Investing in Real Estate in Dubai
As Dubai continues to gain quite the popularity, more and more people are moving to the global business hub. And with that comes an increased need for real estate. In fact, the real estate in Dubai is booming with an increase of around 10% in Q2 compared to Q1 of this year.
This increase in the population has also paved the way for people to consider investing in real estate now more than ever before. Because what better way to invest your money than in Dubai’s thriving real estate industry?
Investing, in general, is not an easy process. But to help understand where and how to start, understanding the market and benefits is pivotal to the success of your investment.
Benefits of Investing in Real Estate in Dubai
Perhaps one of the most attractive benefits of investing in Dubai’s rest estate is the Dubai Investor Visa, which grants foreigners a visa if they open their own business or invest. This type of visa allows investors to apply for an Emirates ID card, sponsor their families, and have access to many other services. In addition, the UAE government approved law amendments in 2021 to allow investors who own properties in the UAE to apply for UAE citizenship.
When it comes to real estate, the duration of the visa varies depending on the amount of investment. For instance, a three-year visa is given for investors who invest at least 1M AED given that the mortgage does not exceed 50%. However, it is important to note that the investment must be in a single property with a maximum of 50% mortgage.
This investor visa might be appealing for many because it means that foreign nationals can now own and invest in properties without the need for a national sponsor.
Another great benefit that comes with investing in real estate in Dubai is the fact that investors gain their total profit as they do not have to pay property taxes. Not only that, but studies have also shown that investing in Dubai’s real estate yields higher returns than investing in other mega-cities like London and New York.
In addition to these benefits, Dubai is a magnet for expats and foreign businesses, which means that there will always be people to sell or rent properties too. With Dubai also being a futuristic and innovative hub, investors can rely on the continuous development and growth of the city.
Best Areas To Invest In
What makes Dubai’s real estate even more tempting is the fact that it caters to different social and economic levels. Given the variety of expats living and visiting, Dubai offers a range of investments in both luxurious and affordable areas.
Some of the most popular areas are Dubai Marina, Downtown Dubai, Dubai Hills Estate, and Palm Jumeirah. These areas are among the most luxurious and sought out areas in Dubai.
Palm Jumeirah
Considered to be the most expensive apartments to own, Palm Jumeirah apartments and villas are the only private residents that give private beach access. The palm shaped island offers its residents and visitors a private and luxurious retreat that has access to almost everything you need!
However, some of the things that have to be considered before investing in Palm Jumeirah is the high-budget lifestyle that comes with living there. In addition, the lack of access to the metro can also be a downside for many people.
2.Emaar Dubai Hills Estate
Unlike the noisy and rushed scenery that comes with living in a central area, Dubai Hills Estate offers a calm and peaceful aura for its residents. The nature of its amenities and parks makes it a pet friendly and active space for families.
However, all great things have their own downsides. Similar to other areas in Dubai, the lack of public transport might be an issue for some
3. Dubai Marina
From its strategic location to the high ROI, Dubai Marina seems to be one of the top choices for investors who are looking for luxurious real estate investments. It is reported that rental returns can reach up to 7% annually, making it one of the highest returning real estates worldwide. Not only that but Dubai Marina is also close to the beach and away from key public transports.
While Dubai Marina is considered to be a top spot to live and invest in, it does come with its shares of disadvantages. Due to its central location and surrounding activities, it can be noisy and hectic with traffic becoming heavy in peak hours. In addition, there are no schools in the area which can be a great disadvantage for families.
4. Downtown Dubai
Even though Downtown Dubai is not as close to the beach as Dubai Marina is, it is still among the most popular areas in Dubai. With its central location, pedestrian-friendly walkaways, and attractive apartment complexes and views, Downtown Dubai is quite appealing.
With Burj Khalifa being located there, this area screams luxury on all levels. Not only that, but it also offers spots for both nightlife and family friendly outings and schools. Nevertheless, this can come with its own shares of heavy traffic and noises.
