Without a doubt, Dubai is a popular place to invest in real estate. Dubai fared quite well even if the market slowed down at the pandemic's peak. Dubai made a strong comeback. It moved quickly to develop immunization and other rapid reaction measures as other cities frantically tried to lessen the health and financial effects of COVID-19. While doing so, additional legislation was also submitted, including a broader definition of who qualifies for the 10-year "golden residence" visa and five-year retirement visas for anyone over 55. In consequence, investors' trust was almost immediately restored as a result of all these factors working together to increase confidence and attract investment in Dubai.
It is worthwhile to investigate the reasons why so many investors are dumping their money in Dubai, other than its global success story. Here’s a few :
Centre of the globe
No introduction is necessary for Dubai, which is ranked as the fifth-best city in the world and one of the safest cities to live in. The largest, tallest, and most opulent things are found there.
Dubai's position as the largest regional centre for commerce, finance, and leisure should not come as a surprise. There is no lack of choices when it comes to locations to visit and attractions to discover. Not to mention the strong economy, cutting-edge construction, and generally cosmopolitan setting.
Due to the city's continued rapid growth for all the right factors, Dubai is a favored investment landscape. Beyond this, there are several options developing as to how one can invest in Dubai.
Greater return on investment
The typical ROI in Dubai is from 7% to 8% and may reach double digits in some instances, but you can consider yourself lucky to earn a 5% yearly ROI in other cities. Additionally, compared to other havens for real estate investment throughout the globe, property buying costs are cheaper here.
Records are still being broken quarter over quarter, particularly in upscale residential areas. Transactions reached a 10-year high in the first half of 2021. In Dubai's real estate market, investors may anticipate strong financial returns.
Tax Haven
Taxes take away a great deal on anybody’s income. Dubai is a popular option because of its low tax rates as well as the fact that it is open to global investors. Taxes on capital gains, income, or property are not required of investors.
Property owners are required to pay 5% of the region's average rental value or 4% in the case of property transfers, which should not be mistaken with a country with no taxes at all. Still, it's a negligible cost compared to what other nations spend.
Dubai is an attractive alternative for investors searching for long-term, affordable ways to diversify their portfolios because of its tax-friendly framework.
The opportunity to stay over
One of the simplest methods to obtain a residence visa in the UAE is through real estate investment. Dubai has lowered its minimum investment requirement to AED 750,000 in an effort to attract foreign direct investments.
This applies to single-family homes that are not off-plan. Depending on the quantity of the investments, five- or ten-year visas are also offered. In addition to its attempts to draw in professionals, students, remote workers, and even retirees, it was a prudent move to attract high-net-worth individuals who desire to migrate to Dubai.
In addition to its COVID-19 reaction, it is important to note that the City of Gold has always been a reliable investment option. The demand for new residences will continue to rise as the Emirate develops year after year and diversifies its services as a top investment location, which investors stand to gain from.
