Dubai has become a prime focus of international investors due to many reasons, and it can be truly called a property heaven. Amidst the city’s glamour look with all its ambitious architectural projects, ultimate shopping experience, immense entertainment and top-notch hospitality standards, Dubai has more to offer. So why to buy a property in Dubai?
One of the most rapidly growing business hub in the world
The government of Dubai is meticulously enhancing administrative policies and introducing economic reforms to attract capitals and businesses from across the globe. The UAE leads as the best country in the MENA region to do business .
Dubai imposes no annual property taxes, no property purchase taxes nor capital gain taxes. However, stay vigilant about a housing (service) fee, and a VAT (value-added-tax) on commercial properties:
- The housing fee is collected by the Dubai Electricity and Water Authority (DEWA) on behalf of the Dubai Municipality in exchange for its services. It’s charged to an account on the basis of 5% of the annual rent amount (for tenants), or 0.5% of the property purchase price (for expatriate owners residing in their properties). Leases for commercial properties are taxed at a flat rate of 10%.
- The VAT is taxed on any commercial property, whether leased out or sold, such as offices, retail and even car parking, at a flat rate of 5%.
Affordable prime residential property market
Dubai is the 3rd most affordable city in the world for buying a prime residential estate , and it makes another reason of why to buy a property in Dubai. An average price per sqft of a prime residential property in Dubai is USD 560. This compares to USD 270 per sqft in Kuala Lumpur and USD 260 per sqft in Cape Town.
Among best property yields in the world
Dubai properties often generate ROI (return on investment) above 7% on average. Many factors affect the outcome, such as a property location, types, features etc. Also your contractual conditions with a developer may play a role, some Dubai’s projects guarantee ROI 8-10%. As previously mentioned, the UAE is a property tax-free country, therefore gross rental yields appear very attractive to investors. For instance, major destinations like New York, London or Paris offer a gross rental ROI in the range of 2,7 – 3%, where in Dubai, – it’s above 5% .
Offers various incentives to investors
Dubai’s government is always in step with the times and offer following stimuli:
- 3-year residence visa when buying a property worth AED 1 million and above
- 5-year retiree visa, your property investment should worth AED 2 million (other T&C apply)
- 100% property ownership in designated freehold areas
WHY TO BUY A PROPERTY IN DUBAI?
Real Estate Experts
The second wealthiest emirate in the UAE
Global trade, tourism and real estate are strategic industries of the Dubai’s economy. In the recent years, the emirate has attempted to further diversify economic activities, and it has become a sound hub for the IT and finance industries too.
Are you still looking for a reassurance of why to buy a property in Dubai? We’ve got you.
One of the fastest-growing city in the world
The city population nearly tripled in the last 20 years, and it continues to demonstrate an exponential growth. Each year Dubai, that doesn’t levy any kind of taxes on individual earnings, attracts job seekers from all over the world. It remains to be a hotspot for high-paid foreign professionals. As per the latest statistical data, the GDR per capita in UAE is recorded at USD 41420,50 in 2019 .
The 4th most popular destination globally
After Bangkok, Paris and London as per the MasterCard Index report . In 2019 Dubai welcomed a record braking 16.73 million overnight visitors.
The world’s safest city
Undoubtedly, low crime is another top reason of why to buy a property in Dubai. The emirate scored a crime rate index of 16.98 and a safety index of 83.02 in 2020, taking the 7th place after Zurich, Switzerland and the UAE’s capital Abu Dhabi .
A host of the Expo 2020
The most awaited event is about to welcome more than 25 million visitors from 192 countries, and it’s expected to give a nice boost to the Dubai’s economy (rescheduled to October 1, 2021 due to the COVID-19 pandemic).
From Our Blog
Resources & Links:
-  Waheed Abbas “UAE remains best Middle East country for doing business” Al Khaleej Times, October 24, 2019
-  Swapnil Pillai “Dubai, 3rd most affordable major city for prime residential property” Savills News, August, 5, 2019
-  Sophie Chick, Sean Hyett “Savills Prime Index: World Cities” Savills News, July, 30, 2020
-  Gavin Gibbon “Dubai property continues to offer among best yields in world, says Savills” Arabian Business, February, 19, 2020
-  United Arab Emirates GDP per capita report The Trading Economics
-  MasterCard’s Global Destination Cities Index 2019
-  Reema Rahman “Dubai named seventh safest city in the world” Time Out Dubai, January 21, 2020