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The United Arab Emirates is a country of great opportunities. This statement is especially true for the two largest and most technologically advanced cities – Dubai and Abu Dhabi. In these cities, there remains a steady flow of global investors due to large and ongoing ambitious projects. Real estate in Dubai is greatly sought-after among investors. In this article, you will learn about the ten main reasons for the demand for real estate as an asset in the UAE and why it is profitable to invest in residential and commercial properties.
Content:
- Why is real estate in the UAE a profitable investment solution?
Why is real estate in the UAE a profitable investment solution?
The United Arab Emirates is one of the few countries for beneficial investments. At the same time, given the high level of the country’s economy and loyal attitude to foreign businesses, the UAE remains a profitable investment destination.
The main reasons to invest in UAE real estate
No. 1 Real Estate Law
Until 2006, foreign citizens could not buy a full-ownership property in the UAE – they were only allowed to rent it for up to 99 years. With the introduction of a special law, foreign nationals can now purchase housing in specially designated freehold areas, rent it out or resell it.
The owners of real estate, renting it out, receive a high income. This initiative has attracted new buyers and investors and as a result, capital inflow into the country has increased.
No. 2 Visas for buying real estate and investments
Foreigners are eligible for a United Arab Emirates resident visa. Investing in real estate is one of the reasons. In Dubai, you can get a visa depending on the value of the property you purchase:
- you can obtain a 2-year visa if you buy a property in Dubai for AED 750,000 ($204,000);
- 5-year visa for real estate investments for AED 2 million or more ($544,500). Abu Dhabi has the same conditions for obtaining a 5-year visa.
Large investors can apply for a 10-year visa. To do this, they need to fulfil one of the requirements:
- invest at least AED 2 million ($544,500) in the country’s government bonds;
- have a deposit of at least AED 2 million in an investment fund in the country;
- create a company in the UAE with a capital of at least AED 2 million.
The ability to issue them to the investor’s family members (spouse and children) is another important feature of these visas.
No. 3 Tax paradise
In the UAE and in Dubai in particular, most activities are tax-free. There is also no personal income tax. Corporate tax for companies with income from AED 375,000 ($102,000) is 9%. A special tax is levied on companies and their activities related to the oil and gas industry and the banking sector.
No. 4 More affordable prices
As for the quality of the real estate, its location and amenities, prices of apartments in Dubai and Abu Dhabi are democratic: an average of $5,000 and $4,700 per 1 m², respectively. This is especially noticeable when compared to Hong Kong, where the average price per 1 m² is $28,900. It is followed by Zurich ($27,400), Seoul ($21,000), and Geneva ($20,700).
There is inexpensive real estate in Dubai. For example, the cost of some is AED 410,000 ($111,500).
No. 5 A growing economy
Dubai’s economic growth is one of the most important factors for investors when they decide to purchase real estate here. Progress in recent years has been achieved despite the impact of the pandemic – the emirate quickly launched a vaccination program and returned to normal life. The Dubai housing market continues to develop actively.
No. 6 Security
Dubai is one of the world’s safest cities thanks to its low crime rate. Another reason for the reliability of the emirate is its effective legal system, which protects the interests of foreign investors. If you are looking for a safe investment destination, Dubai will meet all criteria.
Another distinctive feature of the UAE is the reasonable policy pursued by the country’s authorities. The UAE government is actively developing infrastructure and improving living conditions to make living and being in the country as comfortable as possible.
No. 7 Tourist attraction
Over the past few years, the flow of tourists from all over the world to the UAE and Dubai has increased. Many visitors to the country, fascinated by how quickly this city has turned into a paradise in the middle of the desert, visit it several times. Dubai is a metropolis with beautiful beaches, luxurious hotels, luxury real estate, diverse entertainment, and exclusive boutiques. It is difficult to find such a combination in other parts of the world.
No. 8 Buying real estate for cryptocurrency
The UAE is one of those countries that introduce new technologies into everyday processes. The first property purchase for cryptocurrency in the UAE was made in Dubai in 2018. Both developers and realtors have accepted this payment method. The main advantages of buying a property for cryptocurrency are high transaction speed, low fees for money transfers, and large financial deals.
No. 9 Remote real estate purchases
You can buy an apartment in a new building in Dubai and Abu Dhabi, as well as a villa, townhouse or office, remotely. This is a common practice to attract foreign investors. The buyer does not need to be in the country to choose a property and conclude a deal. A real estate specialist will take care of all the necessary procedures related to the paperwork.
No. 10 A wide range of real estate
The United Arab Emirates offers a wide range of commercial and residential properties. The choice of locations and prices is also diverse – the selection of a suitable option is possible for any purpose, request, and budget.
If you want to find a place to live and invest in the United Arab Emirates, please contact Emirates.Estate specialists for help. They will choose the best option based on your goals, preferences, and financial capabilities, and will also help you make a deal as quickly and safely as possible.
