The real estate market has been a straight route to success for any country, yet it has changed its path since the Covid-19 outbreak. And so, investors are looking for new ways to continue their business regime within the geographical regions.

How does the Dubai Property Market appear more Robust than other Global Markets?

According to financial research, in 2021, there was a 74% increase in sales transactions and an increase of 110% in overall value. In comparison to 2019, there was a significant increase of 55%. Despite the pandemic, the Dubai property market showed a productive rise in 2021. In addition, the emirate continues to encourage investors and buyers to its evergreen property market from all over the globe. 

Dubai Property Market appear

And for this reason, it tends to outperform all the housing markets across the USA and the EU. We’ve listed a few reasons that made Dubai stand against its competitors.  

  • The Tax-free Strategy

Unlike other advanced metropolises, the Dubai property market is a tax-free haven, and that’s precisely why locals and foreigners invest here wholeheartedly. Besides, the city isn’t influenced by mortgages since it’s always been more expensive than in the USA and EU. Yet, a mortgage in the EU is like a guaranteed strategy for investors to minimise the cost of taxation. Meanwhile, Dubai remains a tax-free haven for rental return, inheritance, and capital gain.

  • High-profile Security

Whether online or physical, security is one of the perks of living in Dubai, ultimately making it a top choice to invest in. According to the Gallup Law and Order Index 2020, the UAE ranked 4th on the list of safest countries compared to France, Japan, Germany, and the United Kingdom. Since there’s a significant boost in cyber fraud these days, the government of Dubai skillfully combats such attacks and makes it a secure platform for investors to work in. 

  • Fewer Property Rates per Square Metre

As expected, Dubai’s property prices per sq. metre are lower than other international cities. According to a survey, the cost per sq. metre for a 120 sq. metre flat in Dubai is $5000. So, it’s comparatively lower than Hong Kong, New York, Geneva, Tokyo, Paris, and Berlin. In addition, the cost of purchasing a house in Dubai is much cheaper than in other foreign competitors. This adds to the attractiveness of the Dubai property market for foreign investors

Having said that, the property price majorly depends on the area. For example, properties in Palm Jumeirah tend to be expensive. However, you can find cheaper options across the emirate. 

  • The Provision of a 10-years Golden Visa

Besides the taxation and reasonable property rates, the economic growth in Dubai is phenomenal in multiple ways. For the past few years, the government has imposed several initiatives to attract foreign investment into the city. One includes the golden opportunity of claiming the 10-year visa with the prime purpose of retaining talented individuals within the premises for a long time. In addition, reforms occupying the ownership of companies in emirates also helped boost economic growth. 

  • The Expo 2020 Influence

Surprisingly, Expo 2020 has stimulated real growth in Dubai’s property market. It positively influenced the economy in Dubai, particularly with the short-term rentals. Short-term rentals get leased for usually days to weeks. Yet, they tend to add to the state’s finances in a short period. During the Expo 2020 last year, many tourists and business persons booked serviced flats instead of opting for hotels and resorts. 

The site of Expo 2020 is being converted into Dubai Expo City. It’s dubbed the city of the future that focuses on sustainability and a quality lifestyle. Opening its doors in October 2022, it is expected to boost the Dubai property market and the UAE economy on the whole.

Final Verdict:

As mentioned, the government continues to fight inflation, and so far, we haven’t observed any major price softening in the USA or EU. In contrast, with the remarkable success of Dubai in housing markets in 2021, the city looks busy settling its momentum with the help of well-known developers and investors.

Despite the growing inflation, the interest rates keep increasing, yet the Dubai property market seems like a saviour to investors. After all, with such health uncertainty prevailing on us, not many states offer safety, excellent infrastructure, tax-free properties, substantial capital gains, and a high-tech lifestyle.

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