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Property & Investment News

Why Invest In Dubai

Dubai is known as a playground for the rich, and for a good reason, too: the city is unanimous with wealth, luxury and big business, and the prospects keep getting better. A recent report from Property Finder revealed that the real estate market in Dubai experienced a record-breaking year in 2022, with registered sales reaching 88,028 transactions as of November, up from 60,258 transactions in 2021.

Aside from its good weather and high quality of living, there are various tax incentives and financial benefits for investing in Dubai. The city is known for its business freedom, and the economy is backed by loads of international traders looking to take advantage of the UAE’s desirable business policies.

Here we explore the main benefits of investing in Dubai and why it has become one of the best locations for property development and investment:


Tax-free income


People from all over the world are enticed to live in Dubai due to their non-existent income tax for individuals, meaning workers can keep their full salary and choose to save or invest without concern over hefty tax bills.

Furthermore, the UK and Dubai have a double-taxation agreement, meaning UK citizens who choose to work in Dubai will not have to pay UK tax on their income.


High standard of living


Nationals from over 200 countries have made UAE their home, and expatriates make up the vast majority of the Dubai population at 88.5%. This is mainly because Dubai is notorious for its high standard of living, with the city an international hub for exciting nightlife, luxury shopping and countless unique dining opportunities.


Equally, the city boasts quality healthcare and education, with Dubai being home to more international private schools than anywhere else. In addition, the city is consistently ranked as one of the safest cities in the world, making it an appealing location to raise a family.


In ECA’s international 2022 survey, Dubai was ranked 23rd worldwide for its standard of living, putting the city far ahead of other international hubs such as New York, Hong Kong, Tel Aviv, Shanghai and Seoul. Furthermore, the UK-based Money Rated survey reported Dubai as the fourth best city in the world to relocate to in its 2021 Relocation report.


Competitive prices and rental yields


When looking at other leading cities, Dubai is superior as a result of its incredibly low property prices. Investors will find that the gross rental yield in Dubai is between 6 - 10% and an average return of 7.5%, far exceeding other investable destinations such as London and New York.


ValuStrat said the average residential prices in Dubai reached around 1,223 United Arab Emirates dirhams (AED) per square foot in 2022, up from around 894 AED in 2020. In August of 2021, Dubai recorded 5,780 property sales worth approximately 4 billion US dollars, and this was perhaps one of the best months on record for the past decade in Dubai’s history.


Despite such a strong performance, Dubai is still currently in its sweet spot for investors as the property is far cheaper than in other international hubs, yet the prices are only expected to increase, showing that there is real value for real estate investors in years to come.


Conclusion


Dubai is an attractive prospect for people all over the world due to its extremely competitive tax policies and offering of quality and vibrant lifestyles. The property market in Dubai is currently in its prime, with property prices low enough to make an affordable investment while high enough to maintain an impressive rental yield.


For property moguls looking to invest, Dubai’s property market is forecast to continue to soar in the coming years in accordance with its increasingly dominant economy, backed by international trade. Therefore, if there is a time to invest in Dubai, the time is now.

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