In 2022, the real estate market demonstrated remarkable transformation. Previously sought-after sectors relinquished their top positions, gradually fading into the background. New leaders emerged, occupying roles that were once secondary or tertiary. What do these new players offer to buyers to generate heightened interest?
Take Dubai, for instance, where immigration is the first thing that comes to mind. Approximately 90% of Dubai’s population consists of expatriates—businessmen, company employees, students, laborers, and individuals owning local real estate. Let’s explore what makes Dubai so appealing and why investing in real estate here is so advantageous.
Residency for Investments – Key Privileges
Staying visa-free in the UAE is possible for up to 90 days. By purchasing real estate worth at least 750,000 dirhams, an investor obtains UAE residency (equivalent to a long-term visa) for two years, and for a sum exceeding 2,000,000 dirhams, residency is granted for ten years (Golden Visa).
Dubai – the Path of Emirate Development
Acquiring real estate for residency purposes is not the sole reason for buying offices, apartments, or condominiums in the UAE. The real estate market has undergone such transformation that for many investors, the primary goal has become capital preservation. The pandemic, changes in banking deposits, and challenges in international transactions have compelled a keen focus on the East.
Why do investors find Dubai’s real estate market so enticing? Currently, it boasts a higher rental yield compared to other “golden billion” countries. The average property cost in the Emirates is around $200,000 – $205,000, placing the UAE on par with countries like Slovenia or Uruguay. In contrast to popular destinations like France, Germany, or the United Kingdom, where the average price is 2–3 times higher, the cost in the UAE is significantly lower.
In the last few years, Dubai has consistently demonstrated a high return on investment from renting out apartments. In major metropolises like London, Hong Kong, or New York, where rental rates do not exceed 4%, Dubai offers a minimum of 6.5%.
Why this cost? Over the past 40 years, the emirate’s population has multiplied by 10! Currently, around 3.6 million people reside here, and it is predicted that this figure will at least double in the next 20 years. This implies the construction of new residential complexes, infrastructure development, and excellent rental potential.
It is also essential to remember that Dubai is within an 8-hour flight from 70% of crucial global destinations. Dubai’s airport annually welcomes no fewer than 85 million passengers, with approximately 45% being businessmen opening offices in the UAE, relocating or initiating businesses in the Emirates. This, once again, leads to the construction of new business centers, increased demand for housing, and the development of infrastructure.