Should Real Estate Be Your First Investment Priority When Moving To Dubai

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July 15, 2020

The world has seen its ups and downs from global stock market volatility and opportunity to house prices teetering on the verge of a 30% crash in the UK. It’s never been a better time for anyone to invest in anything they can in preparation for the control of COVID-19 and a market and property correction. 

Our wealth managers based in Dubai have helped our clients invest in different markets that have seen huge growth for short term and long term gains. A lot of us are still looking for safe havens for our savings and investments and they still exist, however, those safe havens could continue to take a bruising as life finds its stability again, although it does seem to be becoming more balanced every day. 

Right now, we are advising even our more risk-averse investors to take a chance in the markets and so shine a spotlight on property in Dubai as a safe haven in very uncertain times.

It’s rumoured that even Warren Buffet is now looking at Dubai as a great investment opportunity.
Dubai has a short but rapid growth history. From 1966 to present-day below. As a nation what this country has accomplished is astounding. We predict only more growth for this vibrant location.

Are you interested in real estate investment in Dubai, but don't know where to start? We have the best team on the ground here in the UAE that can help you with everything click here to find out more> 

Where to invest in property

1. Hotel investment

Dubai is an exciting and bustling tourist destination. It has seen 30.1 million total nights booked in rooms across the board. It welcomed 15.9 million tourists in 2019, making it the fourth most visited city in the world. With projected vacation travel rates hitting 25 million by 2025, you can’t go wrong investing in their booming hotel market.

The areas to look at: 

Barsha Heights

Dubai Marina 

Jumeirah Village

Business Bay

Dubai Sports City

2. Tax-Free Property

The other benefit to buying a property in Dubai is that you do not have to allow for stamp duty and other taxes, so the margin you would lose in places like London and New York will be safe in your wallet. Learn about other ways to save in areas such as repatriation tax for the UAE with our taxation services.

3. Rental schemes and incentives

Are you low on a deposit and want to purchase a second or third home? You can now use Dubai’s rent to buy scheme. Whereby the property seeker pays a higher rental price for the property, but this is justified because it goes towards owning the property and helps those without the 25% deposit. This also works in the hands of any potential larger investors reading this and investing in apartment buildings as it’s now more affordable and easier to purchase property in Dubai. 

The government has also decided to cap the number of units that are completed each year. This cap will create new demand and a sure-fire way to get ROI for investors in Dubai.

If you are purchasing a property as an investment opportunity you can expect to achieve a gross rental yield of between 7-12% with Dubai offering much higher returns than anywhere else in the world.

Do you have money in other countries you could leverage from a pension or feel safer placing your investment in a pension? Contact us here to learn more about pensions and transfers> 

Buying property in Dubai is affordable

With the zero tax opportunity on property, Dubai is the cheapest to purchase property for a good return. London is by far the most expensive with each square foot costing USD 3,208 compared to Dubai’s USD 468.

With that in mind let’s assume you have bought two properties one unit in London and one in Dubai. The average rental yields in London stand at around 3.21% while in Dubai they are 5.82% and in some areas even over 10%.

Dubai is a huge attraction for people from all over the world so if you are looking to invest in something more stable than the stock markets then a property is your best option. Even more so now with prices and negotiations being the best they have ever been, it's the perfect time to buy. 

We have a dedicated team here at AI Investment that knows the UAE market very well and can advise you on laws and regulations and also best areas and places to purchase. They can also help with investments in the hotel industry.

So if you are wondering if property is a good investment in Dubai and if it’s the right time to buy we say YES there has never been a better time to purchase property with all the above for it and more.

If you need to know anything else contact us.