People think that real estate is the most important part of the UAE’s economy. Dubai has become the Emirate of Dubai’s main business district because of its amazing buildings and tall skyscrapers. Work and business trips to Dubai have made more people want to buy real estate there.
Dubai’s property prices are rising along with demand, which is bringing in real estate investors from around the world. In addition to good prices and high demand, many little-known things about the Dubai real estate market make it a good place to invest and makes Dubai an ideal choice for a wealthy lifestyle.
Facts About Dubai Investment Real Estate
Here are the top interesting facts about Dubai investment real estate:
Low Acquisition Cost
One of the most important parts of the Dubai investment real estate business is how cost-effective it is. Neither buyers nor investors are interested in a higher purchase price. In comparison to other world capitals, buying a home in Dubai is less expensive. Because of this, it gets investors not just from other UAE emirates but from all over the world.
In London, the price per square foot is $3,208, while in Dubai it is about $468. It is a big plus that will make a big difference for investors in the Dubai real estate market.
Better Return on investment (ROI)
Cost-effectiveness is one of the most important parts of the real estate business. Neither buyers nor investors want the price to be higher. Buying a home in Dubai is less expensive than in other world capitals. It brings in investors from all over the world, not just from other UAE emirates.
In London, one square foot costs $3,208, while in Dubai, it costs about $450. It is a big plus that will make a big difference for people who want to buy property in Dubai.
Higher Rental Return
The rental yields are also a big part of figuring out how much a real estate business is worth. About 85% of the people living in Dubai are expats. This has helped the rental market and made it easier for everyone to find a place to live.
Some of the best places to rent in Dubai give returns of up to 10%, while the best places to rent in London and Singapore only give returns of 3.21 and 2.83 percent, respectively. The average rental yield in Dubai is more than 5.82%. Therefore, we can say that the best fact about Dubai real estate market is it’s higher rental yield, which makes Dubai one of the best places for real estate investment.
Growth In Population
Population growth increases demand, especially if the growth is steady and most of the new people are not from the area. Reports say that between 2008 and 2018, the number of people living in Dubai grew by 86%.
Dubai has grown into a city with expatriates from over 200 different places around the globe. Dubai’s property market has become one of the fastest-growing business hub in the world because of how fast it’s population increases.
A Ticket To Resident Visa
Having a property in Dubai can also be your ticket for a chance to have a Golden Visa valid for 10 years. The UAE has a rich heritage and a long history, it has consistently welcomed millions of people who come from a wide variety of nationalities and cultures.
The visa of residency allows the expats, among other things to reserve a car, obtain a driver’s license, and open a bank account in Dubai. This visa provides numerous benefits to applicants and their families, as well as opportunities for personal growth.
Freehold and Leasehold Areas
The Dubai government has established two categories for property purchases;
Freehold areas: Both Emiratis and non-Emiratis can purchase freehold property.
Leasehold real estate: Non-Emiratis may lease leasehold property for up to 99 years, but cannot purchase it. However, locals (Emiratis) can purchase property in leasehold areas.
Dubai is looking forward to build the first climate-controlled city in the world. The plan is to build a city that is 48 million square feet and will have:
- Apartment buildings.
- There are about 100 hotels.
- The world’s biggest indoor amusement park.
- A place to have fun that can hold up to 15,000 people.
No Property Tax
The only emirate in which there is no property tax and where it is possible to purchase a property that has not been taxed at a price that is legal in Dubai. There is no tax on the property that has been imposed by the government of Dubai. The real estate market in Dubai has been helped by the fact that some properties are exempt from taxation.
Dubai investment real estate market is propelling the city’s economic growth and stability. The city’s real estate market is growing as a result of investment opportunities and technological advancements. Dubai is on its way to global real estate dominance thanks to its diverse offerings.