Due to the sheer amount of investment opportunities, Dubai has become an attractive target for international investors. Expats looking to live and work in leading global business hubs that offer a luxurious quality of life and a good working environment have Dubai as a top option.
Here is what you need to know about investing in one of the fastest-developing countries in the world.
Amount of International Investors
With desirable tax-free policies and little to no limitations on profit expenses, Dubai has one of the most notable track records for acquiring overseas investors. According to Invest Dubai, the emirate’s efforts to streamline regulation, support innovation, and develop human capital have paved the way for its premier presence today as the preferred global FDI destination for both Fortune 500 companies and new entrepreneurs alike.
Consequently, Dubai has generated its highest amount of rental activity in decades, outpacing many western cities as the biggest investment destination with an average annual rental yield going upwards of five percent. Real estate blog Kaizen reports Dubai’s real estate sector to have attracted 19,757 foreign investors, of which concluded 24,666 investments worth over Dh35.6 billion.
Cost of Living
Due to its portrayal in the media, many assume you have to make a six-figure salary to even consider living in Dubai. However, the cost of living is not as high as one might think. In fact, one of the reasons Dubai is such a popular destination for foreign investors due to its lack of income tax and minimal sales taxes. Rental costs and living expenses are also quite low compared to other urban cities like London or New York. According to DMCC, the average rent for a studio apartment in the centre of Dubai is AED 5,141.89 (USD 1399,92), with monthly expenses of AED 3,477.89 (USD 946,88). Similarly, the average home price in the centre of Dubai is AED 2,791,502 (USD 760,000).
Visa Opportunities (Portugal, Spain, Dubai)
Recently, the UAE has relaxed restrictions on their coveted Golden Visa to attract more expatriates. Along with slimming down their minimum investment requirements from AED 5 million to AED 2 million, the UAE also doubled its validity from 5 years to 10 years. Under the new amendments, investors are now entitled to obtain long-term residence when purchasing property loans from local banks.
Top Areas in Dubai
According to 99acres, the most sought-after real estate properties in Dubai are within Dubai Hills Estate and Dubai Silicon Oasis, both of which are luxurious residential areas. Palm Jumeirah, Dubai Marina, and Dubai Downtown are also popular locations because of their exclusivity and glamor.
The listings in these areas suggest that residential apartments dominate almost 75% of the housing demand in Dubai. Among them, one-bedroom and two-bedroom units have the highest demand, with prices starting from around AED 66,700.
Another popular configuration in Dubai is independent houses that generally comprise two bedrooms and above. The prices of these standalone units begin at AED 111,160.
GMG Dubai Mortgage
With up to 25 years, maximum 75% loan-to-value, and interest rates starting from 5%, foreign investors and non-Dubai residents can now obtain attractive terms to finance their Dubai property purchase.
GMG designed this program specifically for foreign nationals with particular focus on the ease of qualifying. The speed of the entire loan process will surprise you.
Get in touch with us today to find out more at [email protected].