Selecting Investment Properties in Dubai: Detailed Review

5:18 pm  |  30.04.2024

Investment in real estate in Dubai has been a popular trend in recent years. According to Forbes, in 2022 alone, the number of transactions for the sale of residential, and commercial real estate and land in Dubai increased by 77%. It is currently the year 2024, and the prices are still increasing.

In this article, we will tell you how justified such demand is. And where exactly to invest to not only save your savings but also get a good profit.

Reasons for Demand

The massive success of the real estate market in the emirate is easy to explain. Rich restaurants, hotels, beaches, and luxury residential complexes are all associated with the epitome of luxury living and paradise.

But besides a beautiful oriental fairy tale, Dubai also offers more convincing arguments for ex-pats and investors:

  • The flexible taxation system in the country. There is no need to pay taxes when purchasing, gifting, and receiving income from housing, working for local companies, and running a business. Thanks to this, many entrepreneurs, their families, and employees come to the country.
  • Simple purchase and registration procedures. You can conclude deals remotely online, negotiate, and sign contracts and permits.
  • Political and economic stability. The UAE cooperates with many countries. The unstable situation on the world stage did not affect business relations.

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In recent years, the UAE has been focusing on the active development of international trade, tourism, real estate, and IT technologies, which creates favorable conditions for economic development. In addition, there has been stable growth in the exchange rate of the national currency for more than 20 years, despite periods of crisis in the world.

  • Highly liquid real estate. According to Forbes, in Dubai, you can get from 20 to 160% profit from resale or rental of an asset, depending on the project and the moment of exit from it.
  • No need to explain the origin of income. This makes Dubai an ideal investment destination and also attracts a large number of high-net-worth individuals from all over the world to the Emirates. According to Henley & Partners, there are now 13 dollar billionaires and almost 70 thousand millionaires living in the city.
  • Bonuses and attractive offers. There are a large number of new projects emerging in Dubai that can satisfy any request. There are also many different promotions from developers, such as interest-free installments, discounts on registration fees, and receiving a business license along with the keys to the apartments.

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  • Obtaining a residence permit. It is possible to obtain a resident visa, thanks to which you are allowed to stay in the UAE without restrictions, open a bank account, officially find employment, register a business, and obtain other visas.

Everything mentioned above stimulates the active growth of interest in Dubai real estate from foreign investors.

Selecting a Liquid Real Estate Property

There is a huge amount of real estate under construction and ready-made in Dubai. How to understand which of them is profitable and how much profit it can bring in the foreseeable future? And can it fail to meet the investor’s expectations? It is worth considering that not all objects are equally liquid.

The financial attractiveness of real estate is influenced by a large number of parameters:

  • The reputation and reliability of the developer can be assessed by the number of successfully completed projects, experience in the construction industry, information about partners, and awards. You can check the company on the official portal of DLD – Dubai Land Department. And also look through the company’s website and social networks, and study reviews.
  • Project location, infrastructure development, and transport accessibility. The location near popular attractions, for example, next to the Burj Khalifa skyscraper or Dubai Marina beach, has a good effect on the attractiveness of the property and increases its value in the future.
  • Urban sprawl. Not everyone knows how important it is to pay attention to which direction Dubai will expand. Real estate that is located on the periphery today may become the de facto center of the city in the future. Therefore, it is worth looking 10 years ahead to take into account the development of the emirate and the shift of its center when choosing an asset.
  • The moment of entry into the project. At different stages, the value of real estate differs, sometimes quite significantly. For example, at the start of sales, prices are lower than after commissioning.
  • Possibility of installments or purchase with a mortgage. Construction companies often provide comfortable payment terms.

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Despite the difficult situation in the world, we can safely say that Dubai is a safe and stable place to purchase real estate and make a permanent profit. However, before completing a transaction, it is worth carefully studying the options presented on the market and assessing their liquidity.

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