The real estate of Dubai is booming with the best offering in residential & commercial properties and is now enticing investors from different parts of the world. In this blog, we are mentioning some facts & figures that make Dubai properties a haven for foreign investors.
From the last couple of decades, Dubai real estate has become attractive to top international investors. Dubai real estate does not only present luxury but also better ROI in comparison to other big global real estate destinations which makes it the number one choice for global investors.
A few decades back, wealthy people used to invest their money in popular cities of western countries like London, Paris, Geneva and New York, etc. The entry of Dubai was late in real estate, but this city has overtaken many top western cities to appear as the top real estate investment hub. With continuously rising investments from different parts of the world, top leaders of Dubai’s real estate are now modifying their sales strategies according to the requirements of international investors.
The real estate of Dubai has maintained its top rank as one of the best investment destinations in the world in 2020-21 despite the pandemic. A huge number of real estate investors in Dubai are foreigners and we have data from reliable sources to support this fact.
Dubai logged a 65% rise in the overall real estate transaction and a 71% growth in value last year in comparison to 2020, as per the annual transaction report provided by the Dubai Land Department (DLD).
According to the reports, there were 6,897 GCC (Gulf Cooperation Council) investors, that recorded 8,826 investments worth over Dhs16.88bn. Totally, 6,097 Arab investors recorded 7,538 investments in last year with investment value exceeding Dhs12.4bn. And if we talk about foreign investors then 38,318 foreign investors settled 51,553 new investments with the value of Dhs99bn.
As per the studies conducted by different investment consulting firms, an average annual return on Dubai Housing is more than 5%. This is very much higher in comparison to annual rental yields in New York 3%, London 2.7%, Singapore 2.5%, and Hong Kong 2.5%. With an increase in the real estate value post-Covid era, Dubai’s real estate market has a much higher potential of even excellent returns.
The property value per sq. m. in Dubai is very much lower compared to other top western cities in the world. According to the top real estate portals in the world, the average cost of 120 sq. m. apartment in Dubai is $5900 compared to Hong Kong $28,500, London $26,200, New York $17,200, Tel Aviv $17,150, Geneva $16,400, Tokyo $16,300, Paris $15,860) & Berlin $7,320. Even home buying is much low-priced in Dubai compared to other top cities. Consistent with research by top advisors, the average residential property price in Dubai is very much affordable in comparison to other cities.
In this time when most of the developed & developing nations are charging heavy property tax from the property holder, property in Dubai has no property tax. According to the International Tax Competitiveness Index, property tax in different nations is 2.53% in the UK, 1.70% in France, 0.71% in Italy, and 0% in UAE. So, this is the most attractive factor that makes Dubai's real estate investment more enticing for foreign investors.
There is no doubt that the UAE is one of the safest countries in the world and this makes Dubai the best choice for foreign real estate investors. According to the different agencies in the world the United Arab Emirates is considered safest from a Law & Order point of view.
This is one of the lucrative & enticing steps taken by UAE to make the real estate sector more attractive for global investors. According to the new visa law linked to real estate investment offering an easy path to residency (subject to certain conditions).
