Dubai’s property market continues to grow with month-on-month transaction volumes increasing as it becomes one of the first destinations to reopen for visitors. Perhaps, the UAE’s energetic vaccination programme and open-door policies are paying off. In addition, initiatives like allowing long-term visas and citizenship to investors are encouraging many people to call the city their permanent home, while traditionally, around 75% of expats working in the country looked at it as a great place to live and work.
The week ending 17 June 2021, Dubai Land Department recorded a total of 1,921 real estate transactions, with a gross value of US$ 1.36 billion. Dubai’s prime residential real estate is one of the most affordable among major cities, and it has 42,356 homes valued at $1 million, second only to London. For wealthy Europeans looking to invest in real estate or individuals wanting to settle down in this thriving metropolis, it is one of the most favourable times to buy property in Dubai.
With the strong sterling rate environment, real estate in the emirate has become an attractive investment option for many. Investors from Switzerland, the UK, Germany, France, and Italy have been able to take advantage of gains made by the Swiss franc, sterling and the euro, as the US dollar weakened over the past few months.
Sterling is at its three-year high, which means buying a property in Dubai has become much more affordable. Indeed, UK investors, for example, buying in pounds, could now save over 20% when buying a luxury apartment as compared to prices in 2019.
Research also suggests that one-third of the city’s residential supply are villas – one of the fastest moving segment driven by Europeans moving to stay here in a city where they can still carry on their social life and manage their business. If you are in the market for off-plan projects, a recent study by Knight Frank suggests they are to become 14.8% and 11.2% cheaper if you are buying in euros or sterling.
Here are five more reasons why you should buy a home in Dubai now
Higher ROI
A major driver for property investment in Dubai is the consistent high return on investments. According to Property Monitor, a leading market data & insights provider, it stands above 5%, tempting many residents to buy investment units, whether to live without paying rents or own for the purpose of price appreciation or rental yield.
Long-term visa options
The UAE government recently announced regulations to allow citizenship and passports to investors and professionals, enabling them to acquire Emirati nationality under certain conditions; this single move can be a game-changer for the Dubai real estate sector. With other visa options like the UAE Golden visa, allowing students to sponsor their families, and providing a 5-year renewable retirement visa to the retired residents, Dubai is expected to see a less transient expat population which will eventually help increase the property demand.
Best lifestyle
Dubai offers the best work-life balance, where one can enjoy malls and beaches, high-end retail shopping and restaurants, the bustling industry and adventure sports. The recent relaxation in personal laws now allows much more freedom. These laws reflect progressive measures to improve living standards and enable the country to be the destination for foreign direct investment and people worldwide.
An attractive tax haven
Whether one is buying property to live or invest in, Dubai’s simplified tax system is the number one advantage to purchasing in the UAE. Beyond the property registration fee, which is 4%, there is no property tax in Dubai, and you won’t incur tax by renting your property out. The UAE doesn’t levy corporate or income tax, which makes it even more attractive.
World-class infrastructure
Dubai boasts stunning futuristic architecture, state-of-the-art infrastructure and has a fantastic transport system. In fact, the country has been rated ahead of the USA, Canada, and the UK for being one of the top 3 countries for infrastructure investment. With the recently launched 2040 Urban Master Plan, Dubai expects to be the best city providing a wide diversity of lifestyle and investment opportunities for citizens, residents and visitors over the next 20 years.