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How to choose a real estate agency in Dubai?
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20 Reasons to invest in Dubai Real Estate
1. Reasonable property prices
When compared to other global cities, Dubai's real estate often presents a more cost-effective option. Its property prices tend to be competitive in contrast to cities like London, New York, or Singapore
2. Expanding Market
Dubai's real estate market is dynamic, experiencing a steady demand for residential and commercial properties. This is a result of a considerable influx of international investors, businesses, and tourists.

There was a 95% increase in the volume of the primary real estate market compared to 2022. The number of transactions in March 2022 was 3,287, and in March 2023, it escalated to 6,400.

  • A record 90,881 real estate deals were completed in 2022.
  • There was a 42.1% growth in the number of deals in January and February 2023, compared to the same period in 2022, as per Arabian business research.
  • There was a 92.5% increase in sales of properties under construction in 2022, compared to 2021.
  • As of 23.09, there are 30,703 sold ready units and 39,196 sold off plan units for the year 2023 in Dubai.
3. Political Stability
The nation upholds political impartiality.

Dubai is recognized for its steady economy, encouraging business environment, and receptivity to overseas investments. This sets the stage for sustainable long-term investments.

*Country ranking based on the degree of public trust in politicians*
4. Excellent Rental Income
Dubai is well-known for its outstanding rental returns, particularly in prestigious areas because of the increasing number of visitors. This offers a consistent passive income for investors.

In cities like Singapore and Hong Kong, the return on residential real estate investment is 2.82%, and in London, it's 3.2%.

However, in Dubai, the return on investment has reached a remarkable 7.1%. Districts with well-developed infrastructure offer the highest returns. Jumeirah Village Circle takes second place in profitability with a rental income growth of 10% and a net profit of 8.86%. The Dubai Silicon Oasis district comes in third, delivering a solid 9.8% return with a net profitability of 8.38%.

Prominent areas in Dubai such as Dubai Marina and Jumeirah Lakes Towers have demonstrated rental profitability just over 7%. Luxury properties in beach areas and in the Downtown Dubai area ("platinum square kilometer") provide investors with net income of 5.59%, considering the high costs of purchase and maintenance of these residences.
5. Tax Advantages
In the UAE, there's no need for individuals to concern themselves with income tax, capital gains, or taxes on interest, dividends, royalties, wealth, luxury, gifts, and inheritance.

For businesses, there's no corporate profit tax. They also enjoy the luxury of not being taxed on dividends and capital gains, as well as on qualifying intragroup transactions and reorganizations.

Legal entities are subjected to a value-added tax or VAT at a manageable rate of 5% - one of the most favourable rates globally. For a little perspective, the average VAT rate in Europe stands at 21%.

*How VAT stacks up against other countries*
6. Increase in property value
In the past, Dubai has demonstrated a significant increase in property value.

*Changes in residential real estate prices in the UAE over 10 years:*
7. Real Estate Variety in Dubai
Dubai presents a diverse array of real estate options, ranging from opulent villas and apartments to commercial spaces. This broad selection provides investors with opportunities to find properties that align with their specific requirements and budget.

This vibrant city is a hub of exceptional features, including:

  • The world's tallest skyscraper
  • The largest shopping malls globally
  • Ambitious projects, such as the artificial islands "The World" and "Palm"
  • Villas reminiscent of Beverly Hills
  • Properties styled after Eastern countries and classic Italy
8. Infrastructure and Quality of Life
Dubai is developing at a rapid pace and offers modern infrastructure, high level of services, and comfortable living. This makes it an attractive place for living and investment.
9. Reliable Investment Projects
Dubai offers many reliable and professionally managed investment projects in real estate. This allows investors to select reliable and safe objects for their investments.

Available investment directions:

  • business
  • stock market
  • government funds
  • shares of investment funds
  • real estate
10. Economic Stability and Growth
Dubai has one of the most stable and fast-growing economies in the region. Government initiatives, high level of infrastructure, and attraction of foreign investment make it attractive for business and investors.

The dirham to dollar rate has been maintained for 15 years.

*GDP growth per capita*
As we implement the We The UAE 2031 plan, we aim to double the UAE's GDP over ten years, from 1.49 trillion dirhams to a projected 3 trillion dirhams.
11. Tourist Attraction
Dubai's top-tier hotels, shopping centers, restaurants, beaches, and entertainment events draw in millions of tourists each year. This significant demand for property rentals presents potential lucrative opportunities for investors.

A report by the Department of Economy and Tourism of Dubai reveals that from January to October 2022, Dubai welcomed 11.4 million tourists, doubling the figure from the same period in 2021.

With an annual influx of 15.3 million tourists compared to its 2.7 million local residents, Dubai demonstrates a notable difference of 459%.

The research places Dubai third in terms of tourist-to-resident ratio, outpaced only by Paris and Kuala Lumpur.

By 2031, we anticipate the tourist flow to the UAE to double, reaching 40 million people annually. The projected contribution to the country's economy from this sector is 450 billion dirhams.
12. Property Value Growth Potential
Dubai's dynamic growth and increasing demand for real estate suggest potential for future value appreciation. This presents possible opportunities for capital investment and high returns.

Dubai Real Estate Price Forecast for 2023

Bloomberg predicts a over 5% increase in housing demand in Dubai for this year, compared to 2022, based on statistical data. Bayut & Dubizzle, who have analyzed Dubai's property price trends over the past few years, share this prediction. Prices fell slightly in 2020 and 2021 due to the pandemic, but have since stabilized and started to rise.

Collectively, estimates from various agencies suggest Dubai property values could increase by 8% annually, amounting to about a 25% increase by 2026.

Analysts from Knight Frank Prime Predictions expect the luxury housing segment to experience the highest price increase in 2023. They predict property prices in areas like Palm Jumeirah and Emirates Hills could grow more than 13%, a world record compared to single-digit growth in major cities in Europe and America.

Knight Frank's property price chart for Dubai shows a steady increase in luxury housing value, with a nearly 50% rise by the end of 2023 compared to 2021.

The UAE consistently proves itself as a country with one of the world's most stable economies. Therefore, increases in housing prices are likely. Analysis of the Dubai real estate market indicates that housing demand, and subsequent price increases, are largely due to the prospect of solid rental income with an ROI of up to 8%. High liquidity makes property purchases in the UAE a reliable way to preserve capital, and in a few years, we could see it double.
13. Welcoming Legal System
Dubai extends a positive legal and regulatory framework to foreign investors, safeguarding property ownership rights
14. Global Business Hub
Dubai, a thriving international financial and business hub, draws entrepreneurs and investors from across the globe, fostering an encouraging environment for business growth and property value appreciation.

As per the Global Entrepreneurship Monitor (GEM) 2022 study, UAE is hailed as the top country to kickstart a business.

The study evaluated data from 50 countries:

2nd position – Netherlands
3rd position – Finland

A digital economy strategy got the green light from the UAE Cabinet. The aim is to bolster the sector's contribution to GDP from 9.7% to 19.4% by 2031.

Included in the strategy are:

  • Over 30 initiatives and programs
  • 5 burgeoning growth areas
15. Favorable Climatic Conditions
The warm climate of Dubai attracts tourists and potential residents from all over the world. This contributes to the constant demand for real estate, especially in the tourism and hospitality sectors.
16. Low crime rate
Dubai has a low crime rate and strict law enforcement. The protection of property and the safety of life and property are a priority for law enforcement agencies in the city.

Dubai ranked first in the ranking of the safest countries according to the global terrorism index in 2023 by the Institute for Economics and Peace.

Comparison of safety level with other countries
17. Safeguarding Property Rights
The UAE operates a reliable and efficient system for registering property and protecting the rights of property owners. This ensures investors enjoy the peace of mind that comes with the secured ownership and legal protection of their assets.
18. Ownership Confidentiality
Dubai offers unique frameworks like the "Dubai Land Department Trustee Initiative", enabling investors to maintain ownership confidentiality. This feature allows them to remain unlisted in registration documents.

In 2011, the United Arab Emirates (Dubai) was ranked 18th in the Financial Secrecy Index by Tax Justice, an organization specializing in this field. The ranking considered the level of confidentiality and the nation's share in the global offshore services market.

In terms of confidentiality, the United Arab Emirates (Dubai) scored 80 out of a possible 100 points.
19. Confidentiality of Property Ownership Information
Unlike certain other locations, Dubai does not mandate the public disclosure of property ownership details. This ensures the privacy and security of owner's information.
20. Opportunity to Acquire a UAE Resident Visa
Investing in Dubai's real estate could make you eligible for a UAE resident visa. This offers the chance to live in the UAE for an extended period, granting you various benefits, such as access to healthcare, education, and resident advantages.

A real estate investment starting from 750,000 dirhams (roughly $205,000) qualifies you for a 2-year Golden visa. Investments from 2,000,000 dirhams (approximately $545,000) come with a 10-year Golden visa. Your family has the potential to receive a Golden visa for the same duration as well.
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