Reasons to invest into real property in the UAE

Let us answer the following two questions: Why has investing in the UAE real estate become so popular? And: What is the best property in the country to purchase?

недвижимость Арабских Эмиратов

The United Arab Emirates and the Emirate of Dubai in particular are at the top of the lists of attractive investment destinations. The major reason for that is the stability of the state and its wonderful perspectives for further economic growth. According to the statistics, over fifty percent of large investors wish to put money only in the economically strong and stable regions of the world.

At the current moment, the most profitable investments can be made in the following sectors of the UAE economy:

  • Commercial and residential estates;
  • High-tech IT projects;
  • Existing business companies.

Why is investing into real estate in the UAE so popular?

A complex answer has to be given to this question.

Active development of the real estate market in the UAE

The UAE real property market is developing steadily. Over the last ten to fifteen years, construction has been going on perpetually in the country. New high-rise buildings are erected, new trade and entertainment complexes are constructed, new islands are created in order to put buildings there, new business agglomerations appear… The number is business people who register companies in the UAE as well as the number of those who find jobs in the country is increasing year after year. Besides, the UAE is currently witnessing a true construction boom as EXPO 2020 is approaching. According to some analysts, the number of people who are going to attend the exhibition may reach 25 million. Investors from over 140 countries of the world put money into real estate in Dubai.   

State control of the purchase deals and minimal risks for buyers and sellers

Another reason why so many foreign nationals like to invest into real property in the UAE is the security of making the deals. Every real property (both commercial and residential) purchase deal is made strictly via an agent who is licensed by the Dubai Land Department. All the purchase agreements are uniform and all of them are subject to the state registration.

Full property rights

The third reason is the possibility to obtain the full ownership right for the property that you purchase in the UAE. In 2002, the Government of the country passed a regulation that permits foreign nationals to buy property in the so-called “Freehold Zones” and enjoy the same property rights as local residents do. Even if he or she comes from a foreign country, the property owner in the UAE is free to sell it, let it on a lease, pass it on to his or her heirs, or use it as a gift to somebody.  

Real property prices in Dubai

Today the average price of real estate in Dubai is around US 3,400 per a square meter (which is nearly 11 sq. ft.). This is much less expensive than the cost of the property in European, Asian, or American megalopolises. Besides, investment into real estate in the UAE can bring a sizable profit of 10% a year or more.  

What is the best UAE property to invest in?

Both commercial and residential estate can become the investment object in the UAE. However, you have to bear in mind that there are some risks associated with buying residential property in the country:

  • You have to analyze the market carefully before you purchase an apartment or a suite in Dubai. If you purchase one in an unpopular district, you may have problems finding the renters.
  • Property maintenance is also difficult if you want to do it from outside the UAE. Many questions related to this matter require the owner’s personal presence in the country.

If you intend to earn money by investing into real property in the UAE, you had better consider buying some commercial estate there. You can make an agreement with a management company and it will look after your property while you are away from the country. The income is going to be a bit lower but in this way you will solve 99% of the property maintenance questions.

Not only trade and office buildings can be considered for investment into commercial property in the UAE. Many people also buy hotel suites. This is a convenient option because you can stay in the suite on your visits to the UAE without having to pay the hotel: it is yours. At the same time, you can let other people stay in your suite when you are not in the country thus receiving some profit.

A great number of investors buy office spaces in the UAE. These spaces are always in high demand and it is possible to sign a long-term rent agreement with a business company and obtain some stable passive income. Office spaces in class A and class B business centers are capable of bringing the largest profit. As a rule, their liquidity is between 7% and 9% per year. In some cases, it can be as high as 10% to 14%.

If you would like to purchase commercial or residential property in the United Arab Emirates, please apply for our assistance in this matter by writing to [email protected]. We can help you not only with buying real estate in the country but also with emigrating to the UAE, obtaining a visa to the country, opening a bank account there, and setting up a business company too. Please trust us to solve your tasks thus saving your own time and money.