UAE real estate market shows encouraging growth
Investing in real estate is one of the ways to secure your future. The UAE housing market can be a good start for those who will invest for the first time, as well as for those who already have experience in this area. According to statistics, more than half (52%) of investors from Russia choose the foreign real estate market for two main reasons: a profitable investment with minimal effort and a way to have a stable passive income.
Among the TOP-25 real estate markets in the UAE, this is a place where you can buy 5 times more real estate for $ 1 million than, for example, in London.
In addition, the UAE real estate market is showing encouraging growth:
- In July alone this year, the growth in the value of the transaction averaged 10.14%. It is a record growth in 12 years.
- In the first six months of 2021, the same number of properties was sold and for the same amount as during the whole 2020. This is the best annual performance in 8 years.
- For half a year in 2021, 54% more new investors have come to the market than in the whole 2020.
Investing in residential real estate with rapid time to value
The Emirates occupied the 25th line in the ranking of the world countries in global competitiveness in 2019, and the 9th in 2020. The UAE authorities are constantly working to improve living conditions: reforms are being carried out, new laws are being adopted.
The real estate market in Dubai is rich and abundant – here you can find housing of different levels: from budget apartments to luxury villas. However, the attention of experienced investors is often attracted by small housing, for example, one-room apartments and studios. The secret of the high demand for such real estate is simple - in sales and rent, one-room apartments and studios are, according to statistics, the most popular type of real estate. In addition, this type of housing pays off the fastest and begins to generate net income.
The sphere of tourism is fundamental when it comes to investment: rental income will depend on the tourist flow. In the emirates, not only classic tourism, but also business tourism is developed. Of course, the pandemic and the widespread lockdown have made their own adjustments. Over the past year, just over 5 million tourists have visited the city, according to the Dubai Tourism and Commercial Marketing Department. Nevertheless, the Emirates, like the rest of the world, is adapting to new realities and smoothly restoring the “pre-COVID” lifestyle: in the first half of 2021, almost 3 million tourists have already been received. An increase in tourist traffic is expected ahead, as the opening of the Expo-2020 exhibition is scheduled for autumn.
Here are some more benefits of owning a property in Dubai:
- Comfortable geographic location. A third of the world's population lives in about 4-5 hours of flight, and you can get to Dubai, for example, in 5 hours from the capital of Russia. In addition, the airport is located within the city in Dubai, which means that it will take no more than half an hour to get to the city.
- Ultra-modern metropolis. An incredible city that appeared in the desert has been created for a comfortable and business life: the most modern metro without drivers, amazing buildings and thoughtfulness of every detail work for the comfort of residents. On the one hand, a warm climate, an abundance of entertainment, and the sea coast set you up for rest and relaxation. On the other hand, business is in full swing here: Dubai is located at the intersection of trade routes by air and water between Europe, Asia and Africa. There are offices of world famous companies in free economic zones.
- Safety. Due to strict order and compliance with security measures, Dubai has repeatedly been included in the ratings of the safest countries in the world. This is partly due to the harsh immigration policy. According to the Legatum Institute, the 18th line of the personal safety rating belongs to the UAE.
- No taxes. The United Arab Emirates is a country where a private investor practically does not need to pay duties. You will not find any federal or regional taxes on income, wealth, real estate and land in the Emirates.
Residential property prices depend on the area where the property is located and its relevance. Let us consider real estate with a quick payback – these are one-room apartments and studios and several popular areas:
- Business Bay. The area is located near the central part of the city, in close proximity to the Dubai Canal. The name of the area speaks for itself: during the construction, the commercial purpose of the area was conceived and today the area is compared to Manhattan in New York. A 96 square meter studio apartment with two bedrooms and a distance of 6,000 meters from the sea can be purchased for AED 999,888. For an apartment with an area of more modest, for example, 47 square meters, with one bedroom and one bathroom, you will need to pay about 650,000 dirhams. Both options involve turnkey finishing, panoramic views, well-developed internal infrastructure (steam bath, dry cleaning, playground, supermarkets, swimming pool, video surveillance, concierge).
- Dubai Creek Harbor. The area is rich in entertainment, leisure and dining options, as well as clusters of Riviera-style residential complexes. The area may resemble Venice, famous for its waterways. One bedroom studio with an area of 63 square meters with two baths will cost approximately 900,000 dirhams here. A similar type of studio, but with one bathroom, will cost a little less - 850,000 dirhams. These studios offer panoramic views and are available for turnkey finishing. The infrastructure boasts a fitness room, covered parking, and a restaurant. There is a security post.
- Mohammed Bin Rashid City. The area is named after Sheikh Mohammed bin Rashid Al Maktoum, the current ruler of Dubai. According to the project, 26,400 residential buildings are to appear here. It is also planned to build a monorail road, which will provide communication between the community and two international airports. You can buy an apartment with an area of 39 square meters with one bathroom from 450,000 dirhams here. Studio with an area of 75 square meters and with two bedrooms will cost 790,000 dirhams. Covered parking, swimming pool, video surveillance are provided.
- Downtown Dubai. This is one of the most interesting and prestigious areas of Dubai. The place where the most famous attractions are concentrated: Burj Khalifa, The view at the Palm, Deep Dive Dubai and others. One-room apartment with one bedroom and an area of 74 square meters, for example, in the Burj Royal residential complex can be purchased for 980,000 dirhams. Internal infrastructure includes a restaurant, a laundry, a spa center, a fitness room. There is a barbecue area, a swimming pool among surrounding infrastructure.
5-10% per annum is an average rental income when renting out real estate. As it has been mentioned above, a lot depends on object locatio, as well as real estate type and category, its maintenance cost.
Buy a studio or apartment for investment: benefit
Affordable real estate for “quick investments”, that is, for investments with rapid time to value, is just about one-room apartments and studios. By investing in this type of real estate, you can return your funds in a fairly short time, and the acquired real estate will generate income.
It is worth noting the important role of the currency in such transactions. The dirham has shown an increase in value over the past 14 years. In 2007, it cost 6.6 rubles, today the cost of a dirham is 20.05 rubles. That is, if the purchased property becomes cheaper in price, in any case you will be able to earn money due to this indicator.
Start your search for an apartment for “quick investment” now!
The company's website presents a wide range of affordable housing: apartments and studios in different parts of Dubai and with different infrastructure. Our experts are ready to select options so that you can choose the most suitable for yourself in terms of price, convenience and location.