There is no question that Dubai is a hotspot for real estate investment. While the market slowed down during the height of the pandemic, Dubai did considerably well. And it did not stop there.Dubai bounced back quickly. As other cities scrambled to mitigate the health and economic impacts of COVID-19, it swiftly worked on vaccination and other rapid response protocols. All while it introduced new legislation: five-year retirement visas for over-55s, one-year remote working visas, and a wider net for eligibility to the 10-year golden residency visa. All these combined boosted investors’ confidence and, in turn, regained their trust almost instantaneously.Aside from its pandemic success story, it is worth looking into why many investors are sinking their money in Dubai. Here are four reasons.
Global center
Ranked the fifth-best city in the world and one of the safest cities to live in, Dubai needs no introduction. It is home to the biggest, the tallest, the grandest.It does not come as a shock that Dubai is the biggest financial, trade and leisure hub in the region. There is no shortage of options when it comes to attractions and places of interest to visit. Not to mention the stable economy, forward-looking architecture, and overall environment conducive to a cosmopolitan lifestyle.As a result, Dubai is a preferred investment landscape as it continues to be a rapidly developing city for all the right reasons.
High yields
Where you can count yourself lucky to get a 5% annual ROI in other markers, the average ROI in Dubai hovers between 7 to 8% and can go up to double digits in some cases. On top of this, the purchase cost of properties is lower compared to property investment havens the world over.Quarter-on-quarter numbers continue to break records, especially in prime residential communities. In the first half of 2021, transactions hit a 10-year high. Investors can expect good financial returns in Dubai’s real estate sector.
Tax incentives
Dubai is a preferred choice not only because it is open to foreign investors but due to its low tax structure. Investors need not pay taxes on property, income, or capital gains.Not to be confused with a fully tax-free nation, property owners need to pay 5% of the average rental value in their area or 4% in the case of property transfers. Still, a small price to pay compared to other countries.This tax-friendly structure makes Dubai all the more a viable option for investors looking for long-term, cost-effective solutions to diversify their portfolios.
Residency opportunity
Real estate investment is one of the simplest ways to get a residency permit in the UAE. In its bid to raise foreign direct investments, Dubai recently reduced its minimum investment requirement to apply for a three-year visa at AED 750,000.This applies to single, non-off-plan residential properties. Five or 10-year visas are also available, depending on the size of investments. A wise move to attract high net worth individuals who wish to relocate to Dubai, in addition to its efforts to reel in professionals, students, remote workers, and even retirees.It is worth noting that on top of its COVID-19 response, the City of Gold has long been a solid investment choice. As the emirate continues to advance each year and diversify its offerings as a leading investment destination, demand for new homes will continue to increase, which investors stand to benefit from.
