Why has Dubai become a new hub for investors and immigrants?

Growing interest in real estate in the UAE

In recent years, there has been a significant increase in interest in the real estate market in the United Arab Emirates. Yulia Titova, who has many years of experience in this field, notes that although her company started operations in Dubai 15 years ago, real attention to this region has only emerged in the last three years. Notable changes have occurred against the backdrop of global events that have seriously impacted the market situation.

Relocation and its significance

Speaking about Dubai and the relocation process, it's worth mentioning that the term“relocation”has become particularly relevant today. This term reflects modern migration trends, which adds to the appeal of the Emirates. There are several key points regarding entry into the country:

• Citizens of certain countries can visit the UAE without a visa for up to 90 days.
• If foreign citizens purchase ready-made real estate for an amount starting from 205 thousand dollars, they can obtain a resident visa, which is valid for a period ranging from six months to three years.
• With an increase in the amount of investment, the validity period of the resident visa can reach a full ten years.

Advantages of a resident visa

The simplest option is to obtain a visa that is valid for two years. Holders of resident visas enjoy numerous benefits, including:

• The possibility of long-term residence in the UAE;
• Convenience of entering and exiting the country;
• There is no need for permanent residence;
• Opening a bank account and access to loans;
• Tax resident status;
• The possibility of doing business in the Emirates.
• Official employment in local companies;
• Education for children in local educational institutions;
• Obtaining higher education at universities;
• Access to medical services and health insurance;
• Obtaining a driver's license;
• The possibility of applying for a Schengen visa and a US visa.

Restrictions for residents

It is important to emphasize that even holders of resident visas do not have access to free medical and educational services, which are provided only to citizens of the country, and obtaining a UAE passport is only possible in exceptional circumstances.

Investing in real estate

When it comes to investing in real estate, it's important to remember that this is just one of the reasons for making investments. The past three years, especially 2022, have shown the instability of the global economy. Against the backdrop of fluctuations in the financial market and restrictions on transactions within the country, many have started looking for new ways to invest their funds.

This has affected Russians, who have faced difficulties in making payments in European countries, forcing them to look for alternative investment options.

Conclusion

I can't hide the fact that I have a rather critical view of investment schemes; however, Dubai sparks my keen interest due to its rapidly developing market situation and the numerous opportunities it offers to investors. As a result, among all the countries that attract attention, the UAE holds a special place because of its appealing conditions for investment and migration.

Throughout this period, the region has demonstrated a consistent and high level of income generated from real estate rentals. Unlike the largest cities in the world, such as New York, London, Singapore, and Hong Kong, where rental yields fluctuate between 3-4%, in Dubai this figure is at least 6%. Moreover, population growth is significant, further confirming Dubai's reputation as one of the fastest-growing cities on the planet: over the past forty years, the population has increased tenfold.

In 2017, this figure reached 3 million, with expatriates from 190 countries already living in the city at that time. By early 2022, the population exceeded 3.5 million, and forecasts suggest that by 2040, Dubai could have around 6 million residents. This also implies the need for the construction of new residential complexes, the formation of an active rental market, and the development of infrastructure.

Geographical location and transport accessibility

Another significant point is that Dubai is located eight hours of flight away from 70% of the major international destinations. In 2017, the local airport served 85 million passengers, thus maintaining its status as the busiest airport in the world for eight consecutive years. The year 2022 will mark the ninth year in a row for this achievement.

Undoubtedly, among the arriving people, there are both transit passengers and tourists; however, the majority of them come for business purposes. Major international companies, as well as small and medium-sized enterprises, are establishing their offices in Dubai, and in recent years, there has been a significant influx of citizens from the Russian Federation.

Changes in global priorities

For the third year in a row, we have been hearing the claim that the world will change forever. And now we have no doubts about its truth. Despite our attachment to Europe and America as familiar destinations for leisure, study, and business activities, global changes are necessitating a reassessment of priorities. Analyzing the foreignreal estate market, one can see that Dubai has become an important hub for many investors.

Comparison of real estate prices in different cities

Let's take a look at the prices of luxury real estate in the most famous cities around the world. How many square meters can be purchased with a budget of one million dollars?

• In cities like Monaco, Hong Kong, New York, London, Singapore, Los Angeles, Geneva, and Paris, this figure reaches only 50 square meters.
• In cities like Sydney, Shanghai, Tokyo, Berlin, Miami, and Melbourne, you can buy between 50 to 100 square meters for that amount of money.
• In Dubai, you can buy more than 100 square meters.

This clearly demonstrates that the cost of one square meter in the premium segment in Dubai is 300-500% lower than in the largest cities in the world.

Activity in the real estate market

Every month in Dubai, there are between 6,000 to 9,000 real estate transactions. This high level of activity in the market began in preparation for the international exhibition "Expo," and its pace did not slow down in 2022.

In 2021, the volume of real estate sales increased by 80%, while the number of transactions doubled. The average transaction value was around 700-800 thousand dollars, which can be attributed to the variety of offerings. In Dubai, you can find an apartment priced at just 100 thousand dollars.

Real estate market overview

In the real estate sector, there is a wide range of prices, ranging from $300,000 to $500,000, but there are also transactions in the millions, indicating the presence of a premium segment. For example, in Dubai, you can find an impressive penthouse that costs2,539,260 eurosIts area reaches270 square metersand it is located on Palm Jumeirah — one of the most prestigious locations in the city.

Residential complex on Palm Jumeirah

This new residential complex will be the first hotel in the United Arab Emirates to offer exclusive residences. Future property owners will have access to a wide range of hotel amenities, including:

• a modernly equipped gym;
• squash court;
• spa center;
• library.

Stylish Cavalli apartments

Luxurious apartments are also offered in Dubai at a price of3,484,198 euroswith a total area299 square metersThese apartments are designed in the unique style of the renowned brand Cavalli, which is famous for its exquisite aesthetics and unconventional approaches. Bold design solutions, known from the fashion world, have found their application in interior design, and Cavalli offers collections of furniture and decor that can impress even the most discerning clients.

Available offers

Among the available offers, there are apartments for165,520 euroswith an area38 square metersWhen purchasing such real estate, potential owners can obtain residency and also take advantage of an attractive promotion:

• The developer takes on the payment of the property transfer tax in the amount of4%when purchasing ready-made apartments;
• 33-story residential complexes are available for purchase in the Damac Hills area, offering studios and one or two-bedroom apartments starting at a price.180,000 eurosfor the studio.

Investment opportunities

An interesting investment opportunity is represented by apartments with an area of70 square meters, at a cost of415,639 eurosThe opportunity to obtain a residence permit through a remote purchase is also available. How to choose the most profitable investment offer in Dubai? One of the major projects that will attract global attention due to its unique location and stunning views. It is expected that during the construction phase, the value of this property will increase significantly, as a flexible payment scheme has been offered. Investors will be able to exit deals and secure their profits at a time that is convenient for them.

Exclusive villas

It is also worth paying attention to exclusive villas, the price of which is1,471,290 eurosfor377 square metersThis is a very unique offering, created with the involvement of the famous artist Gustav Klimt. The exterior design is executed by the jewelry house De Grisogono, while the interior is done by the company Cavalli, ensuring style and luxury in every detail. Intricate patterns inspired by nature, combined with black rubies and gold, give this project an extraordinary appeal.

Ready apartments in Dubai Creek Harbour

In addition, there are ready-to-move-in apartments for sale.315,408 euroswith one bedroom and an area64 square metersLocated in the Dubai Creek Harbour area, this neighborhood features well-developed infrastructure, including a swimming pool and gym, and the apartment's price includes a parking space for the added convenience of residents.

Amenities for local residents

Residents of this area are offered a variety of amenities, including spacious outdoor pools and cozy relaxation areas by the water. Guests have access to an open terrace on the podium, surrounded by greenery. A playground for children has also been created, adding a fun atmosphere and ensuring safety for young visitors.

Purchase options

As for purchasing power,297,017 €You can purchase comfortable apartments in Dubai, UAE, with a total area of 63 m² and one bedroom, located on the first line by the park. The infrastructure of this residential complex includes:

• pool;
• modern gym
• lobby with concierge services.

The price includes a parking space, which makes the offer even more attractive. The booking conditions require a payment of 25% of the total cost of the property, plus a 4% land tax, while the remaining 75% should be paid upon receiving the keys. It is important to note that this area is already fully developed and offers a rich infrastructure, including parks, shops, playgrounds, and restaurants, for example, in Dubai Hills Estate.

Family apartments

The price of the apartments is188,509 €for housing in Dubai, UAE, with a total area of 63 m². It is worth noting that Town Square is a neighborhood that is great for families, offering high-quality services and amenities. Among them, we can highlight:

• children's pools;
• modern fitness gyms;
• treadmills.

Town Square will also be handed over to those who prefer a calm pace of life in a well-equipped environment.

Modern apartments

In addition, apartments are offered in Dubai at a price of137,933 €with a total area of 60 m². These modern and fully furnished apartments are located just a minute's walk from the metro station and two minutes from the Discovery Gardens pavilion. Major shopping centers like Ibn Battuta Mall and Dubai Marina can be reached in just a few minutes. Prices for studios start at560,000 UAE dirhamsthat makes them accessible to a wide range of buyers.

Investment opportunities

The price in184,831 €This refers to apartments in Dubai with an area of 38 m². Acquiring such housing opens up opportunities for obtaining a residence visa and allows for remote transactions. The complex is a 22-story building located in one of the city's modern business centers — Business Bay. This location is known for its dynamic atmosphere and high standard of living, which attracts entrepreneurs. Its convenient location near the emirate's center and Sheikh Zayed Road provides comfortable living conditions.

Spacious villas

Apartments are also available at a price of315,408 €with an area of 65 m² and two bedrooms.

Unique real estate offers in Dubai

In Dubai, United Arab Emirates, there are many impressive real estate options that can attract the attention of not only investors but also those who are eager for a change in their lives.

House in a prestigious neighborhood

One of the most interesting properties is a house with an area of 212 square meters, offered for 429,433 euros. When purchasing this property, there is an option to arrange...residence permitThe transaction process can be carried out remotely.

This property is located in the prestigious Damac Hills 2 area, where residents can enjoy exclusive amenities. This unique community features five separate neighborhoods, each offering its own distinctive services and entertainment options.

• Surfing simulator
• Water park for kids
• Ski river
• Floating cinema

Cottage with outstanding amenities

A cottage with an area of 219 square meters is also available on the real estate market, priced at 459,778 euros. Like the previous property, it offers the opportunity to obtain a residence permit, and the transaction process can be completed remotely.

Residents of this cottage will have access to the vibrant amenities of Damac Hills 2, which offer a variety of opportunities for outdoor activities.

• Sports grounds
• Entertainment areas
• Places for relaxation

Apartment in Jumeirah 1

There are other attractive investment options, such as a cozy apartment with an area of 74 square meters priced at 500,239 euros. This property is located in the Jumeirah 1 area and is ready for occupancy – a 50% payment can be made in December 2024.

The surroundings of this residential complex are abundant with green parks, a beach with a promenade, as well as famous resorts, restaurants, and shops. The presence of playgrounds and yacht docks makes this place ideal for family living or for those seeking relaxation.

New apartment in Damac Hills

Investing in a new apartment with an area of 45 square meters for 151,727 euros can also be a successful move for those looking to acquire housing in sought-after complexes. This property is located in the well-developed area of Damac Hills, which delights residents with green parks and gardens, as well as the opportunity to become a member of the Trump International Golf Club.

Luxurious villa for discerning buyers

For more discerning buyers, a magnificent villa is offered at a price of 720,932 euros. This spacious property covers 350 square meters and includes six bedrooms and three floors.

Each villa can be adapted to meet the owner's needs, whether it's an office, a game room, or a library. It also includes:

• Garages
• Private pools
• Gyms
• Yoga spaces
• Jacuzzi

New construction project

It should also be noted that the cottage being built, priced at 458,858 euros, will offer new Italian-style housing with an area of 218 square meters. This project is inspired by the beauty of Verona and includes various townhouses with four bedrooms.

Extensive landscaped gardens between the buildings, featuring magnolias and shrubs, will create an atmosphere of a true Mediterranean resort, which will positively impact the overall value of these properties.

Prospects in the real estate market

Over time, interest in real estate in Dubai continues to grow, and such offers present a wonderful opportunity for profitable investments. Each of the properties presented has unique features, making them appealing for both personal living and subsequent rental.

These features create optimal conditions for future owners looking to invest their funds in promising properties that could soon guarantee high returns.

Real estate in Dubai

In the heart of Dubai, located in the United Arab Emirates, there are numerous real estate options available. For example, you can buy a 68 square meter apartment for €450,582. This one-bedroom accommodation is fully furnished and situated just a few minutes' walk from the beach. As for financing,40%The full amount will need to be paid upon completion of the construction, which is expected in January.2026It is forecasted that the value of this apartment will increase by30%This property is located in the areaDubai Islandslocated in Deira and consists of five islands:Marina,Central,Shore,GolfandElite, with a total area of17 square kilometers.

Options for apartments

Another option is a different apartment in Dubai, which costs294,258 euros, with an area64 square metersThis property also includes one bedroom and is located in a current residential complex with developed infrastructure. In this case, an installment payment option is available, and an annual increase in value is expected at the level of7%. AreaDamac Hillscovers390 hectaresand includes both residential and commercial real estate. This project was launched inin 2013And in a relatively short time, we managed to implement numerous housing options from a well-known developer.Damac Properties.

Myths about real estate in Dubai

There are also myths about the emirate that need to be debunked. For example, a common misconception is that real estate in Dubai only pertains to new housing. However, as statistics from the land committee show, there is a balance between the primary and secondary markets, with secondary housing accounting for60%From the total number of transactions. Primary housing refers to the purchase of real estate directly from the developer, including both completed and under-construction properties. Secondary housing includes all options that are resold, regardless of their age and condition.

Stereotypes about the real estate market

Another stereotype is the belief that all real estate in Dubai is only related to new construction. Although most transactions do indeed occur at the construction stage, purchasing already completed housing is quite justified. There are risks, especially when dealing with older apartments in less popular areas, but the market can offer many new properties in attractive locations, such asBusiness Bayin close proximity toBurj Khalifaat reasonable prices. These properties have a high chance of being rented out for a long term.

Investment opportunities in Dubai

It's interesting to note the variety of investment opportunities available in Dubai. Many investors choose to invest the funds obtained from selling real estate in Moscow in order to:

• to receive a stable income in foreign currency from rent;
• minimize your involvement in the process.

At the same time, investing in hotel rooms for rental income may be less profitable than purchasing residential apartments. Many investors seek to distance themselves as much as possible from rental-related tasks and hope for stable income from their investments, choosing the most suitable strategies to achieve their financial goals.

In the current conditions, it is worth considering the possibility of investing in hotel rooms, which can provide a stable income of 8%. This option requires minimal involvement from the investor in managing the asset, but it should be noted that the liquidity of such an investment in the future may be lower than that of residential real estate.

Speculative strategies for rapid capital growth

For those looking to quickly increase their capital, a speculative method is suitable: purchasing real estate at the start of sales in sought-after projects and then selling it after a few months. This strategy has the potential to yield high profits, ranging from 20% to 50% annually, but it certainly involves certain risks associated with the specifics of the construction process.

Taxation in the Dubai real estate market

There is a common misconception that property in Dubai is completely tax-free. This is indeed true, but with some nuances. The zero tax rate applies only to one property that belongs to the owner and is used for personal purposes.

• When purchasing multiple properties for the purpose of resale, starting from June 1, 2023, investors are required to pay an income tax of 9% if their income exceeds $102,000.
• If an investor does not plan to reside permanently in the United Arab Emirates and does not become a tax resident of the country, their income will be taxed according to the laws of their home country.
• However, if we are talking about a single apartment intended for residence, the tax obligations may not be as significant.

Disadvantages of the Dubai real estate market

Another common myth is related to the misunderstanding of the real estate market in Dubai, which is often associated solely with high-rise buildings. Experts from the Dubai Land Department note that the main activity in the real estate market is concentrated in the segment of multi-family housing.

If we analyze customer inquiries, it becomes clear that new residential construction generates the most interest among buyers. Mentions of Dubai often evoke images associated with iconic landmarks like the Burj Khalifa and areas filled with skyscrapers, such as Business Bay.

The market for townhouses and villas

Nevertheless, a deep market analysis shows that there is high activity in the townhouse and villa segments. It is worth noting that interest in these types of properties is growing, which is driving up prices. Over the past year, there has been a sharp increase in prices specifically for townhouses and villas.

• The demand for these properties significantly exceeds the supply, and they are becoming increasingly sought after in the rental market.
• The price per square meter in high-rise buildings is higher than in townhouses and villas; however, this trend is observed almost everywhere in the world.

Therefore, the situation in the Dubai real estate market requires a careful and cautious approach when making investment decisions to protect oneself from potential risks and achieve optimal profit.

Conclusion

In conclusion to my thoughts on the real estate market in Dubai, I want to emphasize that it is the current realities of the world that have led to a renewed interest in this region. When I first started exploring this issue, I thought that renting or buying property in the Emirates was purely a matter of practicality and calculation. However, over time I realized that behind every financial decision lies a desire for people to secure stability in the face of global changes.

For me, Dubai has become a symbol of a new era — an era wheresecurity,availabilityandopportunity for growthThey are important factors. Thanks to the comfortable conditions for immigrants provided by Emirati real estate, many have already managed to appreciate its advantages. Yes, like many others, I am a bit skeptical about investments; however, the fact remains: stable rental income, population growth, and developing infrastructure make Dubai an attractive place for investment.

Advantages of real estate in Dubai:

• Relatively low real estate prices.
• High rental income.
• Rapidly growing population.
• Developing infrastructure.

Comparing real estate prices, I see how Dubai can offer a lot for relatively little money, especially considering the standard of living and comfort. Our usual perceptions of expensive megacities in the West seem outdated, and Dubai clearly demonstrates this.

I believe that new horizons are opening up before us. Now, more than ever, we need to adapt to changing conditions and seek successful strategies. No matter how the world changes, Dubai seems ready to show how to build the future based on principles.opennessandinnovationUltimately, if you are looking for opportunities, Dubai offers them in abundance — both financial and cultural, as well as social. That’s why this region continues to be in the spotlight and attract attention from all over the world.