Types and benefits of investing in Dubai
Dubai has been one of the top destinations in the world for many years in a row. The emirate occupies top positions in tourism, for expatriates, in terms of economy state and development, innovation, standard of living, income and, of course, investment. Dubai offers investors many advantages not available in other countries. Let's bring some of the main benefits of investing in Dubai Real Estate.
Why you should invest in Dubai Real Estate
- Investment in real estate is tax-free and after buying an apartment in Dubai you will not have to pay additional taxes in the future.
- Dubai is one of the most affordable places in the world to own a premium property and offers prices per square meter, lower than in many other cities.
- By owning property in Dubai, you will be able to earn high rental income. The rental yield here reaches up to 10% per year, which is much higher compared to cities like London, Hong Kong, New York, etc.
- By investing in Dubai Real Estate worth more than AED 750,000, foreign investors can expect to receive a long-term resident visa, which indicates the high level of trust that Dubai has for potential investors.
- Dubai is in the top 10 safest places in the world, has a low crime rate and an effective legal system aimed at ensuring guaranteed security all its residents and guests.
- Dubai has Freehold Zones where foreign investors can buy, sell, rent or live in a property that may be passed on by inheritance.
- As one of the top travel destinations in the world, Dubai is considered a perfect place for foreign direct investment in the real estate sector with high profitability investment and growth rates.
- No taxes, favorable payment plans, 0% installment for several years, the ability to execute a deal remotely, a stable increase in prices in the real estate market - all of this attracts investors to buy apartments or other properties in Dubai as an investment.
Types of real estate investment in Dubai
- Purchase of real estate at the initial stage and its sale after completion of construction. This is the most common way that requires market analysis and the right choice of the investment property.
- Purchase of real estate for the purpose of renting out. Rental income: from 7% per year after deducting costs.
- Investments in hotel/service projects.
- Purchase of commercial real estate (shops, offices, restaurants, etc.) for rent or for resale in the future.
- Flipping - purchase of an apartment on the secondary market, subsequent repair and resale with
margin.
- Renovation. Includes many concepts: it can be a small repair, major renovation and complete liquidation of the old facility with the commissioning of a new one. However combines all types of renovation to improve the quality characteristics of the property.
Investment case
Ekaterina Rumyantseva, Founder & CEO of Kalinka Ecosystem, frequently shares her investment journeys in her Telegram channel. Here is one of them:
“Dubai is certainly a city of opportunity, including financial ones. I'll tell you how installment plan works and how you can earn more than the average price increase in the market.
Last summer I bought a 2 bedroom apartment at St.Regis Residences – a branded project from a well-established Dubai developer, Emaar Properties, of the world famous hotel brand St. Regis Hotels & Resorts. It is still under construction, with handover scheduled for 2026.
Let`s get to the numbers - last summer the property price was AED 3.8 million with a down payment of 30%. During this period, the price increased by 18%. Due to the fact that the project does not freeze 100% funds, my return on investment is higher than the growth in value - approximately 60%. This is the effect of the so-called "leverage". Increase in the value concluded AED 684 thousand. Capital invested - AED 1.14 million
When the facility is handovered, I will rent it out for a long term, which will consistently bring 7% yearly. If rented out for a short-term lease, such property will bring 10% per annum.”
If you are interested in investments and want to receive unique and exclusive offers, please contact Kalinka Ecosystem.
Our experts will always help you decide on an investment strategy and find the best properties to suit your goals and budget. Also, advise you on any issue related to business, real estate and relocation in the UAE, and will provide support at any stage.
