Are you looking to grow your income and earn more money without working harder? Investing in property can be an excellent opportunity – it provides passive income and increases wealth. And right now, one of the hottest investment destinations is Dubai.
Dubai is a city that’s rapidly growing, and it’s attracting visitors from all over the world. So, if you’re looking for a lucrative yet low-risk investment opportunity that’ll generate a great return on your hard-earned cash, you need to consider investing in property in Dubai.
shutterlk / ShutterstockHere are just a few of the reasons why increasingly more people are choosing to invest their money in apartments, townhomes, and houses in the city of Dubai.
Dubai Property Is a Smart Financial Investment
Purchasing a property anywhere in the world can be a solid investment – property tends to increase in value, and you can make money in a number of ways when you own some kind of home or residence. But buying in Dubai is an especially smart financial move.
To invest in a property in Dubai, you won’t have to spend much to make money. Although Dubai is a city filled with wealthy individuals, property is actually surprisingly cheap, especially if you compare it to other cities like London, Hong Kong, Singapore, and New York City.
As of June 2022, the average selling price for property in Dubai is $277.43 USD per square foot.1 Properties in Manhattan, a borough of New York City, sell for an average of $2,132 USD per square foot2, while Singapore properties sell between approximately $1,042 and $1,490 USD per square foot3. Dubai is seven times less expensive than Manhattan – meaning you’ll spend thousands of dollars less by choosing to invest in Dubai.
Dubai Is a Great Place to Live – Especially for Families
It’s undeniable that Dubai is currently one of the most sought after cities in the world. Everyone wants to visit Dubai – and plenty of expats are moving to Dubai. This is driving up rental properties within the city, as more and more people are looking for places they can rent while living in Dubai.
With Dubai rental properties in high demand, there’s no better time to invest. And your investment will be a smart one. Dubai is more than a wealthy city; it’s also an excellent city for families. That means you’ll reap the rewards of your investment for years to come.
Dubai is filled with family-friendly neighborhoods. Communities throughout the city are carefully planned, with a focus on public parks, supermarkets, leisure spots, and plenty of activities like shopping malls and cinemas.4
Additionally, Dubai is a great place to raise children thanks to its widely-available infrastructure. Throughout Dubai, there’s good healthcare, excellent education facilities, and plenty of opportunities to pursue careers.
Dubai Is a Fantastic City for Vacation Homes
Do you want to enjoy the property you invest in throughout the year? Then you’ll love Dubai’s investment opportunities even more. You can purchase a vacation home in the city, renting it out part of the year to make money and enjoying it yourself if you’d like.
Dubai is fast becoming a city that’s popular for holiday or vacation homes. Many investors are purchasing property in destinations like Palm Jumeirah, Dubai Marina, and Downtown Dubai in the Burj Khalifa District as holiday residences.
And they’re doing so because it’s a smart investment. When you invest in a vacation home in Dubai, you’ll enjoy more than rental earnings and financial return. You’ll also get perks like the following:
- A residence visa, which is given to anyone who owns property equal to Dh1 million.
- No government property taxes.
- No rental or vacation home taxes.
Dubai Has No Income Tax
As mentioned above, many people look to purchase homes in Dubai because there are no government property taxes. Along with waving those yearly property taxes, you can expect not to be taxed on your income as well. If you are purchasing a home in Dubai, be aware that there is a four percent land transfer tax when a property changes hands.5
You can also expect to pay some taxes, whether owning or renting, to help local services. However, it’s a relatively small fee – just five percent of the home’s yearly income.
Dubai Has Regulated Real Estate
In order to protect tenants, landlords, and foreign investments, Dubai established the Real Estate Regulatory Agency (RERA) in 2007. Its core responsibilities include:
- Licensing real estate activities;
- Maintaining lease agreements, and;
- Making sure foreign and domestic buyers and sellers are aware of the regulations.
Along with creating transparency across the board in the real estate industry, the RERA has also worked with the Dubai Land Department to launch a plethora of smart applications to create the most seamless buying and selling experience possible for everyone.6
Dubai Is One of the Fastest Growing Cities
According to The National, Dubai’s population is set to double in the next couple of decades. That’s a staggering amount, considering the population hit 3.5 million people in 2022.7 Many of these people are from various other countries around the world, making it a hub for expats looking to move.
The city itself is looking for high value workers, meaning talent that yields more economic activity. Many of these workers will be looking for places to live as they enter the country, which is why investing in real estate early is a smart idea.
Dubai Is Focused on City Development
In order to properly accommodate the massive influx of people expected to reside in Dubai, the Prime Minister and Ruler of Dubai has set out the 2040 Urban Master Plan. While the city continues to attract tourists and residents alike, the future of Dubai lies in sustainable urban development.
One of the main limiting factors in Dubai’s development is limited space. However, the Master Plan takes this into consideration and focuses on improving what already exists. Some of the main highlights of the plan include:
- Developing urban areas;
- Expanding the size of public beaches, and;
- Improving main public transportation.8
Dubai Has High Rental Yields
While it might not be fun to talk about, at the end of the day, the main objective of investing in real estate is the high-income potential. Properties are in high demand in Dubai, with new initiatives and foreign investors cashing in on these high return rates.
Although many of the areas in Dubai are worth investing in, there are some that have yielded higher returns than others. For example, Jumeirah Lake Towers boasts an annual return of 9.19 percent – far higher than the market average of 5.9 percent. Following closely is Dubai Marina, with an average annual return rate of 8.75 percent.9
You Can Fly Almost Anywhere from Dubai
From the beautiful skyline to beautiful beaches, Dubai is a gorgeous vacation destination. However, even if you aren’t flying directly to Dubai, there’s a chance you may stop in if you’re flying anywhere in Europe or Southeast Asia.
According to Arabian Business, six of the 10 busiest international airlines run through Dubai. For those looking to move to Dubai, that means easy travel access to almost any destination in the world. For property owners, that means a higher likelihood of people looking to rent as transportation is always high on the list of things people consider when looking for a place.10
Dubai Is One of the Safest Cities to Visit
One of the biggest things to consider when moving to a new location is whether it is safe to live. While a neighborhood or property can look great, it might not be the best place to raise a family if crime rates are high. Luckily, Dubai has a low crime rate, making it a go-to location for expats.11 Not only is it a great city to live in, but it’s also been ranked third safest city in the world for solo female travelers.12
No matter where in Dubai you plan on putting down roots, rest assured that safety will not be an issue.
Dubai Makes Property Investor Visas Relatively Easy to Obtain
Good news for those interested in a UAE property visa – since 2019, it’s been easier than ever to obtain many types of visas including long-term residency and investor visas. So, whether you’re looking to buy property for yourself or to rent out, the ease in restrictions is sure to help.
There are no restrictions on who can buy property in Dubai. Whether you live or work there doesn’t matter, as long as you have the money to invest and the property meets certain criteria. If those boxes are checked, all you need to do is look at obtaining the proper visa.
For a quick purchase, consider the Six-Month Multiple Entry Dubai Property Visa. For longer term investments, the Three- or Five-Year Dubai Property Visas are a worthwhile investment.13
Where to Start Your Property Search
Are you ready to put your money to work for you? By investing in property in the city of Dubai, you could earn money every month through rent or other passive income opportunities.
If you’re looking for a place to begin your search for properties in Dubai, consider City Walk, Jumeirah Village Circle, or Dubai Marina. These areas of the city are in demand right now, and they’re also home to plenty of desirable properties of all kinds. You can find apartments, townhomes, and even houses at affordable prices. And they’re also cities desirable with renters – meaning you’ll be able to make a good income off the rent.
You should begin your search online. Look for available properties that you might want to invest in online. Compare their costs, and search for whether or not they’re popular with renters, expats, and residents of Dubai.
Choosing the right Dubai property is key. Everyone who do their research and choose a good, in-demand area of the city can watch their money grow with a smart investment.
