Dubai is one of the best places in the world for living, working, and doing business. The reason for this is a favourable social and economic environment, as well as a high level of well-being in general. The city offers residents and investors many benefits not available elsewhere, such as
luxury houses for sale in Dubai the UAE. The nine most outstanding advantages of the emirate, that make it a great place for investments, were described by the official website https://www.axcapital.ae .
The relevant situation in the real estate market in Dubai
In order to understand the full benefits of property investments in Dubai,it is necessary to take a comprehensive look at the achievements and successes of the local market.
The ground-breaking performance of the real estate market in 2022 continues to surprise with success. In May, the market recorded a new all-time record in comparison with previous years. The total sales surpassed $18 billion and the number of transactions reached almost 7,000. So, the increase in sales volume amounted to more than 53.% versus the same period of last year. It strikes the attention that the demand for villas grew by 35%, while other property types did not show the same impressive results.
Figures of previous years versus current rates
In 2022, the cost of selling real estate is almost 100% higher than in 2021. At the same time, the sales figure increased by 65% and reached 34,742 transactions. This indicates that the metropolis remains a safe haven and an attractive destination for global investors. Moreover, in 2022, more than 14,500 properties were commissioned. This is 135% more than in 2021.
Mortgage transactions
Mortgage transactions are declining in number. This suggests that investors and cash buyers account for a big part of purchases.
Even despite the fact that the Federal Reserve or simply the Fed (the Federal Reserve System) raised the interest rate, the real estate market in Dubai did not suffer.
Price changes
In May, the average monthly price of a unit was the highest for all the years.
Apartment prices in projects under construction have increased by more than twice due to the fact that in May 2022 property sales were mainly in the central part and business districts, while in 2021 they were mainly in accessible areas. Ready-made villas are the only type that has shown a price reduction.
The value of real estate in May 2022:
Top 9 reasons to invest real estate in Dubai
The absence of taxes associated with real estate investments
One of the main advantages of investments in Dubai is the absence of property tax. This makes it the best place for potential investors. As soon as you purchase your own home in the emirate, you do not need to pay additional taxes in the years ahead.
Reasonable prices
The fact that Dubai's prices per square meter are lower than those of many other cities makes it an appealing location to acquire and own excellent real estate, making it one of the most alluring cities in the world for real estate investment.
High rental yield
If you want to earn a high return on investment by renting out your property, Dubai is one of the best options for that. Here, housing investments bring high rental yields, up to 9% per year. Depending on the specific location and type of property, the yield may go up or down, but on average, it will still outperform the return on investment from housing in the biggest cities in the world: Hong Kong, New York, and London.
An investor visa
One of the big benefits that motivate overseas investors is the resident visa. They are eligible to apply for it with property investments as minimum as AED 750,000. For this amount, a foreign citizen can apply for a renewable 3-year resident visa. It is possible to apply for a 5-year and 10-year visa with AED 2 million investments, respectively. The conditions for obtaining a visa permit differ depending on the specific emirate and the type of visa.
Safety
Dubai is also known as one of the safest cities and it is in the top 10 safest places in the world according to a recent survey. Dubai has a very low crime rate and an efficient legal system. This system plays a paramount role in attracting more investors to invest in Dubai across all sectors, especially the real estate market. Dubai ensures that local regulations always aim to ensure the safety of all its residents and citizens.
Land ownership
Freehold zones are another among the main reasons why it is worth to invest in the UAE. The so-called freehold zones allow international investors to purchase real estate in the city without the need for an intermediary and without any other restrictions. This is great for foreign residents because it gives them full ownership of the property. They can sell, rent it out or live in their own housing and it can be inherited by the heir.
Growing tourism industry
Dubai is believed to be one of the top travel destinations in the world due to its cutting-edge architecture. It makes this metropolis an attractive and ideal place for foreign direct investment. Especially the real estate sector may provide high cost effectiveness and fast return on investment.
Various investment options
One of the key factors drawing entrepreneurs and investors to the emirate is the fact that Dubai offers a wide range of investment opportunities in its real estate market which allows you to invest in various areas like residential property, hotels, room service, apartments, etc.
The growth in population
Due to its population growth rate, the fastest in the world at 10.7% yearly per year, Dubai's real estate sector is attractive. It is regarded as the greatest option by many people all around the world because of its infrastructure, strong economic growth, security, and stunning design and architecture. More than 120 different nationalities live here, that welcomes visitors from all over the world.
Are you seeking premium residential and commercial luxury properties? Discover plenty of options on the Ax Capital website. On the criterion of your preferences, needs, and possibilities, experts will choose a suitable unit and arrange a secure transaction with the owner.
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