Dubai has established itself as a leading investor hub in addition to being renowned for its distinctive skyline, affluent lifestyle, and record-breaking statistics. Given the erratic market conditions the entire world experienced during the worldwide COVID-19 outbreak, Dubai has undoubtedly been put to the test.
Given its effective post-pandemic strategy and social and economic change, the emirate persevered despite all the commotion, solidifying its place as one of the most alluring cities for investment prospects.
The real estate market in Dubai was a clear indicator of the robust recovery because it accomplished so much, setting a record with a 73.7% increase in investments and a 65.6% increase in investors since 2020.
Real estate is still one of the most popular ways to maximize revenue, and Dubai has never been more profitable, luring investors from all over the world.
We have compiled reasons why investing in real estate in Dubai should be your next financial move since the city has evolved into a premier smart and sustainable destination.
- Increase in Population
We are all aware that Dubai is a multicultural city where residents come from over 200 different nations in order to advance their professional and commercial endeavours. As the city’s population continues to climb, the demand for homes also rises quickly to keep up with the growth, creating more investment opportunities in Dubai.
In fact, the completion of Dubai’s 2040 Urban Master Plan is expected to result in an almost twofold increase in the city’s current population of 3.5 million. The city’s population managed to quickly recover after the covid-19 setback, which led to an 8.4% population decline; it is now 100,000 greater than it was in January 2020.
It comes as no surprise that investors are attracted to Dubai given the city’s rapidly expanding population as a result of the tens of thousands of expats from around the world who move there each year.
- Security and Safety
The safety of Dubai is a key factor in luring more foreigners and investors to the emirate. In addition to effectively managing the global COVID-19 epidemic, Dubai is regarded as one of the safest cities in which to reside because of its extremely low crime rate and effective judicial system, both of which are made possible by the necessary security measures.
In Dubai, there is a robust regulatory structure designed to safeguard the interests of real estate investors. Dubai also has the most transparent and well-regulated real estate market in the entire MENA area, which draws more investors since they are confident in the security of their investment.
- Tax Free Investment
Dubai is the finest place to invest in real estate because there are no annual property taxes, income taxes, or capital gains taxes, so you won’t have to worry about them if you purchase a property there. Owners simply have to pay the one-time property transaction and registration costs after purchasing a property; no further or recurring taxes are due.
As a result, houses in Dubai are obviously much more affordable and, best of all, profitable than in other big cities where paying recurring taxes is required.
You can purchase a house in Dubai with confidence that you won’t have to continue paying taxes on a portion of your profits even though the corporate tax will be implemented because the real estate market has not been impacted.
- Better Returns
In comparison to its equivalent cities, like London and New York, real estate in Dubai offers a high return on investment. In fact, it’s a rewarding experience because Dubai consistently provides lovely apartments in sought-after neighbourhoods that offer outstanding returns.
Due to the absence of property taxes, investing in real estate in Dubai may result in a significant return on investment. You may expect returns of over 6%, with double digits in important neighbourhood’s, making it one of the best real estate investments.
Additionally, investors benefit greatly from the rising cost of real estate in Dubai. In fact, compared to big cities like New York, Hong Kong, and Paris, the Dubai Property Market is one of the only undervalued markets in the world, according to a new analysis. With this in mind, selling the property and reinvesting the proceeds in the future is a simple way to generate a good profit.
- Investment Friendly Schemes
One of the main advantages of investing in real estate in Dubai is the possibility of receiving a resident visa based on your purchase of property there. If the property is prepared and not financed, it is available to foreign nationals who have a minimum investment of AED 1,000,000 for a freehold property in Dubai.
Dubai saw a large increase in building as a result of non-UAE nationals being able to wholly own property there without the necessity for a local partner. This attracted foreign investors to the city’s real estate market.