Dubai, “the city of gold”, has transformed itself tremendously over the past couple of decades. Not only it has presented itself as a world-renowned tourist destination captivating everyone through its striking beauty and remarkable infrastructure, but the emirate has also turned into a gold mine for entrepreneurs and investors.
Out of all the sectors contributing to its popularity, the Dubai property market deserves a special mention. It has recovered strongly from the COVID-19 pandemic as it reported a 100 per cent increase in the investment value as compared to 2020. The upwards trend is still continuing in 2022. As a matter of fact, property prices and rent are increasing at the fastest rate since 2015, with January reporting a 33.4 per cent increase in real estate prices.
All these facts and figures make it clear that the Dubai property market is ripe for investment. And it’s calling out investors from all over the world to create wealth through investment. Still not convinced? Take a look at the following standout features of investing in the Dubai property market:
Abundant Choices
When it comes to investing in the Dubai property market, investors are surely spoilt for choices. There is a wealth of apartments, villas, townhouses, and penthouses. Furthermore, investing in a commercial property is also an option. You can choose from plots, off-plan properties, and ready properties in both these categories. Off-plan properties, in particular, have been garnering a lot of interest from investors as they recorded a 300 per cent jump in January 2022.
In the ready property segment, villas have remained the top choice among buyers and investors as some areas recorded double-digit growth in terms of sales volume and transactions. Apartments, too, are catching up now as they are inching towards stabilisation. Their comparatively lower rates are making them more favourable for buyers and investors seeking low-cost opportunities with high returns.
An Easy Process
While there are certain challenges and a lot of factors to consider when it comes to selecting properties for sale in Dubai, be it residential or commercial, the entire process can still be termed as relatively easy. However, if you are opting for the financing route, you need to meet the eligibility criteria. The biggest challenge here is having a decent credit score.
Furthermore, you must have extensive market knowledge prior to making the investment. Also, you must have an idea about the leasehold and freehold areas in Dubai. For the uninitiated, freehold areas are those communities where foreigners can buy property in Dubai and fully own it. On the other hand, leasehold areas only allow them to lease the property for a period of up to 99 years.
If you want to buy property in Dubai in instalments, you can find all the information here.
Additional Perks
When you buy property in Dubai, you secure an opportunity to live an upscale lifestyle where all the modern amenities and facilities are available. For investors, it comes with an additional perk of residency as Dubai now offers investor visas. By obtaining this visa, they can visit, live, and leave the country at any time, provided their visa hasn’t expired. Furthermore, this visa holder can open a bank account in Dubai, sign up for packages, obtain a driving license and UAE ID while enjoying several other perks. Besides that, they can also sponsor their family to Dubai.
As an investor, you can choose from the following visa types:
- 6-month multi-entry visa
- 3-year residence visa
- 5-year residence visa
- 10-year residence visa
The requirement and eligibility criteria for each visa type varies. So, make sure that you’re equipped with the right information before you make a pick.
Anticipated Growth in the Dubai Property Market
As stated above, the Dubai property market is cruising towards recovery after COVID-19 slowed down the business. Despite the fact that the property prices haven’t touched the 2014 peak levels, they still offer high returns to investors.
This, however, majorly depends on the area and property type. For example, apartments in Downtown Dubai offer an average gross investment yield of 5.64 per cent. For Dubai Marina apartments, it is recorded at 6.14 per cent. By investing in apartments in JBR, you will be able to earn around 4.95 per cent. Similarly, villas in Jumeirah Village Circle will help you earn 6.73 per cent.
According to ZP Insights, the Dubai property market will maintain its upwards turn in the time to come. Therefore, it’s safe for investors to put their money in Dubai real estate. However, the decision to invest must be made after thorough deliberation and extensive market research.
Opportunities through Fractional Property Ownership Title Deeds
Do you know that you can now invest in the Dubai property market with only AED 5,000? Yes, that’s right!
With Fractional Property Ownership Title Deeds now available in Dubai, foraying into the market has become rather convenient. Up to four people can co-own a property, thanks to this initiative. It was launched to diversify and expand the market. With more investors entering the property market due to this initiative, the overall economy of the emirate will benefit.
However, if you are opting for fractional property ownership, make sure to only choose a listing that’s approved by RERA. Also, go through the entire contract in detail to avoid landing yourself in a troublesome situation.
Investing in the Dubai Real Estate – A Venture with Abundant Benefits
In all, you can create a lot of wealth through investing in the Dubai property market, provided you’re well-researched and have impeccable decision-making skills. It can prove to be a highly profitable venture as the wealth you will earn will go into your pocket since there’s no tax on real estate in Dubai.
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