Dubai property market has become one of the most desirable destinations for investors. Having no capital gains and income tax rates helps them to maximize their profits while enjoying stable economic conditions.
In this article, we’ll cover the Dubai real estate market overview, the main reasons to invest in Dubai’s property market, and the key areas for investment.
- The main reasons to invest in the Dubai real estate market are its investor-friendly tax system, an opportunity to receive a golden visa, and high rental returns.
- The key areas for property investment in Dubai are Downtown Dubaի, Dubai Marina, Palm Jumeirah, Palm Jebel Ali, Business Bay, and Jumeirah Village Circle (JVC).
Overview of Dubai’s Real Estate Market
In 2023, Statista conducted research and mentioned that the real estate sector in Dubai contributes 8.2% to the emirate's GDP and is a key employment driver for its expatriate workforce. Considering the fact that Dubai is the emirate’s key tourist destination, it’s an appealing investment destination for many investors. Investment villas make up most of the urban buildings, with nearly 72,000, followed by around 40,600 private villas.
DXB Interact, based on the Dubai Land Department database, stated that in 2024 there have been 150.7K property sale transactions (including apartment sales, villa sales, etc), which is 37.11% higher than in 2023. These numbers indicate Dubai's real estate growth, which is one of the main reasons why investors should consider investing here.
Why Invest in Dubai’s Property Market?
Investing in the real estate market in Dubai comes with many benefits. Some of them are:
Investor-friendly Tax System
Unlike many other global markets, Dubai comes with no income tax rate, no capital gains rate, no inheritance tax, free zones, and 100% ownership. This makes investors enjoy maximized profits.
Opportunity to Receive a Golden Visa
If you meet the eligibility criteria and invest at least AED 2,000,000 (~$545,000) in the Dubai property market, you’ll be granted a Golden Visa, which is your path to receiving citizenship.
High Rental Returns
Dubai rental returns range between 5-8% which makes its property investment one of the most rewarding and desirable. This is mainly connected with the fact of having a strategic location. Being placed between East and West, Dubai attracts lots of tourists, who increase the demand for residential and commercial estate.
Real Estate Investment and Residency by Investment
Dubai's property market is well-known for its wide range of properties such as apartments, villas, hotels, and duplexes. Additionally, having no capital gains, high rental returns, and a stable economy, it becomes an attractive option for investors. One of the main reasons why real estate investment in Dubai is desirable is its residency by investment program. Investing at least AED 750,000 in the Dubai real estate market and meeting eligibility criteria will make it possible to apply for a 3-year residency. If real estate ownership is registered for spouses, the required amount is AED 1,000,000 ($272,255). If you want to receive a 10-year Golden Visa, you need to invest at least AED 2 million in the property market in Dubai.
To sum it up, in this article we’ve talked about the property market in Dubai, explained which key areas are considered the best to make a real estate investment and what are the legal considerations for a foreign investor.
Contacting agencies like Mirabello Consultancy helps you simplify the process of making an investment and applying for a Golden Visa.
FAQ
The UAE Golden Visa grants residency to investors, entrepreneurs, and professionals. For the investors, the main requirement is investing at least AED 2,000,000 (~$545,000) in the Dubai property market.
If you want to be eligible to apply for a Golden Visa, one of the key steps is showing proof of having sufficient funds. For Dubai, the minimum amount of investment is AED 2,000,000 (~$545,000).
Some of the key benefits of the tax system in Dubai are no income tax rate, no capital gains rate, no inheritance tax, free zones, and 100% ownership.
Yes, investing in the UAE real estate market can lead to getting citizenship. The goal of this citizenship-by-investment program is to attract foreign investors to make a significant contribution to their country.
Read more about UAE citizenship
Purchasing a property in Dubai also means that you can apply for a mortgage from Dubai banks. However, as you’re a foreigner, they might have fewer options for you to choose from, and the mortgage terms will be different among different banks.
