families in the process. The technological advancements in the city and engineering marvels keep bringing businesses and settlements to the city, making investments in properties worth your hard-earned money.
Safe Investment Environment
The regulation policies prevalent in Dubai ensure the protection of the rights of the investors, giving them the assurance that their money is protected and is in the right place. The real estate market of the city is well regulated and the government keeps a close watch on market processes to protect the investors from unlawful and misleading practices.
The Dubai Land Department (DLD) is tasked with the job of overseeing all sorts of property transactions and provides a transparent, safe, and secure system for the transfer of ownership and registration of properties. This ensures the transactions are maintained within a regulatory framework and investors are protected from fraudulent actions.
The existence of escrow accounts gives investors the safety assurance to invest in off-plan properties as they act as safe middlemen. These accounts store your money and release it to the property developer only on the fulfillment of pre-defined conditions or time frame, thereby protecting your investment.
Futuristic Sustainable Communities
The world is getting more and more conscious of the choices it is making, and in the future, it will hold cities accountable for their carbon footprints. Dubai has already taken itself ahead of its contemporary peers by practicing sustainable actions without making any compromises on the luxury of living opportunities.
The harmonious blend of technology with nature to facilitate modern living is seen throughout the city in varied forms; be it the building of abundant green spaces or the incorporation of energy-efficient designs in architecture. The city values its environment and continuously strives to take initiatives to make it more sustainable.
With the rise of global warming and various environmental hazards due to ill practices by mankind worldwide, it is believed that the demand for a sustainable and green environment will be extremely high in the future. Dubai continuously prepares itself for it and excels in responsible development, which means investing in the real estate sector of the city will bring you profitable as well as environment-friendly results.
Enhanced Quality of Life
The quality of life that Dubai offers to its residents is often considered among the highest living standards in the world. Be it the bespoke utilities or quick access to modern amenities, the residential properties in the city provide a dream lifestyle to their owners.
Since the city is home to multiple corporations, it generates huge employment, which in turn, brings global talent to its shores. In the process, a multicultural environment has been fostered in the city that celebrates diversity.
Not to mention, the low crime rate in the city ensures a safe environment for you to thrive. The city is well-maintained in terms of road network and visual aesthetics. It is a fantastic shopping destination and offers plenty of avenues for your leisure and entertainment.
To Conclude
Dubai is ahead of its time in terms of real estate investment options. So, to answer the question of whether is it worth buying property in Dubai, we can tell you that it certainly is. With the booming economy, high rental yields, relaxed taxation policies, and high quality of life, when you invest in properties in this city, you are setting yourself up for a long-term profitable investment.
Just make sure you are thoroughly researching the property you are purchasing and are following all the legal parameters to keep your investment valid and protected. Get to know the real estate market of Dubai up and close and make a safe investment choice.