Over the past 10 years, Dubai has developed into a city sought after by foreign investors and first time buyers as an attractive place for investment opportunities within the UAE.
Despite the reality of a deteriorating buying market globally, Dubai shows no signs of slowing down. The real estate market got off to a strong start in 2023 and is expected to boom at a similar level to 2022.
In total, there were 88,028 transactions in 2022 for over $240 billion, an increase of 61% over 2021. According to Provident Real Estate, the market remains strong, with sales up 36 per cent from the first quarter of 2022 to the first quarter of 2023.
However, with an average growth of 21% compared to 2021, rental prices in Dubai are rising significantly and this has become an ideal opportunity to consider entering the buying market.
Dubai's property market offers a variety of benefits to investors, including high rental yields of 5-9%, along with no property taxes, all of which make the market attractive to investors.
In addition, Dubai offers more room for capital as the cost per square foot of real estate is significantly lower than in other highly desirable cities. The implementation of relaxed visa requirements is another advantage for investment. This also allows investors to obtain a residence visa when purchasing a certain value of property.
Loai Al Fakir, CEO of Provident Estate, commented: "There is a lot of instability in the global financial and political markets and Dubai has become a safe haven for many. Many foreign investors choose Dubai because of the ease of relocation and the city's stability, security, strong economy and lifestyle.
Research is an important part of the pre-investment process as there are many factors to consider. There are many developers in Dubai, so it is advisable to research and assess whether their projects have a good track record.
Return on investment is heavily influenced by location, so it is important to find prime locations and also examine the value of nearby properties and the amenities on offer, such as retail outlets, dining options, transport links, recreational activities, medical facilities and schools. To prevent legal issues, it is also key to be familiar with local laws and regulations relating to investment and property ownership.
When making a purchase, it is vital to consider and compare financing options, and investors should also bear in mind the additional costs of maintenance and inclusion, such as RERA service charges.
The importance of working with an agent who specialises in the area or community in which the investor is looking cannot be overstated. These representatives will be able to answer any queries and have accurate and up-to-date information about the area.
As Dubai has just been named a top tourist destination for 2023, now is the perfect time to invest in the market.
