Why real estate is a good investment in Dubai?
Demand for property in Dubai is constantly growing, while apartments are one of the most popular types of housing for investment. The average price of an apartment in the UAE in 2022 is $5,920 per square meter. You can buy an apartment with a total area of 120 m2 for $710,160. When you rent it out, you will receive a profit of $3,070 per month. Thus, the income from such housing is 5.19% per annum. In more prestigious areas, such as Dubai Marina and Downtown Dubai, the profitability of apartments for sale in Dubai can reach almost 8%. This suggests that studio for sale in Dubai as an investment project is profitable.
Dubai is the largest emirate in the UAE. It won the love of many not only for its mild climate and clean beaches. Being at the same time the center of trade and entertainment, Dubai is one of the ten safest cities in the world.
How to buy a house in Dubai?
A local residential square meter sells for at least two thousand US dollars. In the Silicon Oasis quarter, for example, m2 costs an average of 2150.
You can become the owner of a studio apartment for about 70,000 – 100,000 – this is the minimum level of local prices, although, in many quarters that are in demand among citizens of other countries, the cost is several times higher. In Palm Jumeirah, for example, a square meter costs about $5,000, while in Dubai Marina it costs $4,500.
Dubai for investors
It is worth noting that in recent years, it is in Dubai that there has been an exceptional increase in demand for all categories of real estate. The main reason for the high demand for housing in Dubai is the strong economy of the UAE. This is achieved through the diversification of imports and the government’s strategy aimed at strengthening food security in the country.
An important criterion for a strong real estate market in Dubai is the fact that the majority of purchases in the upper price segment are made without raising mortgage funds. This is large because a large number of real estate in the emirate are bought by foreign investors, among whom there are also many citizens of different countries.
Forecasts on housing prices in Dubai
In the past two years, there has been a certain shortage in the residential real estate market in Dubai, which contributes to rising prices per square meter. According to analysts, in 2022 the cost of mid-level housing will increase by 5-7 percent, while luxury real estate will rise in price by 12-15 percent.
According to statistics, 18 percent of real estate purchase and sale transactions in Dubai were made using mortgage funds. In 2022, this figure was only four percent. For comparison, in 2007 more than half of the transactions were made using borrowed funds.
What are the benefits of investing in Dubai real estate?
In addition to protecting capital from inflation, investing in real estate in Dubai has several advantages, including:
- the opportunity to receive a stable income of 4-9 percent per annum from renting out housing;
- tax policy that is comfortable for investors, allowing you to get a good return on investment;
- high liquidity of real estate in Dubai, thanks to which an investor can sell his assets in a fairly short time;
- the opportunity to obtain a resident visa with a purchase in the amount of 750 thousand UAE dirhams (204,187 dollars, 1,375,567 yuan).
Buying property for rent
If you are planning to buy a property to rent out, it is important to pay attention to the location of the property, the quality of the residential complex, and the infrastructure of the area.
Profitable areas for landlords are located in the coastal part of Dubai and on the famous islands of Palm Jumeirah. There are traditionally many tourists and a high demand for short-term rentals.
Also popular are the central districts of the city, such as Downtown Dubai and Business Bay, where the infrastructure is well developed and there are large business and shopping complexes.
Where can I find a home to buy?
For a profitable investment, it is important to choose an object with a favorable price-quality ratio. The site Emirates.Estate will help you with this. Here are collected the most relevant offers from developers, and real estate agencies in Dubai, so that you can compare prices in rubles, euros, dollars, and dirhams and choose the best option for buying.