In the past 10 years, Dubai has developed itself into a sought after city for both foreign investors and first-time buyers, becoming a place of attractive investment opportunities within the UAE.
Despite the reality that the buying market worsens globally, Dubai is showing no signs of slowing down. The real estate market is off to a strong start in 2023, and it is anticipated that it will prosper similarly to 2022. 88,028 transactions were made in total in 2022, surpassing 240 billion, a 61% increase over 2021. According to Provident Real Estate the market is still robust, with a 36% increase in sales from Q1 2022 to Q1 2023.
However with an average 21% increase from 2021, Dubai’s rental prices are substantially rising and it has become the ideal opportunity to consider entering the buying market.
Dubai’s real estate market offers various benefits to investors, including high rental yields of 5–9% alongside the absence of property tax, all of which make the market appealing to investors. Additionally, Dubai offers more space for your money as the cost of real estate is significantly lower per square foot than in other highly desirable cities. The implementation of relaxed visa regulations is another advantage of investing. This can also allow for the investor to obtain a residence visa when purchasing property of a certain value.
CEO of Provident Estate, Loai Al Fakir comments, ‘There is so much instability in the financial and political markets globally that Dubai has become a safe haven for many. Many foreign investors are choosing Dubai because of how simple it is to relocate as well as the city’s stability, safety, strong economy, and lifestyle’.
Research is an essential component prior to investing as there are numerous factors to consider. There are many developers in Dubai, therefore it is advisable to research and assess if they have a good track record with their projects. ROI is greatly influenced by location, so it is important to find prime locations whilst examining the value of the properties nearby and the amenities that are offered, such as retail stores, dining options, transport links, recreational activities, healthcare facilities and schools. To prevent legal complications, it is also key to become familiar with local laws and regulations related to investment and real estate ownership.
Considering and comparing finance options is crucial when making a purchase and investors should also keep in mind maintenance and additional costs that are included such as the RERA service charge.
The importance of working with an agent who specialises in the area or community the investor is searching for cannot be overstated. These representatives are able to respond to any queries and hold the most up to date accurate information regarding the area.
With Dubai just named the top tourist destination for 2023, there has never been a better opportunity to invest in the market than now.
