Dubai is a unique destination for those who want to invest, especially in real estate. It offers high rental returns to investors from all over the world. It also features dazzling skyscrapers and offers jobs in a unique atmosphere, making it one of the most dynamic cities and destinations for thousands of expatriates from various occupations and environments, from real estate investors and entrepreneurs.
Dubai surpasses major global cities in property investment returns.
Saleh Tabakh, an expert in investment portfolio management, stated that Dubai surpassed many major real estate markets all over the world regarding the returns of property investment amidst positive outlooks concerning the continuity of sustainable demand for real estate in Dubai, supported by renewed factors, which help upgrade the market.
“The excellence of Dubai’s real estate market did not emerge accidentally, but it was rather the result of a successful scheme regarding the legislations that regulate the market, as well as the presence of major influential players in the real estate development sector”, he adds.
Tabakh clarified that the international reports state that Dubai still provides real estate investors with the best value, as compared to the major global cities, let alone the fact that Dubai offers a safe investment climate amidst record growth rates on sales & unprecedented real estate activity.
Investors’ trust in Dubai is growing by the day
According to Tabakh, Dubai offers high levels of transparency in the real estate sector, a matter which strengthens the trust of clients & foreign investors and creates an investment experiment that puts Dubai’s property market among the world’s top favourite markets for investors.
He also confirmed that the governmental facilitations which aim to boost the population and attract wide strata of investors & creators within the context of the golden visa program establish a continuous demand in the property market, a matter which balances between the real estate stock and demand, thus, stimulating companies to launch dozens of projects during the next years. “The robust demand for Dubai properties is clear, as the residential units are presold within just a few days from the date of offering the same to investors & clients”, Tabakh added.
The expert in investment portfolio management indicated that the golden visa program and attractive investment opportunities stimulated the High-Net-Worth Individuals “HNWIs” to move to Dubai to buy their second, or even fourth, luxurious house, in transactions that are deemed the highest historically, as the amount of each one exceeded hundreds of millions of dollars. “Although the demand for real estate has receded in the majority of global capitals and the escalating recession due to high-interest rates, Dubai currently witnesses one of the best periods in its history. The reports underscore the facts that Dubai became one of the world’s top foreign investment destinations, particularly in the property sector”, he stated.
What made Dubai such an appealing investment destination?
Saleh Tabakh confirmed that The most notable factors which make Dubai’s property market attractive for global investors are represented in the higher annual rental returns that exceed 5% and greatly surmount their peers in other major global cities, e.g. New York (its annual rental returns are about 3%), London (2.7%), Singapore (2.5%), and Hong Kong (2.4%), according to the latest studies in this regard”.
“One of the main factors which prompt investors or individuals to purchase real estate in Dubai is represented in the low tax rate, as compared to other major markets, not to mention the strategic location that is convenient to the markets of Asia, Africa, & Europe”, he said.
The expert in investment portfolio management also highlighted the significance of zero property tax, as Dubai does not impose any tax on property purchasing. Thus, exempting real estate transactions from taxes is deemed a preferential factor that makes Dubai a favourite choice for property investment all over the world, particularly since the burden of the real estate tax is heavier in other countries, e.g. Britain (2.5%), France (1.7%), & Greece (1.5%), according to the International Tax Competition Index “ITCI”.
Deloitte: Real Estate Dubai Towards Further Growth 2023
Deloitte’s Real Estate Outlook for the Middle East 2023 has taken an optimistic look at the performance of Dubai’s real estate sector for 2023, the ninth annual report highlighting the performance of Dubai’s real estate sector over the past year. It has also discussed in depth the branches of this sector, such as hospitality and residential real estate, commercial offices and retail stores, as well as industrial facilities.
After analysing the performance of the real estate sector in all its categories, the report concluded with a set of key results, including the recovery of the tourism sector in Dubai from the effects of the COVID-19 pandemic, based on several indicators, notably the increase in average daily occupancy rates achieved by the hospitality sector compared to last year and the increase in unit prices in the hospitality sector. In addition, the report recorded an increase in sales of housing units and higher rental prices for commercial offices in the Principality.