Are you planning for real estate investment in Dubai? If yes, then there are many advantages of buying properties in Dubai, here are some of the best advantages which you should know before reaching any decision.
Many countries in the world face political instability & terrorism and many countries fight with each other over different issues. In the middle of all these turmoils, many people and businesses are shifting to the haven “Dubai” in UAE.
Yes, Dubai is considered a haven in the world. This status of “haven” is not earned in a single day or a couple of years. This status has taken almost 1 decade with purposeful developments and numerous reforms in rules & regulations. And now not only Dubai but the entire UAE is considered one of the most favourable places for tourism, a successful career, real estate investment and business developments.
This is one of the biggest reasons for many people to buy a home in Dubai. But as you know that every opportunity in this world comes with some pros & cons and Dubai properties are not an exception. So, let’s talk about the pros & cons of buying property in Dubai.
High Rental Yield
Real estate investment in Dubai is best for both residents & foreign investors. Rental yields here are comparatively higher than in many major cities of the world. According to different reports & statistics, the best communities in Dubai like Downtown, Business Bay and Dubai Marina generate a minimum of 10% rental yield.
| City | Net Rental Income in US$ | The Rental Income |
| Dubai | 29,100 | 5.82% |
| New York | 19,550 | 3.91% |
| London | 16,050 | 3.21% |
| Singapore | 14,150 | 2.83% |
| Hong Kong | 14,100 | 2.82% |
If we talk about the net average rental yield in Dubai then it is approx 6, making it the best destination for real estate investment. But, all you need to do is choose the right property from the right real estate developer.
Growth Of Population
Now Dubai is not only the fastest developing city but the fastest growing city in the world. Here the word “growth” denotes the rise of the population. This city has grown 1000% in just 4 decades. As of 2021, the total population of Dubai is 3.4 million. And the best thing is that most of the inhabitants of Dubai are residents of Non-GCC countries who are here from more than 190 nations. According to the expert, this figure will double in the next 10 years.
UAE Population in 2021 by Nationality
| Nationality | Population (in Million) | Percentage |
| India | 2.77M | 27.49% |
| Pakistan | 1.28M | 12.69% |
| Bangladesh | 0.75M | 7.40% |
| Philippines | 0.56M | 5.56% |
| Iran | 0.48M | 4.76% |
| Egypt | 0.43M | 4.23% |
| Nepal | 0.32M | 3.17% |
| Sri Lanka | 0.32M | 3.17% |
| China | 0.21M | 2.11% |
| All other countries | 1.81M | 17.94% |
| Total Expat Population | 8.92M | 88.52% |
World-class Infrastructure
This is one of the major points for which Dubai is famous in the world. Sky-touching towers, busy retail & business streets, and a world-class transportation network. Dubai has the world’s best-unmanned metro network, efficient water transportation system, buses and private taxis. Dubai International Airport & ports hold a vast quantity of goods. All these factors make Dubai a well-managed city.
No Taxes
If you buy a property in Dubai, you would save some big chunks of money because here you will have to pay 0% property tax, as you would in other major cities of the world.
| S. No | City | Tax | Tax Rate (%) |
| 1 | Hong Kong | $75,000 | 15% |
| 2 | Singapore | $68,580 | 13.7% |
| 3 | London | $11,650 | 2.3% |
| 4 | New York | $11,095 | 2.2% |
| 5 | Dubai | $0 | 0% |
As well, there are no other taxes you have to pay once you purchased the property.
Safety and Stability
Many home buyers & investors only prefer to buy a home in Dubai due to the sense of safe & stability. Despite many neighbouring countries of UAE suffering from civil war and financial crises, this country is known for political stability and friendly relations with other countries.
For the internal safety & security of the Dubai residents, there is an online Al Ameen Service to report crime anonymously and the police service is just a call away. As well as, the rules & regulations in Dubai are very strict and criminals dare not to do any crime. Crimes like theft & robbery are never heard in this city, as well as Dubai is Ranked 3rd Safest City for Solo Female Travelers. So, this is one of the best reasons to buy a property in Dubai.
An Aviation Hub
This is one of the most connected cities in the world and almost half of the world's population is just 4 hour's flight away. A few decades back Dubai Government recognized the value of the aviation industry to the UAE’s overall future development and has invested in building international airports, inviting globally reputed aviation companies, and investing significantly in the aviation sector. And now this sector contributes over 25% of Dubai’s GDP and helps in economic expansion, social development and the overall emergence of Dubai as a global real estate investment hub.
Major Facts About Aviation Industry in Dubai
Booming Tourism Industry
When it comes to tour & travel and adventure, this city has something for everyone. Here you can enjoy shopping in grand malls, and eye-catching views from the tallest towers, spending quality time on peaceful beaches, adventure in Dubai Safari, water sports, bungee jumping, clubbing and whatnot.
A Visa For A Real Estate Investor
One of the tempting factors for buying property in Dubai is that you can get a residency visa in Dubai very easily. Currently, real estate investors can apply for 3 types of residency visas with some terms & conditions.
With a real estate investment worth AED 0.75 Million in Dubai, you can apply for a residency visa for 3 years (renewable). The only condition is, the property should be located in an off-plan zone and not under any mortgage.
With the investment worth more than 2 Million AED, you are eligible to get a 5-year residency visa. But the condition is that investment funds should not be loaned.
If you invest in Dubai property worth more than AED 5 Million, you will be eligible for a 10-year residency visa (renewable). Again condition is the same, investment funds should not be loaned.
World-class Sports Events
Dubai is also famous in the world as a host of major sports typically associated with the upper class. With this, the city is at the centre of attention of business class home buyers & luxury property investors. Some of the major sports events in Dubai are:-
Consistent Development
A major advantage of real estate investment in Dubai is that every day something new launches here. In a metropolis where a lot of things have already been done to attract people from different parts of the world, as well as something new, is launched every day to attract more & more people. And if all these people visit Dubai continuously, they need a place to stay. So the occupancy rate is higher. This consistent development in Dubai is a healthy sign for real estate investors & property buyers.
Technological Advancements
The last but best advantage of buying property in Dubai, this city is evolving as a smart city. For example, RTA’s smart services in Dubai comprise approx 173 apps for the residents to make their daily life convenient.
Less Possibility of UAE Citizenship
If you are a foreigner and investing in Dubai Properties you can’t obtain citizenship in UAE, but you can apply for a residency visa. Only ex-pats & GCC nationals can get citizenship in UAE. This is the only disadvantage of buying property in Dubai.
There are many advantages & only one disadvantage of real estate investment in Dubai. Overall, properties in Dubai come with gains and no losses. If you are looking for the best real estate investment in Dubai then Dubai Housing can present you with the best options from top real estate developers.
