Foreign real property remains one of the most profitable directions for investment. An ever-growing number of foreign investors are choosing ready-made housing and Best Off-Plan Projects in Dubai.
The United Arab Emirates attract not only with climatic conditions and high quality of life, but also with affordable prices. The current economic situation in the country clearly demonstrates the profitability of investing in housing stock.
The main trends in the real property market in Dubai
According to https://emirates.estate/, The UAE economy for 2021 showed an increase of 3.1%. This clearly confirms the fact that the pandemic did not have a negative impact on the situation in the country.
Real property sales have also increased by 88% compared to 2020. Growth was a record for the first time since 2014 and is due to several circumstances.
- Increase in tourist flow due to vaccination and overcoming the negative impact of the pandemic.
- The holding of «Expo 2020», which has also contributed to the growth in the number of visitors coming to Dubai.
- The real property investment threshold lowering for the right to obtain a resident visa from AED 1 million to AED 750 thousand.
Given that Dubai is among the top most developed cities in the world, the interest in it from foreigners is quite obvious.
Why it is profitable to invest in flats and apartments in Dubai
There are three main reasons for this.
- Affordable cost. If the prices for apartments in Dubai are compared to the properties similar in area in New York, London, it is possible to clearly see that housing in the Emirates is cheaper. A great choice permits to select the best variant for any budget. There are both inexpensive studios and premium villas on the market.
- High profitability index. In the same London, the income from renting an apartment does not exceed 3% per annum. In Dubai, these figures can reach 5-8%, the final amount depends on the housing comfort degree and the prestige of its place.
- No taxes on personal income. The owner receives a net profit from the renting out real properties absolutely legally.
Prospects for the real property market in the UAE in 2022
Apartments are the top requested properties. But if studios were in high demand until 2021, the pandemic forced to reconsider the existing stereotypes. An ever-growing number of people prefer spacious housing both for movement to permanent residence and as a rental.
What to Know About Austin, TX Real EstateThe most popular districts are coastal and central. The housing in them has a high profitability ratio. It is profitable to rent an apartment in Dubai Marina, Downtown Dubai, Business Bay, Creek Harbor. The potential tenants are considering the villas in Palm Jumeirah, Mohammed Bin Rashid City, Arabian Ranches.
Foreign investors choose not only ready-made housing. Investments in off-plan properties are in increasing demand. Analysts note a quarterly increase in prices, so it is important to take this moment into account for those who are considering Dubai real property as an investment variant.
