Dubai is a city with a colossal influx of people. The tourist destination alone provides 17 million people annually. Even amid the pandemic in 2020, the city received 5.5 million people.
Other categories of the population are also interested in the largest city of the UAE: expatriate foreigners, representatives of business and industry, highly qualified labor migrants, etc.
There is a high demand for rental housing, and the market responds with a corresponding supply - 60-65 thousand new real estate objects are built annually, and developers report an annual profit growth of 250%.
Taking into account the economy growing by 3-4% per year, one can understand that the Emirate's market has something to offer to potential investors.
Real estate investments in Dubai with high ROI
Dubai is a popular tourist destination and an important economic hub in the Middle East. The city has a wide range of districts: elite residential and resort, industrial and financial, a number of special economic zones.
Each area offers a rich selection of properties, but these are the villas that are the highest yielding properties in Dubai. In January-May 2021, 81 villas were sold on the Palm Jumeirah alone, worth about 2.7 million US dollars each. In April 2020, $ 30.2 million worth of villas were sold on the island.
However, the Emirate also offers a large list of other objects for profitable deposits:
An investor with a medium capital will find it attractive to invest in apartments in Dubai, of small and medium size, studios, small villas with one or two bedrooms.
Prices in this category are in the range of 300-400 thousand US dollars. For comparison, in London the price of such objects fluctuates around $ 1 million.
A large investor may be interested in buying elite villas in Dubai but townhouses, penthouses and apartments with six or more bedrooms are also of interest.
Prices for this category of housing are in the range of USD 2.7-4.5 million, in some cases - USD 10-12 million.
The high construction pace of in the Emirate opens up opportunities for wide off-plan investments in Dubai (acquisition of an object at the initial stages of construction or at the stage of a project).
Such projects are estimated at about 200 thousand US dollars and are of particular interest to the investor.
Real estate return on investments in Dubai is one of the highest in the world, both in terms of return on investment (ROI) - from 8 to 15%, and gross rental income - about 5.19%.
Objects under construction can bring income up to 80-90% of the invested funds.
Investments in Dubai, UAE
The Emirate is developing programs for simplified obtaining a residence permit for real estate investments, a system of "golden visas" for large investors, and expanding the list of regions where it is possible to acquire objects in freehold zones - for unlimited unconditional ownership without local intermediaries.
There are no many taxes usual for Western countries: taxes on individual income, property and land (with rare exceptions).
Modern tools for investors are being developed, for example, the Internet platform “Invest in Dubai”, designed to quickly obtain the necessary licenses and special tax regimes “with one window”.
A rental calculator from RERA is available to help users calculate potential rent increases or find out the average market rental rate in any area of the city.
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