It is no secret that Dubai is now an extremely popular place as the capital of wealthy people. However, the popularity of Dubai is due not only to direct flights or the reduction of alternatives to buy real estate.
For the past couple of years, Dubai has been attracting people from all over the world thanks to a strong economy, convenient immigration programs, and opportunities to make money on real estate.
That’s why https://lvrealty.ae/status/for-investment/ offer favorable conditions for investment in real estate in Dubai. A big plus is that all real estate is sold by the developer, and not through third parties. Thus, prices remain stable and not overpriced.
On the site you can order a consultation, for this, you will be allocated a separate consultant who will deal only with you.
Areas where you can invest in real estate in Dubai: Maryam Island, Aljada, Ras Al Khor, Al Barsha, Deira, Business Bay, Downtown Dubai, Dubai Marina, Damac HILLS, Palm Jumeirah, AKOYA Oxygen, Dubailand, Jumeirah Lake Towers and so on.
Dubai’s Economy Is The Second Largest In The Region
Last year, the UAE accounted for 10.2% of the financial wealth of the Middle East and Africa, and this share will only increase, according to Boston Consulting Group forecasts. By 2026, the financial wealth of the UAE should grow to $1 trillion.
In mid-2022, Dubai’s economic growth reached the highest level since the summer of 2019, indicating that the impact of the pandemic has been successfully overcome, according to a report by Standard & Poor’s.
Oil In The Dubai Economy: Overcoming Addiction
The UAE is considered the most diversified economy among the countries of the Persian Gulf, but so far Dubai is the only emirate whose welfare does not depend on oil.
Diversification of the economy of the rest of the emirates is one of the main goals of the UAE government. In the first half of 2022, UAE non-oil trade exceeded a trillion dirhams for the first time.
It grew by 17% and amounted to $431 billion. Non-oil exports in the same period grew by 8% to $49 billion, while imports grew by 19% to $158 billion.
Attracting Talented People from All Over The World
More than 80% of Dubai’s population are ex-pats. Entrepreneurs, artists, students, and skilled workers from all over the world come to Dubai thanks to a large number of visas and emigration programs.
To stimulate the business activity of foreigners, free zones have been created where special tax and economic regimes operate.
Dubai is also a point of attraction for millionaires, whose number in the city is constantly growing. Thanks to this, by 2030 Dubai will enter the top 20 richest cities in the world, according to analysts at Henley & Partners. So far, 67,900 millionaires and 13 billionaires will live in Dubai in 2022.
One of the Lowest Bubble Probabilities in the World
The Swiss financial holding UBS called the likelihood of a bubble in the real estate market in Dubai one of the lowest in the world. The Dubai market is fairly valued due to the growth in incomes of the population, the increase in oil prices, and the quick payback of real estate when renting it out.
The UAE dirham has been pegged to the dollar since 1978 at the rate of $1 = AED 3.67. The absence of currency fluctuations protects the UAE economy from price spikes and capital flight.
How to Make Money on Real Estate in Dubai
Our clients when buying property in Dubai are guided by two main strategies: either they plan to rent out the property, or they buy in the early stages of construction and resell at an increased price.
Profitability of Apartments in Dubai From Short-term and Long-term Rentals
To rent an apartment in Dubai for short-term rent, investors often choose hotel units. The convenience of buying a hotel room is that the owner will not need to look for tenants, populate them and monitor the condition of the property.
The entire rental business, from marketing to cleaning and handing over the keys, is taken over by the hotel. The yield of such objects is 6-12% per year.
Another popular option is to rent an apartment in Dubai for the long term. Since more than 80% of the population of Dubai are visitors from other countries, finding a tenant for an apartment is not difficult. The profitability of an apartment when renting a long-term lease is 4–6%.
Read more about the different ways to generate rental income in Dubai, profitability, and pitfalls in our guide.
Off-Plan Purchase and Resale Income
Property prices in Dubai are rising rapidly, so many people buy property under construction in order to sell it at the commissioning stage and capitalize on the difference in value.
In this case, the investor must understand that he takes on certain risks – there is always a chance that the market will stop or start to fall.
For example, this has already happened in the London market in 2014 – due to Brexit, cheaper oil, and new taxes on property ownership, all real estate has fallen sharply in value.
The Investor Is Protected By Law When Investing in The Early Stages of Construction
The Dubai new build market is regulated by the escrow law: before the start of construction, the developer is required to put approximately 50% of the construction cost in an escrow account in the form of cash or in the form of certain bank guarantees.
Further, the developer will be able to use these funds only after the project is completed by 50%.
With the introduction of such regulation, the number of unfinished projects in Dubai has significantly decreased, which means that the risks to the investor have decreased: it is simply unprofitable for the developer to stretch the deadlines or “freeze” the project.
However, despite the law, it happens in Dubai that the developer does not deliver the project on time. Our managers know the market well and openly warn about the shortcomings of certain projects and developers.
Dubai Real Estate: Features and Prices
Dubai can be very different: from apartments in skyscrapers for the ultra-rich – a picture many associates with Dubai, to areas with small townhouses or villas where middle-class families settle.
The most popular tourist areas are Downtown, Dubai Marina, and Palm Jumeirah. There, prices at the construction stage are 8-15 thousand dollars per square meter. meter.
The middle class wants Jumeirah Village Circle, Jumeirah Village Triangle, Motor City, and Damac Hills. The cost of housing in such areas – is 3-5 thousand dollars per square meter. meter.
Opportunities for Life, Travel, and Business With A Resident Visa
Open A Bank Account
The banking system of the UAE is very stable, and the reliability of local banks is one of the factors in the popularity of the Emirates among many ex-pats.
Apply For A Us Visa in The Queue for Residents
Unlike Schengen visas, US visas are allowed to be applied for from third countries where the applicant is not a resident. The UAE residence visa will help speed up this process because there are more windows for visa applications for Emirati residents.
Become A Tax Resident of A Country With A Comfortable Tax Regime
In Dubai, there are no taxes on personal income, including income from employment, rental property, dividends, and securities. There is also no annual property tax or inheritance tax. Corporate income tax is currently 0% but will be introduced as early as 2023.
It is worth noting that a resident visa by itself does not make its holder a tax resident of the Emirates. A foreigner becomes a tax resident of another country if he stays in it for more than 183 days in a year.
Open A Business or Register As Self-Employed
The authorities of Dubai strive to make the process of registering a company for foreigners as simple and clear as possible – after all, foreign entrepreneurs make a great contribution to the economy of the emirate.
Those who want to do business in Dubai have the following options: open a local company (mainland), open a company in the free zone, or register as a freelancer.
The advantages of doing business in the UAE are low taxes, simple and understandable reports, lack of corruption, and quick registration of a business residence permit. Free zones also offer additional bonuses to their residents: they provide accounting services, and coworking, and are looking for contractors.