The real estate market in this small emirate has become a focal point for global investors. According to the Dubai Land Department, there were over 61,000 transactions from January to June 2023, a significant 43% increase compared to the same period last year.
Dubai’s real estate offerings span economy, business, and premium classes, catering to diverse investor preferences and yielding profits accordingly.
The cost of housing varies based on factors like location, project type, and developer. For instance, in International City, a studio can be purchased for $100,000 with a yield of 5–7% per annum.
Unlike some countries, properties in the UAE are sold with complete renovations. Basic renovations may cost around $20,000, while more extensive ones can range from $100,000 to $150,000, depending on the client’s preferences. Luxury, premium, or business-class apartments typically feature high-quality finishes.
Whether or not to embark on renovations significantly hinges on the specific project. Townhouses and villas stand out as prime candidates for renovation when the buyer aims to maximize their profit. Penthouses, along with two- and three-room projects situated on the first lines of the coast, can yield returns ranging from 30% to an impressive 150% after self-renovation.
Unfinished projects are rare in Dubai, mainly limited to villas. Even then, they may only lack finishing touches, making it an exception rather than the norm.
The UAE’s mortgage regulations and installment plans undergo frequent changes, typically every two months, influenced by global inflation and interest rate fluctuations. Until February of this year, even non-residents living in the UAE could secure a mortgage. However, recent legal changes now necessitate residency, a bank account, and a minimum salary of 10,000 dirhams. Notably, some construction companies have ceased offering installment plans, requiring buyers to make payments over the subsequent two to three years after receiving the keys. Nevertheless, during the foundation pit stage, most developers still provide installment options. Keeping abreast of these evolving regulations is crucial for those navigating Dubai’s real estate landscape.