Why has Dubai become the ideal place for real estate investments?

The dynamic real estate market of Dubai

Dubai is considered one of the fastest-growing cities on the international stage and is an active center for the real estate market. This unique destination offers vast opportunities for significant profits from buying and selling properties that are under construction. There are several factors in the Dubai real estate market that attract investors.

• Stable price growth, which can reach up to20%per year.
• Active construction of new facilities.
• Increased interest in residential properties, driven by population growth and an influx of affluent buyers.
• The variety of elite residential complexes and luxury apartments.

Options for housing in the real estate market

There are many housing options available today. For example, you can find75 objectsfor purchasing houses in Dubai at a price of around550,000 dollarsSpecial attention is drawn to the villa in the Umm Suqeim 3 area, which has two bedrooms and two bathrooms and is for sale for35 million dollars.

A unique villa with a private beach and pool is also available, located on six islands in the project.The World IslandsIts area is2136 square meters, and the plot —1393 square metersSuch luxury starts from2,950,000 dollars.

New residential complexes

Very soon, in2026.The construction of a new residential complex will be completed.Liv Luxin the areaDubai MarinaHe will offer his tenants a spa, a mini-golf course, and stunning panoramic views. Prices for apartments in this complex start at5,563,000 dollars.

An equally interesting option is elite apartments.The Sanctuaryin the areaNad Al ShebaTheir commissioning is also scheduled for2026, offering17 apartmentsat a price starting from3,001,000 dollars.

In2026.The completion of another closed complex is expected.South Bay 5located inDubai Southand offering1200 objectsThe starting price is2,329,000 dollars.

Projects in DubaiLand and MBR City

In the areaDubaiLandCurrently, large-scale projects are under construction.Athlonwhich include villas and townhouses with access to clubs, pools, and the beach. The completion of these properties is expected inin the year 2028.

It is also worth paying attention to villas and houses in an environmentally friendly area.MBR Citythat offer private pools and gardens with picturesque views of the lagoon and beach. Prices for such properties start at1,095,000 dollars, with the commissioning inin the year 2027.

New residential complex Bay Villas

Apartments are also available in the new residential complex.Bay Villas, which is located in close proximity to the beach and offers a marina for yachts.Dubai IslandsThe completion of construction is expected inin 2024, offering615 objectsfor sale.

International relations and investments

Dubai is an important aviation hub, providing easy access to many global metropolises. With its strategically advantageous location and convenient time zone, it effectively connects the East and the West.

In free economic zones, such asDubai International Financial CentreForeign investors can expect full ownership of real estate, repatriation of income, and favorable tax conditions, which creates excellent opportunities for investment.

Attractiveness for foreign investors

Moreover, Dubai's appeal to foreign investors has significantly increased due to its lenient immigration policies and favorable tax conditions. For example, Russian citizens wishing to purchase real estate worth more than1 million dirhamsApproximately273 thousand dollars), can take advantage of certain privileges when making transactions.

In Dubai, there is a unique opportunity to obtain a two-year residency visa that covers all family groups, including spouses and minor children. This visa can be renewed. One of the attractive factors of this city is the absence of value-added tax, property tax, and capital gains tax, which creates favorable conditions for investors, as noted by Elina Müller, a real estate specialist at Star Luxury Properties.

Growth of the Real Estate Market in Dubai

According to reports from Knight Frank, the real estate market in Dubai is showing remarkable performance.

• In 2012, housing prices increased by 19%, which allowed the city to take second place in the global ranking after Hong Kong.
• In the first quarter of 2013, a new record was set: property prices increased by 27% compared to the previous year.
• The quarterly growth was 12%.

Data from Reidin shows that from the first quarter of 2012 to the first quarter of 2013, apartment prices increased by 17%, while villa prices rose by 18%.

Dubai as a Real Estate Hub

As of today, Dubai holds an important position in the global context, with high prices per square meter. According to Knight Frank, luxury villas here are valued in the range of5,600to6,200dollars per square meter. Real estate from well-known developers is more expensive compared to less known projects.

For example:

• Armani apartments in the Burj Khalifa are selling for around14,500dollars per square meter.
• Regular apartments without designer finishes start at8,700to10,200dollars per square meter.

In the Dubai Creek area, it has been observed that the price of apartments at Palazzo Versace is120%exceeds the cost of standard apartments.

Investment Prospects

A favorable period for investing in real estate has arrived.2008by2011In recent years, the Dubai market has faced serious challenges: property prices dropped, and many projects were put on hold. However, over the past two years, there has been a positive trend in prices, which reduces the risks of losses when selling properties.

After the crisis2008In recent years, many projects have been reactivated, contributing to the recovery of the real estate sector. It is not surprising that, in the context of economic instability in the Eurozone, interest from investors in the Dubai market is growing. Among buyers, Russians are coming to the forefront, ranking just behind citizens of India, the United Kingdom, and Pakistan in terms of the number of transactions.

Forecasts for the Future

According to Knight Frank's forecasts, in2013In 2023, Dubai, along with Moscow and Miami, will remain one of the leaders in housing price growth. It is expected that this year, the prices for luxury villas will increase by5–10%For example, someone who bought a house for1 milliondollars in December2012years, upon completion2013will be able to earn a minimum of50 thousanddollars from the difference between the purchase price and the subsequent sale.

Construction Sector

When it comes to the construction industry, Dubai is showing incredible development rates: new skyscrapers and unique buildings are being erected every week. This largest city in the United Arab Emirates is famous for its architecture, which is hard not to admire.

• The tallest building in the world, the Burj Khalifa, has already been built here.
• The largest shopping mall is Dubai Mall.

The development of Dubai and its attractiveness

The authorities in Dubai are actively planning to continue the development of the region, and they have no intention of stopping at what has already been achieved. In the coming years, the likelihood of investors losing interest in this city seems very low.

Plans for the construction of residential buildings

According to the companyJones Lang LaSalleFrom 2013 to 2015, the completion of 42,000 new residential units is planned in Dubai. In 2013, 28,000 new apartments and houses will enter the market, confirming the active growth of the real estate market in this region.

Large projects in the implementation stage

Among the major projects currently in progress, the following can be highlighted:

• 29 Boulevard Towers in the city center;
• Balqis Residences on the artificial island of Palm Jumeirah;
• Centrium Project in the International Media Production Zone (IMPZ);
• Silicon Gate in the Dubai Silicon Oasis area;
• Infinity Tower and Marsa Tower in Dubai Marina.

Megacity Mohammed Bin Rashid City

Local authorities have planned numerous grand initiatives to attract tourists and real estate buyers, which, in turn, will contribute to rising housing prices and increased interest from investors. One of the most ambitious projects is the creation of a megacity.Mohammed Bin Rashid City (MBR City)that will be built in the undeveloped areas of Dubai. This project is expected to be completed by 2030.

Mall of the World shopping center

Nevertheless, investors can already participate in the creation of a global trade center.Mall of the World, which will become the largest in the world, surpassing the famous one.Dubai MallThe construction of more than a hundred hotels, a theme park, and other infrastructure facilities is also planned, which will be an important contribution to the region's economy.

Population growth and its impact on market unity

In Dubai, 15% to 25% of all cranes in the world are concentrated, which is linked to the rapid population growth of the city, increasing by 10,000 people every month. Even with the completion of all major projects, a surplus of supply in the market is not expected.

Expert opinion

In an interview with the agencyZawyaDavid Macadam, who holds the position of Head of Sales for the Middle Eastern region.Jones Lang LaSalle, noted:“The trend of migration to Dubai is steadily increasing, along with the influx of tourists, which is leading to a sharp rise in the population. That is why all these projects will be completed and will prove to be quite competitive.”

Bluewaters Project

Another significant project —Bluewaterswhich is a mixed-use project worth 1.62 billion dollars. The client is a companyMeraasIt will be located in the area.Jumeirah Beach ResidenceIt will include a grand Ferris wheel costing 270 million dollars, hotels, as well as residential, office, and entertainment spaces. Construction began in April 2013.

Damac Towers by Paramount project

CompanyDamac Propertiesstarted the implementation of the projectDamac Towers by Paramount, which will be built in the city center. In partnership withParamount Hotels & ResortsFour skyscrapers are being built here, featuring 540 hotel rooms and over 1,400 serviced apartments. Prices for housing will start at $545,000, and the project is expected to be completed by the end of 2015.

Plans of Dubai Properties Group

DeveloperDubai Properties GroupIt is also developing ambitious plans to change the appearance of the area.Dubai LandThe company is preparing to build several new complexes, such as:

• Al Waha;
• Mudon;
• Remraam;
• The Villa.

In the business districtBusiness BayThe construction of complexes is planned.Bay Squarewhere housing prices will start at 295 thousand dollars. These initiatives are aimed at creating a comfortable and convenient urban environment for residents and visitors of Dubai.

The cost of real estate in Dubai

In Dubai, there is an opportunity to purchase a small apartment starting at 44 thousand dollars.

Consideration of factors when choosing real estate

When choosing real estate for the purpose of resale, it is important to consider several factors, among which additional amenities in the building hold significant importance.Location of the objectis undoubtedly a key aspect of its liquidity. HoweverinfrastructureBoth the complex itself and its surroundings are of equal importance. The presence of amenities such as a swimming pool, gym, and café provides a significant competitive advantage.

The speed of real estate resale

Real estate resale can happen quite quickly. In Dubai, it is possible to resell an apartment even if you have not yet received the title deed. You just need to sign a sales contract and obtain a certificate from the system.Oqoodintended for the registration of construction companies. This important document can be requested directly from the developer.

Investment prospects

Artem Pustovar explains that his company is engaged in the resale of apartments, even if the transfer of ownership from the previous owner to the new one has not yet taken place. A potential buyer can be found in just a few weeks. According to him, if you wait for 2-3 months, there is a possibility to earn from10% to 15%Profits. Real estate prices in Dubai are rising quite rapidly, making resale almost possible immediately after purchase.

Capitalization assessment

Elina Müller emphasizes that for an adequate assessment of capitalization, it is important to understand at what stage of construction the investments were made. The earlier you acquired the property, for example, at the zero cycle stage, the higher the capital appreciation percentage is likely to be. Of course, it is impossible to provide a single figure, as this depends on:

• locations
• like real estate
• infrastructure
• many other factors

Nevertheless, when it comes to early-stage purchases, one can expect a growth of about that will occur upon completion of construction.30%For the most expensive complexes developed in collaboration with well-known brands, such asFendiorParamount PicturesThe capital gain can reach40%.

Construction timelines

It is worth noting that the construction period for projects usually lasts no less than18 monthsThis period can be considered optimal for investors who do not wish to wait long but intend to achieve significant profits.

Safety of purchasing during the construction phase

The issue of the reliability of purchasing real estate during the construction phase in Dubai should be considered carefully. Generally, if established standards are followed, the process of buying property before its completion is not associated with significant risks. Moreover, there is a law in Dubai that protects the interests of investors. According to this legislation:

• The money invested by the buyer in the new property is held in an escrow account.
• The client is prohibited from withdrawing funds in an amount exceeding the required sum at the current stage of construction.

Thus, thanks to the existing legal guarantees, purchasing real estate in Dubai during the construction phase becomes a safer and more calculated step for investors.

Conclusion

Undoubtedly, Dubai presents a unique opportunity for investors looking to create or expand their real estate portfolio. Each year, the city becomes increasingly attractive due to the rapid rise in prices, modern projects, and dynamic infrastructure development. By applying innovative technologies and focusing on the needs of buyers, the real estate market here offers incredible prospects for capital growth.

I observe how Dubai attracts not only traditional investors but also those looking for new opportunities after crises in other regions.Attractive tax conditions,absence of ownership restrictions for foreignersandfavorable migration policy— all of this creates the perfect conditions to start or expand a business. The reliability and potential of the market leave me with no doubts: now is the best time to invest in real estate in this urban oasis.

Prospects of the real estate market

With each passing year, Dubai reaffirms its status as one of the fastest-growing cities in the world and a leader in the real estate sector. Investors who consciously choose this direction are discovering a wide range of opportunities:

• studios
• luxurious villas
• commercial real estate
• luxurious residential complexes

Moreover, unique projects such as residential complexes with their own lakes and beaches continue to shape a new reality of life in Dubai.

Market dynamics

I believe that there are even more achievements on the horizon. Dubai not only builds stunning buildings but also creates a sustainable economy that attracts international investments year after year. In this city, it is becoming increasingly easier to realize your dreams, whether it's starting a new business or buying a home to live in. While other markets face challenges, Dubai continues to rise.

Recommendations for potential investors

So, if you haven't made a decision about investing in real estate in Dubai yet, I strongly recommend doing it as soon as possible. Times are unpredictable, but investing in this dynamic and attractive place will definitely meet your expectations. Russians, like many other foreign investors, continue to hold strong positions in this market, and I have no doubt that this trend will only strengthen.

We are on the brink of a new era in the real estate world, and Dubai is just the beginning.