Dubai Properties - Investment Haven For The Foreign 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).

• 85000 real estate transactions registered
• Over 72000 new investments concluded by 52000 investors
• 65% growth in the number of transactions and 71% rise in value from 2020
• 2021 performance strengthens Dubai’s position as a global property investment hub

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.

• Dubai Marina - 7,968
• Business Bay - 5,687
• Al Thanyah Fifth - 5,092
• Al Barsha South Fourth - 4,813
• Hadaeq Sheikh Mohammed bin Rashid - 4,352
• Burj Khalifa - 4,279
• Wadi Al Safa 5 - 3,536
• Al Hebiah Fourth - 3,261
• Al Merkadh - 3,150
• Palm Jumeirah - 2,803
• Dubai Marina - Dhs28.6bn
• Palm Jumeirah - Dhs26.6bn 
• Hadaeq Sheikh Mohammed bin Rashid - Dhs15.8bn
• Burj Khalifa - Dhs14.2bn
• Business Bay - Dhs13.19bn 
• Al Thanyah Fifth - Dhs8.19bn
• Wadi Al Safa 5 - Dhs8bn 
• Al Yufrah 1- Dhs7.3bn
• Al Thanyah Fourth - Dhs7.2bn
• Al Hebiah Fourth - Dhs7.19bn

The factors which make Dubai’s real estate charming for foreign investors are given below:

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).