Real Estate

Dubai’s Most Advantageous Communities: Where Investors from Other Countries Can Acquire a Property

Every year more and more overseas investors arrive in the UAE and more and more entrepreneurs are interested in house prices in Dubai with a sea view and ambitious residential complexes and communities in different emirates of the country.

The UAE has a lot to offer these property hunters. Let’s have a closer look at why investors prefer this country, which areas are the most popular and at what price are investors willing to buy a local housing unit.

Why Dubai Is a Priority for Investors

Dubai’s property industry is becoming more beneficial as people around the world seek safe and sound spaces, tax breaks and lucrative investment opportunities. Leading real estate online resources show that buyers from the UK and India made the largest number of transactions in the emirate. Additionally, investors from Italy, Lebanon, Egypt, Turkey, France, China and the UAE entered the top ten.

In general, foreign investors have invested more than $46 billion in various housing projects in the city. According to the DLD, 60,927 deals were completed in the first half of 2023, and there are no prerequisites for slowing down.

Both upscale residences and villas, as well as more affordable housing options, are in consistently great demand among foreign nationals. The construction sector is conducive to this. The number of brand-new residential projects soared by 135% in 2023.

The Key Drivers of Dubai’s Property Market

·      The influx of wealthy expats from all over the world;

·      A high ROI – the profitability of ordinary properties exceeds 6-8%;

·      No property taxes;

·      Transparent laws;

·      Various immigration programmes;

The demand for housing in the emirate has increased significantly. These are investors who desire to save and generate much more money, and people who plan to move to the country and are in search of ways to get a long-term visa.

For example, the emirate set two records in June in 2023: foreigners made 10,419 real estate transactions, which is 17.78% more than in the same period of 2022, and the value of deals grew by 34.1% exceeding $8.2 billion.

Top 10 Most Sought-after Communities

·      The Palm Jumeirah;

·      Burj Khalifa;

·      Dubai Harbour;

·      Dubai Creek Harbour;

·      Dubai Marina;

·      Dubai Design District;

·      Jumeirah Lakes Towers;

·      Dubai Hills;

·      Jumeirah Village Circle;

·      Umm Suqeim Third.

Which of these areas are most popular with investors from other countries?

Investors’ Favourite Localities

According to realtors, the communities from the above-mentioned list are the most in-demand among overseas customers: Dubai Marina, the Palm Jumeirah, JBR (Jumeirah Beach Residences), JLT (Jumeirah Lake Towers) and Dubai Hills.

They say that much depends on the buyer’s goals and budget. Many people prefer excellent districts with advanced infrastructure. For instance, JBR and Dubai Marina are in high demand among both holidaymakers and property hunters. Their major advantage is their close location to the beach, to the first line.

There are certain requirements that foreign investors most often put forward:

·      the location is close to the center and from the sea – 15-20 minutes away,

·      modern communities with all the necessary amenities, including parks, large shopping centers and various shops,

·      there are beauty salons, dental offices, kindergartens and schools.

Dubai Hills, JLT, JBR and Dubai Marina are well suited for these parameters.

Investors who are focused on generating income choose central areas or those that are actively developing. These are Business Bay, Meydan and Dubai Creek Harbour. There is a stable and expensive property for rent, which guarantees a good income.

Investors’ Favourite Properties

The most sought-after properties are one- or two-bedroom residences with all the necessary amenities. They are relatively affordable and great for renting. The demand for rental housing is really high throughout the city. The average yield is 6-8%.

If foreigners plan to move to the UAE and search for housing, they choose villas and townhouses. Anyone wishing to purchase a home for long-term residence prefers villas or large residences in communities with good infrastructure, expensive housing units, as well as developed communal structures and businesses. Families with children choose such areas as Greens, Arabian Ranches, Mirdif, Dubai Hills, Damac Hills and Emirates Hills.

Housing Prices in Dubai

Not only market experts but also statisticians are talking about the rise in prices amid growing demand for the emirate’s square meters. For example, real estate prices have increased for residential properties in both the more affordable and luxury segment.

DistrictThe average property priceThe average rental rate per yearAverage annual return
Dubai Marina$422,000$28,5906.8%
Palm Jumeirah$952,000$48,4605.1%
Jumeirah Beach Residence$844,000$32,6703.9%
Jumeirah Lake Towers$354,000$21,7806.2%
Dubai Hills$422,000$32,6707.7%
Business Bay$435,600$24,5005.6%

The average price of a one-bedroom studio with an area of 60-70 sq. m in Dubai Marina varies between $360,000-440,000. The price tag for similar housing options in brand-new complexes starts at $600,000. Apartment options of 60-70 sq. m are sold on average for $320,000-410,000 in Dubai Hills, a new green family area with developed infrastructure, access to Dubai Hills Mall and the British school. Three-bedroom townhouses with a total area of 210 sq. m and a land plot cost from $1.2 million.

Summing up, the UAE market has maintained attractive prices and provides higher returns than in most European countries. Today, you can get an income of up to 8%, which is a very high figure compared to what any European country can offer you.

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