Buying Property in- Dubai

Is buying property in Dubai a good investment

Picture of Syed Imran Hussain
Syed Imran Hussain

Founder | Director | Digital Marketing | Entrepreneur

The real estate market in Dubai is huge. It has long been a magnet for investors worldwide, providing a very interesting combination of financial potential, innovation and luxury. Supported by a variety of different projects, all escalating at an amazing pace, the Dubai real estate market is constantly going through a boom.

Even with this fact established, any potential investor is bound to question: ‘Is buying property in Dubai a good investment?’ Let’s find that out.

Table of Contents

Why Buy Property in Dubai?

buying a property in-Dubai

The Dubai Land Department (DLD) has reported an unprecedented 60,440 transactions that amount to around AED177.3 billion in only the first two quarters of 2023. 57% of the off-plan transactions fell in the AED500,000 to AED2,000,000 price range. These stats certainly demonstrate Dubai’s extraordinary appeal to investors actively looking for sustainable investment opportunities.

Being futuristic and vibrant in nature, this city nestled within UAE is known to be one of the top-notch global destinations for buying commercial property, both for running businesses, and for investment purposes. There are many factors that contribute to its allure.

Market Size

The real estate market in Dubai is colossal indeed. With a worth of billions of dollars, this multifaceted market encompasses a huge range of property segments, each having its own charm and value.

Its real estate and residential sector has undergone remarkable growth in the past two decades. From high-rise apartment complexes in Dubai Marina to the fascinating villas built on Palm Jumeirah, the city presents quite a huge spectrum of residential options.

The city does not offer diverse housing options, but also quite an array of commercial properties to boast. Its key business districts like Business Bay and the Dubai International Financial Centre (DIFC) have plenty of commercial spaces and corporate offices. Plus, it harbours over 45 free zones that continuously grab the attention of international companies looking to establish their foothold in the region.

Moreover, Dubai is world-famour for its hospitality sector that plays a monumental in increasing the popularity of its real estate market. Home to some of the finest and most luxurious hotels such as the Atlantis and Burj Al Arab that have an outstanding effect on attracting tourists, Dubai continues to outshine other regions in the real-estate ecosystem.

Foreign Investment

Forigen- Investment

Dubai has been very successful in luring foreign investors toward it. In 2019 alone, the foreign investment in the city’s real estate market was over $12 billion. The year 2020 saw the foreign investments in the real estate were around 35% of the cumulative real estate transactions in Dubai.

A report by the United Nations Conference on Trade and Development (UNCTAD) mentioned that the Foreign Direct Investment (FDI) flow in UAE had risen to about 10% more from 2021 to 2022. This statistic is consistently improving with time.

This incessant overflow of foreign investments is primarily due to the business-friendly policies in place in the city. Policies such as allowing non-citizens the right to buy and own property, and having no capital gain and property taxes are beneficial for foreign investors, making them prioritize Dubai over other regions when it comes to buying real estate property.

Iconic Projects

The past decade has witnessed a number of groundbreaking projects spreading their glory in Dubai, making the city carve its mark in the real estate world. Not only have these iconic ventures added grace to its skyline, but have also played their part in solidifying its status as a worldwide leader in architectural innovation.

Noteworthy landmark projects in Dubai include the Expo 2020 Dubai showcasing an exemplary architecture that draws millions of tourists towards it from across the globe every year. Another game-changing project in the city is the Dubai Creek Harbour, set alongside the Dubai Creek. The ‘Dubai Creek tower’ stands at its heart, and is quite a magnificent attraction like the Burj Khalifa.

In addition, other astounding projects like the Bluewaters Island, the Museum of the Future and the Al Makoum International Airport have both elevated Dubai’s global reputation, and diversified its real estate landscape.

Tourism and Expo 2020

Tourism is indeed one of the city’s biggest economic pillars. Offering tons of tourist attractions, and short-term rental options, Dubai is one of the hottest tourist destinations. 

Moreover, by hosting the Expo 2020 event, Dubai has brought in an astounding influx of exhibitors, businesses and tourists from every corner of the world. With more tourists flowing in the city, it has higher chances of more foreign investments in the real estate market.

Sustainability Initiatives

Dubai’s persistent pursuit of acing in real estate development is due to both its architectural grandeur and a dedicated commitment to focusing on sustainability initiatives. It has been focusing extensively on adopting green building practices that include energy efficient measures and environment-friendly development.

The real estate developers and architectures in Dubai have a special focus on Leadership in Energy and Environment Designs (LEED) as well as Estidama Pearl Rating system ensuring the new projects are constructed using sustainable practices. Features such as solar power generation, latest water-saving technologies and solar power generation are put into place in the developmental projects.

Moreover, the city has also seen a rapid emergence of many sustainable residential communities. Prioritizing pedestrian-friendly layouts, green spaces and sustainable transportation, these communities continue to strengthen Dubai’s status in the real estate ecosystem.

With all these factors in place, you can easily comprehend the numerous benefits of buying property in Dubai. By now your answer to your initial query: Is buying property in Dubai a good investment is likely to be a BIG YES!

Let us now move a step further and take a look at the different options available to buy property in Dubai.

Various Property Options to Buy in Dubai

Dubai presents a huge assortment of options for those looking to buy real estate property in the city. Whether you are looking for a place to make your home, real estate for investment purposes, or a commercial space to set up your business, Dubai has something in store for everyone.

Residential Properties in Dubai

For all those in search of opulence living, there are a number of luxurious villas established in prestigious housing communities like Jumeirah Golf Estates, Emirates Hills and Palm Jumeirah. 

Not only will you find luxury villas in the city, but also a wide selection of apartment buildings with options that range from easy-on-the-pocket studio apartments to sea view apartments to waterfront apartments high-end penthouses characterized by state-of-the-art living. Jumeirah Beach Residence (JBR), Dubai Downtown, Dubai Hills Estate, Dubai Creek Harbour  and Dubai Marina are best known for their apartment styled living options.

In addition, there are townhouses in the city too, that offer a sort of middle ground between apartments and villas. Town Square and Dubai Hills Estate are popular options in this category. The government of Dubai has also come up with economical housing initiatives like Dubai Sout and Dubailand that make homeownership a dream come true for aspiring homeowners.

Commercial Porperties in Dubai

Dubai’s commercial real estate domain is thriving for the past half a decade. Business districts of the city such as Business Bay, Sheikh Zayd Road and Dubai International Financial Centre offer lots of modern office spaces for companies interested in establishing and expanding their presence in Dubai.

Moreover, Dubai has a very strategic location that makes it a hub for trade and logistics. You can find warehouses and industrial parks in areas such as Dubai Investment Park and Jebel Ali. With the region’s retail sector constantly evolving and booming, there are scores of malls, commercial complexes and shopping streets that offer lucrative investment opportunities for people.

Hospitality Properties in Dubai

Being a tourist hotspot has grown the hospitality real estate sector of Dubai. Dubai Marina and Palm Jumeirah have prime locations for the purpose of hotel investment. 

Moreover, serviced apartments have gained immense popularity over the years that yield brilliant rental returns. You will also find vacation homes in areas such as Downtown Dubai and Bluewaters Island that have risen the vacation rentals in the city.

It is only when you start exploring the real estate ecosystem of Dubai that you fully comprehend its extraordinary glory. When it comes to buying a commercial property in Dubai, or any kind of real-estate for that matter, there are certain things you need to take special care of. Let’s explore those factors.

Deciding to Buy a Commercial Property in Dubai

Investing in commercial properties in Dubai can certainly be quite rewarding. However, when you do decide to buy a commercial property in Dubai, you need to be considerate of some important things.

Location of the Property

Choosing a property in the right location is a crucial element to consider. You need to analyse the proximity of the location to business districts, different amenities and transportation hubs before buying it. These factors affect its rental income as well as desirability.

Fees, Regulations and Lease Agreements

There are usually different kinds of fees and regulations attached with owning commercial property in Dubai. These mostly include registration costs, taxation and service charges. All these charges do vary according to the kind of property, and the location it is set up in.

It is a good practice to consult seasoned property consultants like Elan in the city. With their expertise and experience in the field, they can guide you best about the kind of commercial property to buy in Dubai, and the legal charges associated with it.

When it comes to buying commercial properties, there are different lease agreements involved such as tenant responsibilities, duration of the agreement and other legal terms. This is once again an area where real estate professionals can guide you best.

Market Conditions
Market Condition

Before jumping to buy a commercial property in Dubai, do gather information about the market conditions and trends. You should know the demand and supply trends relevant to the commercial property segment you have interest in. 

Market dynamics largely influence the property values and rental rates so understanding and analyzing them is always a good move so you put your best foot forward.

Capital Involved and Financing Options

You need to conduct an elaborate research on all the kinds of expenses including the management and maintenance fees associated with buying the commercial property you have set your eyes on in Dubai. This helps you have an estimate of the capital you will need, so you can then decide on the suitable funding options.

 

Figure out whether you will fund the property purchase with cash, or seek financial help from financial institutions or banks. Make sure to analyse how the interest rates will impact your investment.

What’s the Next Step to Buy A Commercial Property in Dubai?

We have discussed in detail about whether or not buying property in Dubai is a good investment, the kinds of commercial properties to buy in Dubai, and the various factors to consider when you decide to buy a commercial property in Dubai.

Your next step should be to conduct a thorough online research on your own, and engage a real estate professional so you make an informed decision. As for Elan, we have been in the real estate business for over a decade, and have empowered many commercial and residential property owners with the ability to find the best property to buy in Dubai.

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