Are you considering investing in real estate? Have you ever considered Dubai? Here I, Arshad Darbar the CEO of Housefinder Real Estate, can share some valuable information on real estate financing in Dubai.

Investing in Dubai real estate market can be an amazing preference for many reasons. However, apart from the advantages, there is some hidden information that makes Dubai even more attractive to buyers.

In this article, I’ll uncover the lesser-known facts and share ten important reasons why the real estate market in Dubai is a smart move.

Unknown Facts Of Investing In Dubai Real Estate

Low Acquisition Cost

One of the main attractions of the Dubai property market is its low acquisition cost. Compared to other major cities around the world, buying property in Dubai is more affordable.

For instance, the cost per square foot in Dubai is about $468. In contrast, in London, it’s around $3,208. This significant difference makes Dubai an attractive option for investors who want more value for their money.

The lower acquisition cost is due to several factors. Dubai’s strategic location as a trade and travel hub has led to substantial development. However, unlike cities with historical constraints, Dubai has plenty of space to expand. This availability of land, combined with modern construction techniques, keeps the prices competitive.

Higher Rental Return

Rental returns are crucial when considering real estate investments. In Dubai, the rental market is thriving due to the high number of international residents. About 85% of Dubai’s population is from other countries.

This has boosted the rental market significantly. Some areas in Dubai offer rental returns of up to 10%. Comparatively, London offers around 3.21%, and Singapore only 2.83%. On average, rental yields in Dubai are not less than 5.82%. This makes investing in Dubai real estate a smart move for high rental returns.

Dubai’s attractive rental returns are driven by its dynamic economy and vibrant tourism sector. The city attracts millions of visitors annually, and many choose to stay for extended periods, driving up demand for rental properties. Additionally, Dubai’s tax-free status on rental income further enhances the profitability for investors. 

Rapid Population Growth

Dubai’s population has been growing steadily. From 2008 to 2018, the city saw an 86% increase in population. Today, Dubai is a cosmopolitan city home to people from over 200 countries. This rapid growth has fueled the demand for property, making the real estate market in Dubai one of the fastest-growing in the world.

This population growth is due to Dubai’s position as a global business hub. The city offers numerous opportunities for professionals, entrepreneurs, and laborers from around the world. 

Additionally, the quality of life in Dubai, with its modern infrastructure, healthcare, and education systems, attracts expatriates and their families. 

Also Read: Sharjah Chamber Highlights Real Estate Investment Opportunities At Acres 2024

Better Return On Investment (ROI)

Dubai is known for offering better ROI compared to other major cities. With advanced facilities and modern amenities, it has become a top destination for real estate investors. Whether you are looking to buy a property for personal use or as a rental investment, Dubai promises a good return on your investment.

Several factors contribute to Dubai’s impressive ROI. The city’s strategic economic initiatives, such as the Dubai Plan 2021, focus on sustainable development and innovation. These initiatives aim to diversify the economy and attract more international business.

Additionally, Dubai’s world-class infrastructure, including its transportation and communication networks, makes it an attractive place for both residents and businesses. 

Resident Visa Through Property Investment

Did you know that buying property in Dubai can make you eligible for a resident visa? This visa is valid for ten years and offers many conveniences. It allows you to reserve a car, get a driver’s license, and open a bank account in Dubai. The resident visa also extends benefits to your family, making life in Dubai easier and more secure.

The resident visa through property investment is part of Dubai’s strategy to attract foreign investment. This policy offers security and long-term stability to investors and their families.

Furthermore, the visa can be renewed as long as the investor maintains ownership of the property. This residency option provides investors with a sense of belonging and the ability to enjoy all the benefits that come with living in Dubai, including its excellent healthcare, education, and lifestyle amenities.

World’s First Climate-Controlled City

Dubai has plans to build the world’s first climate-controlled city. This ambitious project will cover 48 million square feet and include apartment complexes, around 100 hotels, the world’s largest indoor amusement park, and an entertainment center that can hold 15,000 people.

The details of this project were revealed at the Dubai Expo 2020, highlighting Dubai’s commitment to innovation and modern living.

This climate-controlled city, known as the “Mall of the World,” will be a groundbreaking development. The project aims to provide a comfortable environment regardless of the harsh desert climate.

By controlling the temperature and creating an enclosed city with walkable streets and interconnected buildings, Dubai aims to attract tourists and residents year-round.  

Freehold And Leasehold Areas

In Dubai, property buying areas are categorized into freehold and leasehold areas. In freehold areas, both Emirati and non-Emirati buyers can purchase the property. In leasehold areas, non-Emirati buyers can lease property for up to 99 years but cannot buy it outright.

However, Emirati buyers can purchase property in both types of areas. This distinction offers flexibility for different types of investors.

Freehold areas are typically located in some of the most desirable parts of the city, such as Downtown Dubai, Dubai Marina, and Palm Jumeirah. These areas attract foreign investors due to their strategic locations and high-quality developments.

Leasehold areas, while not allowing outright purchase, still offer long-term investment opportunities. The 99-year lease is practically a lifetime investment, providing a stable and secure option for non-Emirati investors.

No Property Tax

One of the most appealing aspects of investing in Dubai real estate is that there is no property tax. The government of Dubai has not imposed any tax on property ownership. This tax-free environment has significantly boosted the real estate market, making it an attractive investment destination.

The absence of property tax means that property owners do not have to worry about annual tax bills, which can be substantial in other countries. This increases the net return on investment and makes the overall cost of property ownership lower.

Additionally, the lack of property tax contributes to the affordability of properties in Dubai, further attracting investors from around the world.

Hub For Global Events

Dubai is rapidly becoming a hub for global events. From international conferences to world expos and major sports events, Dubai hosts a wide range of activities that draw global attention. This influx of visitors and international interest has positively impacted the real estate market, creating more demand for property in the city.

Events such as the Dubai Shopping Festival, the Dubai International Film Festival, and Expo 2020 bring millions of visitors to the city each year. These events boost the local economy and create a vibrant atmosphere.

The increased demand for short-term accommodation during these events also benefits property investors, as they can capitalize on the high rental demand.

Safe And Secure Environment

Safety is a major concern for investors. Dubai is known for its low crime rates and secure environment. This sense of safety attracts many people to live and invest in the city. Knowing that your investment is in a secure place can give you peace of mind and encourage you to invest more in the future.

Dubai’s commitment to security is evident in its advanced policing and surveillance systems. The city’s law enforcement agencies are equipped with modern technology and highly trained personnel, ensuring a safe environment for residents and businesses.

Additionally, the government’s strict regulations and efficient legal system contribute to the overall safety and stability of the city. This secure environment is a significant factor for investors, as it ensures the protection of their assets and the well-being of their families.

Conclusion

As CEO of housefinder real estate, let me share my conclusion on the unknown facts of investing in Dubai Real Estate. It’s incredibly attractive for investors like us. 

We benefit from low acquisition costs, high rental returns, and no property taxes. Dubai is a safe city with rapid population growth and hosts many global events. 

Exciting projects, like the world’s first climate-controlled city, show Dubai’s commitment to growth. Investing in Dubai real estate market can be very profitable and full of opportunities. With careful planning and understanding, I assure you that we can achieve great returns.