Overseas property
Articles

Benefits of buying property in UAE

28 views · Updated on
UAE

The United Arab Emirates has emerged as a global hub for business, tourism, and luxury living, making it an attractive destination for property investment. Whether you are considering a home for personal use or seeking a lucrative investment opportunity, purchasing property in the UAE offers a myriad of benefits.

Economic Performance of the UAE

The UAE boasts a stable and diversified economy, with a strong emphasis on sectors such as tourism, real estate, and technology. The country’s commitment to economic development and infrastructure projects ensures a thriving environment for property investments, promising sustained growth and long-term returns.

In 2023, the total number of international visitors to Dubai reached 17.15 million, which is a 19% increase from 2022 and a 2.5% increase from 2019 before the pandemic. The hotel occupancy rate averaged 77.4%. In 2019, it was 75.3% with 19% less room supply, while in 2022, it was 72.9%.

The growing number of tourists is boosting the emirate’s economy and infrastructure in popular areas, as well as driving demand for short-term rentals and properties in the city’s tourist centres.

Ksenia Kolesnikova Ksenia Kolesnikova Head of Sales Tranio UAE

The World Bank expects the UAE to achieve GDP growth of 3.7% in 2024 and 3.8% in 2025. The regulator predicts that non-oil GDP will increase by 4.6% in 2024. The Central Bank attributes the sustainable growth of non-oil GDP to the development of the real estate, construction, and manufacturing sectors.

Favourable Tax Regime

One of the significant draws for investors is the absence of personal income tax and capital gains tax in the UAE.

In the UAE, there is no income tax, neither for individuals nor for companies in the vast majority of business fields. The exceptions are subsidiaries of foreign banks and foreign oil and gas producers.

There is no annual real estate tax, capital gains, inheritance or gift taxes in the UAE. This applies to both natural and juridical persons. There is also no difference in the taxation of residents and non-residents.

This favourable tax environment allows property owners to retain more of their investment gains, making it an attractive option compared to many other global real estate markets.

Benefits of the UAE Lifestyle

Strategic location

Dubai is a major financial, transport and tourist centre of the UAE and the entire Middle East. There are two international airports here, one of which is the largest transport hub in the Persian Gulf, and two seaports.

Situated at the crossroads of Europe, Asia, and Africa, the UAE’s strategic location enhances its appeal for international investors. The country’s world-class airports and ports facilitate seamless connectivity, making it an ideal base for business and leisure travellers alike.

Luxurious lifestyle and amenities

The UAE is synonymous with opulence and luxury, offering a lifestyle that is unparalleled. From high-end shopping destinations to exquisite dining options, cultural attractions, and pristine beaches, the country provides a quality of life that attracts discerning property buyers seeking an elevated living experience.

The UAE is renowned for its state-of-the-art infrastructure, featuring modern highways, world-class public transportation, and futuristic urban planning. This commitment to infrastructure development enhances the overall convenience and accessibility of properties, adding to their long-term value.

Diverse Real Estate Investment Opportunities

The UAE offers a diverse range of real estate options, from luxurious apartments in iconic skyscrapers to waterfront villas and desert retreats. Investors can choose from a variety of property types that cater to different lifestyles and preferences, ensuring there is something for everyone in this dynamic market.

Property for sale in the UAE 866 listings on Tranio
The Community — investment apartments by Aqua Properties with 9,5% yield per annum in the center of the developing area of Motor City, Dubai for From $137,000 From $137,000
The Community — investment apartments by Aqua Properties with 9,5% yield per annum in the center of the developing area of Motor City, Dubai

Yield 9.0% Completion in: 2025.IV

High-rise residential complex with designer finishes by Swiss brand Franck Muller, Dubai Marina, Dubai, UAE for From $756,000 From $756,000
High-rise residential complex with designer finishes by Swiss brand Franck Muller, Dubai Marina, Dubai, UAE

Completion in: 2027.II Total of 649 apartments

New residence Armani Beach Residences with a private beach and swimming pools, Palm Jumeirah, Dubai, UAE for From $8,658,000 From $8,658,000
New residence Armani Beach Residences with a private beach and swimming pools, Palm Jumeirah, Dubai, UAE

Completion in: 2026.IV Total of 53 apartments

New residence Eywa with swimming pools, lounge areas and waterfalls on the bank of the canal, Business Bay, Dubai, UAE for From $2,706,000 From $2,706,000
New residence Eywa with swimming pools, lounge areas and waterfalls on the bank of the canal, Business Bay, Dubai, UAE

Completion in: 2026.II Total of 48 apartments

New luxury Cello Residence with swimming pools close to highways, in the prestigious area of JVC, Dubai, UAE for From $164,000 From $164,000
New luxury Cello Residence with swimming pools close to highways, in the prestigious area of JVC, Dubai, UAE

Completion in: 2027.I Total of 387 apartments

New high-rise residence 25h Heimat with swimming pools and a mini golf course near Burj Khalifa and Dubai Mall, Downtown Dubai, UAE for From $601,000 From $601,000
New high-rise residence 25h Heimat with swimming pools and a mini golf course near Burj Khalifa and Dubai Mall, Downtown Dubai, UAE

Completion in: 2027.I Total of 338 apartments

High-rise residence Me Do Re with swimming pools and a spa area in JLT, Dubai, UAE for From $428,000 From $428,000
High-rise residence Me Do Re with swimming pools and a spa area in JLT, Dubai, UAE

Built in 2023 Total of 470 apartments

Luma 22 — new residence by TownX with swimming pools and an underground parking in JVC, Dubai for From $298,000 From $298,000
Luma 22 — new residence by TownX with swimming pools and an underground parking in JVC, Dubai

Completion in: 2024.III Total of 400 apartments

Foreigners may buy property in the freehold areas of Dubai. The freehold areas include Dubai’s most popular districts, such as Dubai Marina, Downtown, Jumeirah, Dubai Creek and many other neighbourhoods including Dubai’s green suburbs.

The return on investments from purchases of residential property for rent in Dubai reaches up to around 5–7% per annum. Villas in Dubai generate a rental income of 3–6% and apartments yield 6–10% per annum.

Currently, in the primary real estate market in Dubai, these risks for end buyers are minimised at the legislative level due to stringent requirements for developers.

In February 2024, buyers completed 7,085 property transactions during the construction phase which is 39% more than the same period in 2023 (5,084 transactions). Compared to the previous month, the number of transactions increased by 5%.

The price per square metre in February averaged 5,495 US dollars. In February last year, a square metre was sold for 4,891 US dollars, which is 12.3% less expensive.

Investors are mainly attracted by high rents and yields, the emergence of new projects that promise high demand, rising costs per square metre and much more.

Residency in the UAE

A two-year residence visa is issued for purchasing real estate in Dubai worth from 205,000 US dollars. The property owner can arrange residency for his family, open a bank account and enjoy other benefits of being an Emirati.

Foreigners who can apply for a 10-year Golden Visa are investors who purchase real estate worth at least 2 million dirhams (approx. 545,000 US dollars). The amount invested in the property must not be obtained on credit. The property must be owned for at least three years.

Investing in property in the UAE goes beyond mere financial considerations; it offers a lifestyle synonymous with luxury, a stable economic environment, and a strategic location that places it at the forefront of global commerce. Whether you are looking for a dream home or a smart investment opportunity, the UAE’s real estate market continues to stand out as an enticing option for investors around the world.

Share the article
Subscribe not to miss new articles

We will send you a content digest not more than once a week

Subscribe
    I confirm that I have read and accept the Privacy Policy and Personal Data Processing Guidelines.
    Done!

    Tranio’s managers offer advice on buying real estate in the UAE
    Ksenia Kolesnikova
    Ksenia Kolesnikova
    Head of Sales Tranio UAE
    +44 17 4822 0039
    Send a request
      I confirm that I have read and accept the Privacy Policy and Personal Data Processing Guidelines.
      • 0% commission to Tranio
      • Residence permit support
      • Interest-free instalment