1. Foreigners Continue to Actively Invest in Dubai.Dubai secured the third position among the top locations for Foreign Direct Investments (FDI) in 2021, showcasing a high level of investor confidence in the city. The investment appeal of Dubai primarily stems from its safety, quality of life, and global connectivity.
2. Here you find some of the highest rental yields in real estate.Real estate in Dubai has the potential to yield returns of up to 9%, significantly outperforming most global markets at present. Simultaneously, the price of premium real estate here is several times lower than in other megacities like New York, Hong Kong, and Geneva.
3. There is no property income tax here.Considering that the UAE does not impose property taxes and has no plans to do so, it's not surprising that Dubai recorded the highest annual volume of real estate transactions in 2021 (AED 300 billion, USD 82 billion) in its history, despite the COVID-19 pandemic and travel restrictions.
4. Demand for property purchases is on the rise.Since the beginning of 2022, both the price and sales of residential properties in the UAE have been steadily rising. The total volume of real estate transactions has increased by 67%, with the average transaction value up by 168%.
5. The number of rental contracts being signed increases each year. In October 2022, the Dubai Land Department registered 53,756 real estate lease contracts. Of these, 60% were new contracts, while the remaining 40% were renewals. Seventy percent of the transactions were for residential properties, while 30% were for commercial properties. Ninety percent of tenants signed one-year contracts.
6. The government has a clear plan for regional development. Dubai has unveiled an ambitious economic development plan for the next decade, valued at USD 8.7 trillion. This initiative aims to double the city's economy and propel it into the top three most developed cities globally.
Upcoming Transformative Projects Include:- Increasing external trade from AED 14.2 trillion to AED 25.6 trillion over the last decade.
- Nearly doubling annual FDI to AED 60 billion.
- Raising government expenditure from AED 512 billion over the last decade to AED 700 billion in the upcoming one.
- Boosting private sector investments from AED 790 billion over the last decade to AED 1 trillion in the next.
- Ensuring an annual contribution of AED 100 billion to the economy from digital transformation projects.
7. Restrictions are being lifted, which will attract even more tourists. At the beginning of the year, Dubai announced the removal of a 30% alcohol tax, a move seemingly made to stimulate tourism and business.
8. The population is steadily growing.The UAE has seen an average annual population growth of 5 to 8% over recent years, one of the highest rates globally. In 2012, the population stood at 7.6 million. By 2023, it is projected to reach 10.7 million, and by 2033, Dubai's population is expected to be around 16 million. This growth is primarily driven by expatriates arriving in the country to live and work, making real estate an attractive investment.
9. The government is actively investing in infrastructure. The Dubai government is actively investing in the development of infrastructure and the construction of new districts. Projects like Dubai Creek Harbour, Dubai South, and Dubai Hills Estate offer a wide range of real estate options, including residential complexes, commercial properties, and luxury hotels. These infrastructure projects contribute to the growth of the real estate market and create new opportunities for investors.
10. It’s a politically stable state. The country maintains political neutrality. Dubai is known for its stable economy, favorable business climate, and openness to foreign investments. This creates favorable conditions for long-term investments.
Country rankings based on the level of trust in politicians: