Why Invest in Real Estate in Dubai?
It’s been a few years now that Dubai has imposed itself as the new Eldorado for investors! It must be said that the city is both cosmopolitan and dynamic, with an international airport that serves all the cities in the world. As for investing in real estate, it is a winning investment insofar as you benefit from a particularly advantageous tax system! So if you are still hesitating to buy a property in Dubai, here is what you need to convince you!
Investing in a primary residence
If you want to take the plunge and buy a property in Dubai, the real estate market is one of the most dynamic in the world! You’ll be surprised to find relatively low prices with a lot of apartments for sale in very upscale areas. In addition, sellers are often open to negotiation with up to 20 or 30% less on the posted price.
On the other hand, the services are top of the range with luxury residences! In fact, most of them have swimming pools, a gym and a concierge service. In addition, you can perfectly apply to become a resident in the Arab Emirates by opting for the investor visa. For this, you just need to buy a property of minimum 250 000 € and reside more than 6 months in the territory.
Investing in rental property
As the city of Dubai is really taken by storm by many entrepreneurs, the demand for housing explodes! That’s why, as an investor, it can be interesting to invest in rental property. In just 2 years, prices have already dropped by 25% and you can now buy a studio for €90,000. In addition, and as the city is actively fighting delinquency, the agencies don’t let anything pass. And in the event of unpaid rent, the tenant has 48 hours to regularize the situation or risk being evicted or placed in police custody.
As far as profitability is concerned, it can reach 8 to 12% depending on the area. In addition, the city of Dubai applies a very interesting tax system with 0 taxes to pay! And as the Arab Emirates welcome a good number of expatriates, the city is resolutely turned towards the future with the objective of becoming the first tourist resort in the world by 2025!
What are the most popular neighborhoods?
To invest in a property in Dubai, you can already turn to the international district. Particularly cosmopolitan, it offers an excellent rate of return for rental, if you opt for a studio or one-bedroom apartment. On the other hand, there is little demand for large apartments in this area. In Dubai Marina, prices naturally rise as demand is high. It is a residential area with many restaurants and shops that are very popular with expatriates.
For the residential area of Palm Jumeirah, you are investing on an artificial island with luxury hotels, shopping malls and high rise buildings. Here, you won’t find anything for less than €200,000, even studios! As for Downtown Dubai, it’s a chic neighborhood very popular with tourists, especially because of the Burj Khalifa. For studios, you will have to pay €130,000 with apartments that can go up to €2 million for high-end services.
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- Real Estate Rental With Option to Buy;
- Buying a House as a Couple: 2 Things You Should Know.