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. Invest in Dubai property
Buying a property in dubai for business or living is a good investment in 2023. Real estate objects increase in price every year, which attracts the attention of investors from all over the world due to their high profitability, stability and opportunities for portfolio diversification. We suggest watching the video Top 3 investment opportunities real estate in Dubai:
The video reveals in detail the topic of investing in the property of this emirate - in which 3 areas you need to invest money. Popular investment destinations in 2023 include EXPO 2020, Blue water Island and Downtown. Dubai is a unique city in the United Arab Emirates and is famous for its tall skyscrapers, luxurious villas and many business opportunities. In this article, we will explore why investing in dubai real estate can be your key to financial success.
The Dubai real estate market continues to grow rapidly, attracting both local and foreign investors. Reasons for this growth include economic stability, political support from the government, and a convenient location that makes the city an important center for commerce and tourism. Purchasing property in Dubai today can benefit you in the future as demand for residential and commercial properties continues to rise.
Dubai real estate investment
"Is it safe to invest in dubai real estate?", - is the first question asked by everyone who wants to invest in real estate in the central emirate UAE. Based on the statistics of real estate price growth for 2022-2023 from the Emarat Al Youm publishing house, it can be said with confidence that the value of property in Dubai increases by 7-10% annually. As for the security of the transaction when buying real estate, you should choose the right developer, as well as a sales agent.
Below you can view the statistics of property growth in Dubai over the past 5 years.
| Year | Percent growth |
| 2019 | 7.5% |
| 2020 | 6.3% |
| 2021 | 4.8% |
| 2022 | 5.3% |
| 2023 | 7.1% |
Note: The data is collected based on apartment prices from the Emaar, Damac, Nakheel developers, as well as from apartment owners from 2019 to 2023.
The same principles of investment funds work in United Arab Emirates as in European countries. The OAU Securities and Commodities Authority regulates compliance with the rules of the funds. All these funds are divided into local and international, which accept investments in local and international securities. Basically, the exchange of transactions takes place on the NASDAQ, ADX, DFM or NYSE exchanges.
Benefits of investing in Dubai real estate:
- High Profit Potential: Dubai is known for its dynamic economy and rapid growth, which creates a favorable environment for investors. Buying property in Dubai provides an opportunity to receive high returns in the form of rental payments. The steady demand for rental housing and commercial space in the city guarantees a steady stream of income for property owners.
- Favorable tax system: One of the significant advantages of Dubai is its tax system. There are no personal income taxes, sales taxes, or inheritance taxes in the city. In addition, there are special zones with tax incentives, which makes Dubai an attractive place to live and invest.
Variety of properties: Dubai offers a variety of properties, from luxury apartments and villas to commercial premises and hotels. This gives investors the opportunity to choose an object that suits their investment goals and preferences. The variety of real estate properties also ensures portfolio diversification and investment expansion.
Security and legal protection: Dubai is famous for its high security and legal system. Laws governing real estate transactions protect the rights of investors and ensure the safety of their investments. Investors can be sure that their property will be legally protected and they will be able to fully control their investments.
Possibility of obtaining residence permits: Buying a property in Dubai can open the way to obtaining residence permits in the United Arab Emirates. Dubai offers various programs that provide investors with the opportunity to obtain a residence permit, which provides additional benefits, including access to high-quality educational and health services for themselves and their families.
Buying a property in Dubai offers several benefits that make it an attractive choice for investors. Above are the top five benefits of buying property in Dubai. These are just some of the reasons why investing in property in Dubai can be attractive. When making an investment decision, it is important to consider individual factors and consult with experts in the field.
How to invest in Dubai Real Estate
Before you start buying real estate and expect a profit from it, you should choose the right area. Dubai has 9 districts and many communities that are different from each other. When choosing a home for investment, location should be taken into account. Certain areas, such as Dubai Marina, Downtown Dubai and Palm Jumeirah, offer attractive opportunities for investors due to their popularity with tourists and desirable habitability.
Popular areas of Dubai for investment in real estate for 2023:
Area | Average price per 1 square meter, AED | Upside potential |
Downtown | 18 000 - 22 000 | ↑ 5-7 % |
Jumeirah | 16 000 - 20 000 | ↑ 4-6 % |
Dubai Marina | 14 000 - 18 000 | ↑ 3-5 % |
The picture above shows an infographic on investment returns in various areas of the emirate for 2022 and the first half of 2023.
If you want to become an investor in Dubai real estate, follow the button below to the apartments for sale directory:
In order to purchase real estate in Dubai, a foreign investor must be a resident or have a visa to stay in the country. If the investor is not a resident, then he needs to obtain a visa to stay in the country, which can be issued for a period of 30 days to 90 days. It is also worth considering that in order to purchase a property in Dubai, an investor must have sufficient funds in their bank account to pay the cost of the property and all associated costs such as taxes, agency commissions, etc.
Dubai Residential Property Investment
Investing in Dubai real estate is a promising and attractive option for those who seek stable income and financial independence. Residential real estate provides stable rental demand and high potential for value growth. When choosing an investment option, you need to take into account your financial capabilities and goals, as well as seek advice from professional agents and market analysts to make an informed decision.
With the right approach, investing in Dubai real estate can become a long-term and profitable investment. Below you can look at 3 ways to use money wisely to invest in apartments, villas, penthouses or any other residential property.
Ways to Invest in Dubai Residential Property:
- 1. Purchasing apartments to rent out: Buying an apartment and renting it out is one of the most popular ways to invest in residential real estate. Stable demand for rental housing in Dubai provides a steady income to the investor.
- 2. Investment in residential complexes: Investing in residential complexes under construction or already existing allows you to receive a share of the total profit through the sale of apartments or rent.
3. Buying a Home to Own: This option can also be considered an investment as you keep your funds in real estate and also save on rent.
Where to invest in Dubai: new buildings or the secondary market
Investors in residential real estate can choose between new buildings and objects in the resale market. New buildings offer modern and innovative facilities with the possibility of buying at a better price. While the secondary market offers already built properties with the potential for renovation and improvement.
Comparison of new buildings and objects in the secondary market:
Factor | New building | Secondary housing |
Condition of objects | New and modern | Have a history of operation |
Prices | Usually more fovarable | May be lower or higher, depending on the area and the condition of the property |
Finishes and design | Choice of finishes and layouts | Necessity of renovation and modernization, if required |
Assignability | May be limited | Usually more flexible terms |
In addition to the main differences when choosing a real estate market, individual objects may have such amenities as a residence permit. All this should be checked with the realtor or the owner of the apartment.
Real estate price growth chart in Dubai
You can invest in Dubai real estate at the stage of starting sales, preparing a foundation pit, building a building, or after completion of construction, before obtaining permission to put the building into operation. Large and major developers in Dubai offer turnkey properties, renovated and furnished, as well as built-in kitchen appliances. According to data from the Dubai Land Department website, growth statistics and property values in Dubai over the past 5 years confirm the stability of the increase in property prices.
The graph of property prices in Dubai shows a decline in 2018, namely since the start of the global coronavirus pandemic. Starting in 2021, tourism is resuming in the emirate, and the number of relocators from Russia, Great Britain, India and other countries is also increasing. All this contributes to an increase in the average cost of prices for apartments, villas and other types of housing. For the 2nd half of 2023, the average housing price in the Dubai Emirate in dollars - 379 903 USD, and in dirhams - 1 395 400 AED. Local real estate agencies forecast an increase in prices for apartments and villas in the 4th quarter of this year. The sooner an investor buys an apartment and enters into an investment agreement, the cheaper the cost of investment housing will ultimately be.
According to data from the official website of the Dubai Land Department, as of April 2023, the average price of 1 sq. meters in residential complexes at the construction stage amounted to 4 706 USD or 17 300 AED. Based on this information, the figure below shows an infographic of the average cost per square meter in the areas of Dubai with the highest number of transactions for the first 2 quarters of 2023.
The graph clearly shows the difference in the cost of 1 m2 in different locations of the emirate. The following are average prices from Dubai developers for housing under construction in 6 areas:
- 1. Dubai Marina - $1 388 700 / AED 5 100 700;
- 2. Jumeirah - $1 874 500 / AED 6 885 000;
- 3. Business Bay - $558 000 / AED 2 049 500;
- 4. Dubai Hills - $583 000 / AED 2 141 000;
- 5. Meydan City - $447 000 / AED 1 641 000;
- 6. Motor City - $183 000 / AED 672 200.
According to the Dubai Land Department, the total number of investments in housing in the emirate in the first quarter exceeded 30 thousand transactions, which is 50% higher than the number of purchase and sale transactions carried out in the 1st quarter of 2022. Most of the transactions were carried out with off-plan real estate in Dubai.
The image above clearly shows the increase in the number of transactions for 2022-2023. The increase in demand for off-plan apartments is associated with low prices from construction companies. In August, 7,350 real estate transactions were carried out under construction with prices from developers, which is 10.4% more than in the previous month and 27.4% more than in August last year.
Investors who invest money at the beginning of the construction of residential complexes receive the maximum return on investment during the construction period, as well as after the completion of the residential complex. In addition to the benefit from rising apartment prices, there is an increase in profits from rental properties in Dubai. The figure below shows an infographic comparing investment returns in different areas of the emirate for the first half of 2022 and 2023.
At the end of the 2nd quarter of 2023, according to a study by the consulting group ValuStrat, the housing price index in the Dubai real estate market exceeded the price peaks since 2014 by 1.2%. The average income from rental housing from the 2nd quarter of 2022 to the 2nd half of 2023 increased by 35.85% - villas became 52% more expensive, and apartments are rented 19.7% more expensive. Next, you can look at the average prices for rental income from apartments and villas in dirhams UAE and US dollars:
- Studio - AED 49 950 / $13 600;
- 1 bedroom - AED 72 000 / $ 19 600;
- 2 bedrooms - AED 106 500 / $ 29 000;
- 3 bedrooms - AED 168 950 / $ 46 000;
- Villas - AED 394 500/ $ 107 400.
If you want to become an investor in Dubai real estate, click the button below to view the catalog of apartments for sale:
To purchase property in Dubai, a foreign investor must be a resident or have a visa to stay in the country. If the investor is not a resident, then he needs to obtain a visa to stay in the country, which can be issued for a period of 30 days to 90 days. It is also worth considering that to purchase real estate in Dubai, an investor must have sufficient funds in his bank account to pay the cost of the property and all associated expenses, such as taxes, agent commissions, registration of property in the registry, etc.
Invest in Dubai commercial property
Investing in commercial property in Dubai can be highly rewarding. The city's thriving business environment and strategic location make it an ideal destination for businesses looking to establish their presence in the Middle East. From office spaces to retail outlets and industrial warehouses, Dubai offers a diverse range of commercial properties that cater to various sectors and industries.
One of the key advantages of investing in commercial property in Dubai is the high rental yields it offers. With a growing demand for commercial spaces, rental incomes can provide a steady stream of cash flow for investors. Additionally, Dubai's business-friendly policies and tax incentives make it an attractive destination for multinational companies, further driving up the demand for commercial properties.
Examples of profitable investments in commercial real estate:
| Property type | Price in 2022 | Price in 2023 | Profit |
| Shop at Business Bay | $ 567 000 | $ 601 000 | ↑ 5.65% |
| Office in Burj Khalifa, Downtown | $ 679 000 | $ 734 000 | ↑ 7.49% |
| Commercial space in Jebel Ali Village | $ 719 000 | $ 782 000 | ↑ 8.05% |
| Restaurant in Dubai Marina | $ 6 000 000 | $ 6 800 000 | ↑ 11.76% |
| Retail space in Palm Jumeirah | $ 8 297 000 | $ 9 471 000 | ↑ 12.39% |
Note: Data taken from the Emirates estate website. All objects have a different area, as well as condition and other characteristics, which affects the purchase price and the benefits from the investment.
In addition to rising prices for commercial real estate, the average annual income from a business is 7-8%. This is a good indicator of investment in offices, shops, restaurants, warehouses and other real estate.
