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Investor’s Guide to Dubai Real Estate

Dubai real estate investment guide aims to educated potential investors on Dubai’s flourishing real estate market and to explain the current market situation, when is the best time to invest in Dubai & what are the key points you should be looking at before considering investing.


Whether you are an end-use or an investor, Dubai’s real estate market has always been one of the most profitable & safer option to gain higher ROI & secure a profitable long-term investment.


What Makes Dubai So Attractive?

It is a city where early investors have enjoyed the highest level of growth the global property market has ever seen. Since 2002, when the right of property ownership to foreign nationals was announced, property investors from all over the globe have watched their investment deliver strong returns.

Today the market has matured and is no longer based on speculation, a strong regulated & sustainable property market that has serious benefits when compared to other global property markets.


Benefits of Investing in Dubai:

- Tax-Free Investment

- Growing & Stable Economy

- Outstanding Infrastructure

- Variety of Option for All Budgets

- High Rental Returns (Average 6% - 7%)

- Great Location Where East Meets West

- Expo 2021

- Global Business Hub

- The City's Extraordinary Vision



Global Cities Compared


Dubai’s property market might be much younger than other global real estate hot spots. However, the city profits better average ROI than most metro cities in the world. A recent study by the international rating agency Moody's Investors Service revealed that the demand for housing in Dubai should continue to grow with an atractive ROI of 6% to 7%, as recorded in the last 12 months

 

City Average ROI
Dubai 7%
Montreal 5%
Bangkok 4.5%
Paris 3.0%
New York 2.9%
London 2.7%
Singapore 2.5%
Hong Kong 2.4%
*Data by Moody's Investors Service

 


Moreover, the city is well-known for providing an excellent value for money & even a better potential for capital growth.

 

City Prime Residential Value $ Per Square Foot
Dubai $580
Singapore $1,580
London $1,920
Paris $1,590
New York $2,510
Hong Kong $ 4,610
*Data from Savills Prime Index - Feb 2020




  Brief History of Dubai’s Property Market


It would be fair to say that Dubai’s property market started in 2002 when HRH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai declared freehold rights for owning property for non-nationals.

At the peak of Dubai’s property boom in 2007 RERA (Real Estate Regulatory Authority) was formed which brought various Rules and Regulations that streamlined transactions and registrations of ownership for land/property in Dubai.

Oqood was also launched in 2008 after law 13 was imposed which laid out a number of responsibilities for the Developer to adhere to and pathed the way for off-plan registrations (Oqood).

By the end of 2008 Dubai’s property market faced its biggest challenge, the global economy crisis hit Dubai’s market & properties saw a significant drop in just 12 months, buyers who where smart enough to invest then saw a huge return on their assets.
2013 & 2014 were prosperous years for both the economy and real estate market with strong population growth. Many new developments were launched with prices appreciating quickly. As confidence grew in the region, businesses flourished and more multinational companies started seeing Dubai