If you are buying a house in Dubai or renting out an apartment or villa, this is a perfect way not only to save money when the UAE economy is trying to recover and during high inflation in the country, but also to make more money. The website https://emirates.estate/ is trying to understand all types of housing in the UAE, how it is profitable to invest in Arab real estate and what is happening with prices in Dubai at the moment.
Advantages of buying a property in Dubai
The average yield of apartments in Dubai is 6% per annum. As for villas, this indicator is 4.7%. Nevertheless, flats in the UAE can pay off in 16 years. And investments in villas can pay off for 21 years. Nowadays, both foreign nationals and tourists are interested in rented properties.
If you compare Dubai with other megacities of the world, a square meter in the capital of the UAE is cheaper. For example, this is about 5 times less than in London, 3.7 times less than in New York, and 3 times less than in Singapore.
Moreover, Dubai has zero property tax. In comparison with Hong Kong, it is 15%. After buying a flat in Dubai, you will not have to pay extra expenses. However, the zero deduction applies only to residential housing in the UAE, and commercial properties are subject to VAT at the rate of 5%.
The income from renting out residential housing in Dubai is significantly higher than in other megacities: on average, it is 5.8%, and in some areas, it reaches 10%.
It is not surprising that wealthy buyers from different countries tend to invest in residential properties of the metropolis.
Investors from the Asian region are especially active. Dubai currently ranks 12th in popularity with the residents from China. In the Arab country, 44% more people were interested in buying elite real estate in 2020 than in 2019.
Attractive investments in Dubai housing market
Dubai ranks third in the world in terms of the price of luxury residential real estate. For example, the price of a luxury villa is about $560 per square foot.
Apartments in the Burj Khalifa can be bought for about $510 per square foot, compared to $11,400 per square foot of luxury real estate in London.
For comparison, if you spend $1 million, you can buy a cosy apartment of 237 square feet in Hong Kong or 312 square feet in London. In Dubai, 1,604 square feet of luxury housing are being sold for this amount. And if you choose a flat of a non-premium segment, the housing area reaches approximately 3025 square feet.
Off-plan real estate in Dubai
If you are not going to settle in a new house in Dubai or rent out a flat, it is most profitable to invest in off-plan development projects. In general, housing under construction is 20-30% cheaper than finished apartments and villas in the UAE. After commissioning, the property will rise in price by approximately 1.5 times.
There is another benefit of having off-plan housing in Dubai. This is the possibility of buying it in instalments with a convenient payment schedule. Most local developers offer their clients payment schemes designed for some years. In general, the down payment is 5-25%. Then you will make fixed payments once a month or quarterly. You pay a significant amount when you receive your property. In some projects, this amount may not be transferred immediately, but within 2-5 years after the construction is completed.
The price of real estate in the UAE is growing with the building under construction. Thus, it is possible to resell property in Ras Al Khaimah profitably before it is completed.
If Arab developers and realtors have state registration, you can safely buy an apartment in Dubai from them. The Dubai Land Department has released a special one-stop-mobile application Dubai Rest. There you can find constantly updated information about official brokers, asset management companies, developers and their construction projects, as well as about DLD partners, valuators and so on.
Here is a list of companies with an impeccable reputation that you can entrust the transaction to:
• Emaar Properties;
• Meraas Holding;
• Dubai Properties Group;
• Damac Properties;
• LIV Developers;
• Select Group
Emirates.Estate provides qualified assistance in choosing a property in Dubai
Emirates.Estate has many years of experience and cooperates with verified agencies, realtors and developers. The information is carefully checked, which allows you to find an investment apartment in Dubai according to your wishes and preferences. Do not delay your choice, so as not to miss the most favourable real estate offers.