Benefits of buying property in 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.
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.
From $172,000
Yield 9.0% Completion in: 2025.IV
From $1,013,000
Completion in: 2027.IV Total of 291 apartments
From $303,000
Completion in: 2025.IV Total of 331 apartments
From $233,000
Completion in: 2028 Total of 300 apartments
From $223,000
Completion in: 2028.I Total of 255 apartments
From $398,000
Completion in: 2027.IV Total of 572 apartments
From $197,000
Completion in: 2026.IV Total of 381 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.
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