Blog details

Home Blog

How to choose property for investment in Dubai?

In a city as vibrant as Dubai, investing in real estate pays off well. In addition to a payback period of 10 to 20 years, a foreign investor in Dubai can also expect to be granted a local residency visa. However, you must be well familiar with how the emirate's property market operates in order for the acquisition to be effective.

This essay will teach you why buying real estate in Dubai is worthwhile, how to minimize risks, and what elements to take into account while making a decision.


-Why do foreigners invest in Dubai?

-Is investing in real estate in Dubai profitable?

Why do foreigners invest in Dubai?

-Real estate is regarded as the most profitable investment in Dubai. This is due to a number of factors:

-No taxes on income.

-Compared to many other popular destinations, the city and the nation as a whole have a high standard of living and a safe environment.

-A healthy economy unaffected by the pandemic and political upheaval. Analysts predict that it will grow by 4.5% in 2022.

-Only one of the 23 employees here is a resident of the state; the other 22 are foreign visitors who have integrated well into the community, demonstrating the emirate's cosmopolitan nature.

-Purchase simplicity and item design.

-The same terms apply to all expats when buying freehold real estate.

According to a recent study of more than 12,000 respondents, Dubai has gained popularity as a destination for second-home purchases because of its infrastructure, an effective pandemic response plan, and labor and visa changes. The survey was carried out by InterNations, a business that facilitates communication amongst immigrants all around the world.

Since the dirham's exchange rate to the dollar has not moved since 1997, many foreigners chose Dubai as their investment destination because they are confident that their money will be safe there. The ability to both save and grow investment is another argument in favor of this circumstance. To accomplish this, picking the appropriate item is crucial.

Is investing in real estate in Dubai profitable?

From several perspectives, it is possible to evaluate whether investments in housing stock are justified. Renting out your property to make money is one of the easiest possibilities. Interested parties should think about the following:
It is not required to live permanently in the UAE or look for tenants yourself in order to make money from rent; the management business will take care of these tasks for you.

Your ability to swiftly repay your investment will be influenced by a variety of variables. For instance, it depends on the neighborhood, the type of lease you select, the project's originality, the layout, the state of the housing, etc. Therefore, if housing is identified, a highly profitable investment is assured.

So, if homes are found in a desirable region, a highly profitable investment is certain (objects in tourist and coastal areas are in constant demand , as well as developed communities located near business centers). Studio and one-bedroom apartments are the most sought-after types of housing. In general, renting an apartment is simpler than renting a villa.

Both short-term and long-term rental options are available. In the first scenario, you provide short-term housing rentals (as a rule, this format works successfully in locations that are in demand among tourists, for example, in the city center or with access to the beach).

In the second scenario, a lengthy stay is specified in the contract; under these circumstances, the property may be situated in a less well-liked traveler neighborhood. Demand is influenced by a certain customer's request. Therefore, a possible tenant will consider your offer because your property has easy access to one of the key road interchanges in the emirate or because he works in an office nearby.

Each available home or commercial location has a unique ROI indication (Return on Investment, translated from English – return on investment). This indicator reflects the potential or current level of profitability of the real estate unit you intend to buy. 

After deducting all necessary expenses, the final sum is the return on investment in Dubai. Currently, the emirate has an average ROI of roughly 6%. In the end, this percentage will vary according on the sort of lease you have; for instance, a long-term lease may pay you 4–7% annually, while a short-term lease may pay you 11–13%.

Reselling an investment later on is an additional way to profit from it. In other words, it is possible to join the project during construction (this stage is called off-plan).