What makes Dubai a 5-star real estate investment destination

Why do people invest in Dubai? High Yield Advisors explores the different reasons to why people invest, from a family home, holiday home, or to build a successful investment portfolio.

  1. Family Home

Many factors support buying a family home for families throughout the city. Dubai has been developed to be a friendly and accessible environment. Every community in Dubai is well designed and offers outstanding facilities to support growing multi-cultural families. 

  1. Cleanliness, high standard of cleanliness and Dubai knows how to keep its streets and communities clean all the time.
  2. Basic Infrastructure. network of medical centers, public and private hospitals, you will get the best healthcare service. Dubai has got the best schools, colleges and major international universities have established their campuses.
  3. Security. Dubai police is famous for its law and order maintaining skills. Due to strict regulations, Dubai is also very safe from outside threats as well.
  1. Holiday Home

One of the fastest growing sectors for Dubai is tourism, attractive places and many world record attractions capture the interest of people to visit the city.   

  1. Buy Property in Dubai and Get an Investor Residence Visa. The property value should be equal or above Dh1 million to qualify for UAE resident visa.
  2. No Tax on Your Dubai Property. Buying a real estate means that you must pay government taxes on that property. The benefit of buying property in Dubai is that, you don’t have to pay any tax on that property.
  3. Great Weather and year-round activities. The sunny beaches of Dubai that are usually at a walking distance from your property are a great source of leisure for people who want to buy their holiday home in Dubai.
  1. Investment Portfolio

The biggest driving force behind real estate purchase is the investment opportunity. It is the best way to consolidate your funds and let them grow while enjoying the benefits of yearly rental income should you choose to purchase a property as an investment.

  1. Buying Property in Dubai Costs Less. According the research of global property guide[i], comparing to other real estate capitals around the world, Dubai places its self in a good position when comparing the price per sq. meter.

Country/City

Buying Price

US $ per Sq. Ft.

Buying Price

US $ per Sq. Mt.

UK, London

1,875.71

20,190

US, New York

1,597.1

17,191

Japan, Tokyo

1,516.37

16,322

France, Paris

1,098.95

12,748

China, Shanghai

1,098.95

11,829

Australia, Sidney

995.09

10,711

Canada, Toronto

990,07

10,657

Italy, Rome

784.01

8,439

Netherlands, Amsterdam

641.22

6,902

UAE, Dubai

549.80

5,918

Cayman, Grand Cayman

386.76

4,163

Bahamas

337.42

3,632

Egypt, Cairo

77..20

831

Can you see the difference? Average property price in Dubai is merely USD 549 per square feet which is at least 6 times less than the most expensive city in the list, London.

  1. Zero Property Tax in Dubai. Dubai is famous worldwide among real estate investors because you don’t have to pay any tax on your property. One of the biggest attractions for foreign investors who come from a tax qualifying country. Many key global residential markets have experienced rapid reform of property taxation over recent years, with additional purchase taxes and levies directed at foreign buyers.

Country/City

Income Tax on Rent (Effective Rate)

Capital Gains Tax (10 Yr Holding)

Round Trip Transaction Cost

US, New York

30%

5%

9.82%

Canada, Toronto

25%

25%

8.05%

Australia, Sidney

24.38%

45%

12.46%

Italy, Rome

17.25%

n.a.

16.13%

Netherlands, Amsterdam

13.42%

1.62%

8.25%

France, Paris

10%

33.30%

18.45%

China, Shanghai

5%

20%

5.35%

Egypt, Cairo

3.75%

n.a.

11.17%

Japan, Tokyo

3.4%

15%

9.60%

Monaco

1%

n.a.

17.57%

UAE, Dubai

0%

0%

6.01%

UK, London

n.a.

28%

8.03%

5

Bahamas

n.a.

n.a.

17.30%

Cayman, Grand Cayman

n.a.

n.a.

17%

  1. Buying a Property in Dubai Offers Higher Rental Yields. According to the report published by Global Property Guide, the below table represents average net rental yield % for the city above selected. Rental yield range offered by Dubai nowadays, can be 4.43% to 7.98% according our update historical analysis[ii], on last 8 years prices/rent trend per areas[iii]. Dubai sits at top with a very conservative average rental yield of 5.82%.

Country/City

Net Rental Yield                               (% per annum)

Remarks

Egypt, Cairo

9.09%

Excellent

Bahamas

8.16%

Excellent

Cayman, Grand Cayman

7.25%

Good

UAE, Dubai

5,19%

Moderate

Canada, Toronto

3.95%

Poor

Netherlands, Amsterdam

3.72%

Poor

US, New York

2.91%

Poor

France, Paris

2.79%

Very Poor

Japan, Tokyo

2.66%

Very Poor

UK, London

2.61%

Very Poor

Australia, Sidney

2.52%

Very Poor

Italy, Rome

2.37%

Very Poor

China, Shanghai

2.1%

Very Poor

Monaco

1.41%

Very Poor

 

[i] http://www.globalpropertyguide.com.  Buying Price per Square Meter, the Rent per Month (sq. m.), and the Gross Rental Yield are based on our yields research. Figures are typically based on the average for a 120 square meter apartment (in most locations – see mouse overs). The apartments are typically in a prime inner-city area, except in the Caribbean or Pacific.

[ii] Data updated from Reidin, https://www.reidin.com, Real Estate Information based on Dubai Land Department. 

[iii] Many areas are classified risky, according the upcoming and consolidate development. 

 

 

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