In terms of a combination of demand, check volume and growth potential, Dubai will be a major draw for foreigners moving their money abroad over the next three to six months. Off-plan projects in Dubai Hills, Akoya Oxygen, Emaar Beachfront and other districts of the city only support this trend.
Property for sale in Dubai attracts investors from all over the world
There are two main reasons behind the fact that each year there are more and more people willing to invest in a real estate in the emirate.
- Minimum compliance and privacy for the investor
The main magnet is the low requirements for explaining the origin of funds and the fact that it is quite easy to transfer money from any country to the UAE. Buyers of real estate in Dubai can pay for transactions with either cash or cryptocurrency.
It was the weak compliance that attracted the flow of money from all over the world to Dubai and contributed to the growth of the real estate market, as well as enriched the local bankers and business elite. Perhaps this was due to “administrative loopholes and weak law enforcement practice,” according to the Carnegie Endowment. However, over the past year, the emirate’s market has become more transparent – it ranks 31st in the JLL Global Real Estate Transparency Index 2022.
Dubai differs from the most transparent markets in the world – the US and the UK – in the fact that there is no information about the owners of real estate in the data of the DLD. Dubai is one of the largest markets where a property buyer can still remain anonymous. And that is a huga advantage.
- Growth of the market and the economy as a whole
The pitfalls of investing in Dubai often include the belief that the market is overheated. However, financial analysts do not yet believe that a bubble is forming in the real estate market. For example, the Swiss financial holding UBS argues why the city’s market is priced fairly:
- Firstly, in the emirate, the cost of rent is rising due to increased immigration and the post-pandemic economic recovery. The dynamics of the disposable income of the population for the first time since the beginning of the pandemic has become positive. Rent growth has even outpaced house price growth over the past four quarters;
- Secondly, when investing in real estate in another country, it is always important to pay attention to the developer responsible for the construction of the property: to see how long he completed past projects, or what types of real estate he usually specializes in. However, in relation to the UAE market, the choice of a developer is associated with low risks – all the largest developers in Dubai are reliable companies. In the UAE, the state closely monitors the real estate sector, controls the largest developers itself, and also legally protects buyers from the risk that the developer will not complete the construction.
- Thirdly, housing is relatively affordable in the emirate, which limits the risk of price correction. It takes about six years for a skilled worker in the city to earn money for a 60 square meters. This is one of the lowest rates among other major cities in the world: for example, in Munich it takes ten years, in Paris – 15 years, in Hong Kong – 25 years.
Dubai also has one of the lowest payback rates – the period during which you need to rent an apartment in order to pay for it in full. An apartment of the same area in Dubai will have to be rented for 16 years, in London – 26 years, in Paris – 33 years, and in Munich – 44 years.
It should also be noted that real estate prices in the emirate range from USD 2,500 to USD 12,000 per 1 square meter, depending on the quality of the location and the stage of construction, which generally correlates well with the cost of production of this meter and analogues in other large metropolitan areas of the world.
Real estate in Dubai
Emirates.Estate website will provide you with a huge database of property options on the real estate market of Dubai. Have a look, choose your preferences, decide on the budget and start your search today.
