Why the Real Estate Market of the UAE is Worth Your Money
Wealth2 Minutes Read

Why the Real Estate Market of the UAE is Worth Your Money

May 10, 2024 Share

Are you looking to invest in real estate? Then, the UAE is definitely your go-to market.

Savvy real estate investors consider the Gulf, and especially Dubai, to be a top choice due to its dynamic economy, advantageous location, and investor-friendly policies. The following explains why investing in Dubai’s real estate market can change your investment portfolio:

Image Courtesy of Lonely Planet

Lower Property Prices Per Square Meter

Compared to many other worldwide cities, Dubai provides much-reduced property prices per square meter. A 120-square-meter flat in Dubai costs, on average, US $5,918 per square meter, according to data from the Global Property Guide. Cities like Hong Kong (US$28,570), London (US$26,262), New York (US$17,191), Tel Aviv (US$17,149), Geneva (US$16,467), Tokyo (US$16,322), Paris (US$15,867), and Berlin (US$7,325) have significantly higher averages than this.

Dubai is still reasonably priced when it comes to buying a home, especially when compared to other foreign cities. A respected real estate consulting firm, Alliance Business Advisors, published research that shows the average cost of a home in Dubai to be over AED 1 million (US $272,000). China Daily said that the average housing prices in other major cities, like Hong Kong ($1.2 million), Munich ($$1 million), Singapore ($915,000), Paris ($650,555), and New York ($644,026), are far higher.

Strategic Location

Dubai is a major hub for international trade, business, and finance, standing tall among the converging routes of Europe, Asia, and Africa. Due to its advantageous location, it has unmatched access to key markets, which attracts investors from all over the world.

Image Courtesy of Savills

Forecasted Growth

Forecasts by Savills Research indicate that Dubai’s upscale real estate market will likely keep growing as we aim toward the end of 2024. Dubai’s appeal as a desirable investment location is still strong, even though the growth rate may reduce slightly from prior years—expectations range from 4% to 5.9%. The city continues to captivate investors looking for desirable residential properties in the area, even in the face of changes.

Image Courtesy of Savills

Tempting Tax Policies in Real Estate: Zero Property Tax

Dubai’s tempting tax policies make for an inviting real estate investment environment. Because there is no property tax, capital gains tax, or income tax, investors may receive larger profits than in other foreign markets. It is clear that certain nations charge more taxes on real estate than others when comparing rates across national boundaries. The property tax rate in France is 1.70%, but it is 2.53% in the UK. Similar to this, the International Tax Competitiveness Index (ITCI) shows that Iceland charges a property tax of 1.48%, Greece levies 1.50%, and Italy has a rate of 0.71%.

Safety

Due to its reputation as one of the safest locations in the world to live, Dubai is a great destination to invest. As per the Gallup Law and Order Index 2020, the United Arab Emirates holds the fourth position in terms of global safety, surpassing the US (ranked 36th), the UK (ranked 49th), Germany (ranked 26th), and France (ranked 31st).

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