What the authorities offer to emigrants in Dubai

A number of measures have been developed to stimulate investment, including:

A simplified visa system. It is enough to buy real estate in Dubai within the amount established by law. In 2020, the authorities made an unprecedented campaign, as a result of which the most profitable investors received a “golden visa”. This is a long-term residential program, in order to participate in which it was required to own real estate worth at least AED 5 million. Innovations in business. Investors no longer need to be part of the company owners of a citizen of the UAE. This greatly simplifies the registration process. Free economic zones are an additional advantage.

Do not forget about the tax-free policy in the country. Owning a house in Dubai does not require additional expenses. There are no taxes, and this also applies to non-commercial real estate that is rented out.

Current situation in UAE real estate market

The region began to develop actively not so long ago. The main misconception connects its success with oil, but even without it, the magnificent climatic conditions would attract tourists if there were comfortable living conditions in the Arab country. Today, the United Arab Emirates is striving to take a leading position in the world in terms of industrial progress and scientific research. Attracting third-party labor, including intellectual labor, causes an increase in demand for real estate in Dubai. Adjustments to the real estate market in the UAE were made not only by the fall in oil prices, but also by the global pandemic. The latter touched on the situation only superficially, because over the past three years there has already been a slight drop in prices in the UAE. The supply exceeded the demand, and the temporary closure of the borders only worsened the situation. In 2020, real estate transactions worth AED 72 billion were made in the country. The figures of one of the most popular cities in the state – Dubai – are used as the basis. The amount was significantly less compared to 2019. Investors reacted with concern to the economic situation in the world, but in 2021 everything changed. A smooth increase in demand was noted at the end of 2020, and since the beginning of the new year, demand has only increased.

Price overview

According to Emirates, Estate, the average cost of housing in the UAE, adjusted for popular regions, is:

AED 700,000 for a one-room apartment. $ 1,000,000 for a one-bedroom apartment. Two bedrooms can cost AED 1,200,000.

The highest price is indicated for separately located villas, townhouses and cottages. Here, the price can start from $ 3,000,000. The final price depends on the number of bedrooms, the area of the adjacent territory and the region of location. The leading positions are occupied by Jumeirah Beach Residence, Palm Jumeirah and Jumeirah Lake Towers in Dubai. The emirate was the first open after the lockdown, and is consistently popular both in residential and commercial real estate. Investors prefer housing closer to the coast, which traditionally attracts tourists and provides high profitability when renting it out.

What does the cost of housing in Dubai depend on?

According to the pricing criteria, the United Arab Emirates is largely independent of the main reasons affecting the cost:

Supply and demand. Experts note that the development of the central regions of the UAE will decrease. This is due to the limited area of the most popular cities. As a result, existing real estate on the secondary market in such areas will become more expensive. Comfort of housing. Even in one building, it can differ significantly not only in area but even in the view from the windows. Cheap apartments in Dubai are gradually being replaced by more expensive ones, people are ready and willing to pay for comfortable conditions.

Investment market and rental price

Special attention is always paid to this segment of sales. What could be better than buying an apartment on a warm coast and getting passive income from it? All conditions are created for this in the UAE: you can entrust the management of a real estate agency and make a profit, being far beyond the region. But changes are coming in this area. The state encourages homeowners by getting rid of taxes, but takes measures to regulate the rental market. Currently, the profitability ranges from 3.9% to 6-7%, depending on the type of housing. Landlords have no restrictions in choosing the rental price, but a law is to be adopted that will limit them in raising rental rates for three years from the date of signing the contract. Thus, landlords who choose a long lease term will be limited.

What are the prospects?

It is not always easy to plan the further development of the housing market in the UAE. Therefore, experts are cautious about the prospects, while opinions do not always coincide. The overwhelming majority, based on the analysis of price growth for the first half of the year, suggests that it is definitely not worth waiting for prices to decline by the end of 2021. It is likely that during the Expo-2020 exhibition, demand may continue in 2022, and the price may increase by another 1.8-3%. Opponents argue that after overcoming the crisis that affected the UAE due to the fall in oil prices and was aggravated by the pandemic, there is a high probability of maintaining existing prices. Thanks to the economic recovery, the latter statement seems controversial, because the sales of 2021 clearly demonstrate the growing interest of third-party investors to own apartments for sale in Dubai.

Your help in choosing real estate in Dubai

For those who consider the UAE as a country for moving to a permanent place of residence or profitable investments, the help of the professionals will be appropriate and necessary. An extensive real estate database in all regions of the UAE allows you to find your home in real-time. Do not miss the most interesting offers, start getting acquainted with the pricing policy of the UAE market and the advantages of individual regions of the country right now!

twitter facebook linkedin whatsapp

This subscription won’t wake you up in middle of the night, we are not your sweetheart! Register today for free and get notified on trending updates. I will never give away, trade or sell your email address. You can unsubscribe at any time.