Dubai is becoming an international trade and tourism center. It is one of the safest cities in the world with a fast-growing economy. The average annual return on investment in local real estate and off-plan projects in Dubai is 5-10%. The city offers high rental rates, rapid capital gains, and a tax-free system. Therefore, apartments for sale in Dubai, villas, and penthouses for sale in Dubai are in high demand among Arab and foreign entrepreneurs.
Reasons to invest in real estate in Dubai
Local real estate attracts Arab and foreign investors for the following reasons:
- The city offers higher rental yields for residential and commercial real estate than in other more mature real estate markets. On average, investors receive 5-10% per annum.
- Local property prices are lower than in many popular tourist cities. This makes the emirate an affordable place to purchase luxury penthouses and villas for sale in Dubai.
- The Arab Visa Law allows investors to obtain a residence permit subject to the conditions. The purchase of real estate for over AED 1,000,000 gives a 2-year residence permit, over AED 5,000,000 – a 5-year residence permit, over AED 10,000,000 — a 10-year residence permit.
- The absence of property taxes and stamp duties also make Dubai’s real estate investment attractive.
What to look for when choosing a property for sale in Dubai
High return on investment (ROI) is a key criterion. Some factors that may affect the profitability of flats in Dubai are:
- location;
- proximity to infrastructure (bus stops, educational institutions, post offices, hospitals, shops, etc.)
- area size;
- quality of materials in the construction;
- market conditions;
- interest rates;
- real estate maintenance costs.
Where are the most profitable off-plan properties for sale in Dubai
In 2022, the TOP 5 best areas of Dubai for real estate investment include:
- International City. It is one of the most profitable residential areas in the ever-expanding Dubai market. Renting out real estate on average brings from 7% to 8.4% per annum.
- Sports City. Rental income brings local property owners from 7% to 7.4% per annum.
- Al-Furjan — 6.3-6.7% per annum.
- Palm Jumeirah — 6.3-6.5% per annum.
- Dubai Marina — 5.5-6.4% per annum.
How to choose a property for investment in Dubai
Qualified specialists of a reliable real estate agency in Dubai will select residential and commercial real estate for investment. In the Dubai market, AX Capital is the most trusted company. The agency’s team accompanies its clients at all stages of the transaction, helps with solving financial and legal issues, and provides high-quality after-sales service.
