Why has buying real estate in Dubai become a trend among investors?

Attracting investment in Dubai real estate

Recently, the real estate market in Dubai has ceased to be exclusive only to wealthy citizens. This dynamically developing metropolis offers not only elite housing options but also more affordable properties, with prices comparable to those in major European cities. Alexey Slavuta, the manager of the agency "Address Property," shared useful information about the current market situation, as well as key points that will be of interest to both newcomers and experienced investors.

Continuous development and taxes

Construction in Dubai never stops for a moment. The city holds strong positions as one of the most important financial and tourist centers in the UAE, and the implementation of a favorable tax system creates an attractive environment for investors from around the world. Investing in real estate here has long become a popular channel for capital placement. However, novice investors may have questions: how to choose the right property and where to seek qualified assistance?

Interest from foreign investors

Since the beginning of 2021, there has been a sharp increase in interest in real estate in Dubai. This growth has primarily been driven by Russians and Europeans who have been active in the investment sector since 2020. One of the key factors contributing to this trend has been the improved living conditions during the pandemic, as well as the rapid development of the real estate market that can be observed everywhere. In mid-2021, a real sales boom began in both the primary and secondary markets.

New projects and technologies

Every month, new modern projects are emerging in Dubai, characterized by a high degree of technology and comfort, which significantly fuels buyer interest. According to statistical data, in February 2022, approximately 3,000 new properties in the primary market were registered, with a total value of around 2 billion dollars. Interestingly, among the new properties, townhouses dominate, while the share of apartments is only 36.8%.

Competition and purchasing strategy

This trend highlights thatspeed of decision-makingis crucial to a successful real estate purchase in Dubai. Competition in the market is increasing and those who respond quickly to offers are more likely to be in a winning situation. It is important to realize that choosing the right property requires thoughtful analysis and it is advisable to have a professional to support you in this process.

Global interest in the real estate market

Currently, Dubai offers a wide range of housing options, and there is strong interest in this market from an international audience, including the USA, Canada, China, and European countries, all of which are looking to make their investments as profitable as possible. This confirms that the real estate market in Dubai is becoming increasingly accessible to a broader audience.

Tips for beginners

Newbies should take the time to research the market to avoid common mistakes and find the best deals for themselves.

Prospects for investing in Dubai

Thus, Dubai is gradually transforming into a significant player in the real estate market, attracting not only wealthy individuals but also anyone looking to secure their financial well-being through reliable investments. In this context, smart investments in real estate can be the key to financial success, as the city continues to draw more and more investors seeking new horizons for growth and development.

At a certain point, purchasing real estate in Dubai becomes not just a desire, but a pressing necessity for many investors. By the end of 2021, despite the ongoing construction in the city, there is a clear excess of demand over supply. This situation creates a unique market known as a "seller's market." The current year only intensifies the existing conditions in the Dubai real estate market.

For example, Russian investors have almost no countries or cities left where they can legally purchase real estate or open a correspondent account for financing. We see that in Western countries, such as the USA and European states, the assets and properties of Russian citizens are being frozen, while in Dubai the opposite is happening, and the situation looks more favorable.

Opportunities for Russians

In addition, my company continues to offer Russians the opportunity to open a correspondent account with one of the leading banks in Dubai, and this can even be done remotely. This solution allows for the preservation of funds after selling real estate, for example, in European countries or in cases where there is a need for urgent capital withdrawal.

Nevertheless, one of the most reliable methods for Russians to preserve and grow their capital remains the purchase of real estate in Dubai. This is why citizens who have the opportunity are actively investing their funds in the "concrete gold" of this region.

Interest from European investors

There is a specialized interest in real estate in Dubai not only among Russian representatives but also among investors from Europe, who are also showing significant activity. The main reason is that Dubai is becoming almost the only country where one can effectively preserve their financial assets.

Last year, Europe's central bank took a number of steps to encourage investment among the population, which in turn made it possible to hold up to 100,000 euros in their accounts without any obstacles. In the European context, deposits are becoming less and less profitable due to negative interest rates. For example, in Germany, if a citizen has more than 100,000 euros in his or her account, the authorities can call on these funds at any time to meet the needs of the economy, relating specifically to the amount exceeding 100,000 euros.

Top countries of investors in Dubai

Thus, the countries whose residents are most actively investing in Dubai can be identified as follows:

• United Kingdom
• Italy
• Germany
• Russia
• India

Other countries, such as Sweden and the Netherlands, are following in their wake.

Results and future of the Dubai real estate market

It is worth noting that the Dubai Land Department stated in its annual report that 2021 was a record year in terms of the number of real estate transactions. This achievement even overshadowed the figures from 2020 and many previous years.

Interest in real estate in Dubai remains high and shows no signs of weakness, making this market extremely attractive to international investors. Investing in property in this rapidly developing city is becoming increasingly relevant.

The real estate market in Dubai

The second quarter of 2021 witnessed an increase in activity in the Dubai real estate market: 21,300 transactions were recorded, which is seen as a significant rise compared to 7,741 transactions in the same period of 2020. This positive trend continues, and data indicates that the market became even more dynamic in 2022.

For example, in February of the same year, the total number of transaction registrations exceeded 6,000, compared to about 3,800 in February 2021. It is noteworthy that almost half of all transactions relate to new buildings.

Average apartment prices

As for the average price of apartments, it fluctuates around$280,000But is there any point in talking about an "average price" in such a diverse market?

Initial aspects of the Dubai real estate market

One of the key features of the Dubai real estate market is that approximately 90% of buyers view purchasing property in this city solely as an investment. This circumstance makes subjective aspects such as a picturesque view from the window, friendly neighbors, or a convenient interior less significant. In practice, many investors turn to professional realtors who have the experience and knowledge necessary to identify promising properties that can yield profits in the future. In this regard, the costs of travel, accommodation, and searching for suitable housing may prove to be impractical, especially if professional assistance is not taken into account.

Need for personal attendance

However, despite the high level of automation and the ability to complete several steps online, you will not be able to finalize a deal for purchasing an apartment on the secondary market in Dubai without being physically present. While a preliminary agreement and the transfer of a deposit, which is usually around 10% of the property's value, can be arranged online, the final signature on the contract requires your visit to Dubai. This approach is due to the fast-paced nature of the real estate market in the region. Sellers generally expect that after the deposit is made, the buyer will immediately appear for the final payment.

The principle of "if you don't want it, someone else will take it."

In the Dubai market, the principle of "if you don't want it, someone else will" is practiced. Due to the high demand dynamics, clients do not have the luxury of taking their time with decisions: realtors often provide layouts and terms, and only a few minutes are allocated for making the initial deposit. If the deal is not finalized within this time frame, the risk of the property going to another potential buyer significantly increases. The most attractive properties can be sold within a matter of hours; in such situations, potential buyers often do not receive detailed layouts, but only a general idea of the number of floors and areas.

Financial aspects of purchasing real estate

When it comes to the financial aspects regarding how much money is needed to buy property in Dubai, it's impossible to pinpoint a single amount that suits everyone. In my opinion, the minimum amount to enter the investment property market is around$200,000However, many developers offer attractive installment conditions, which allows you to find offers with a down payment ranging from$15,000to$30,000This makes the possibility of installments more accessible to many interested parties. It is important to accurately assess your financial capabilities and plan installment payments in advance.

Purchase under construction

If the apartment in question is under construction and costs from$200,000The investor has the opportunity to significantly increase its value after the project is completed—sometimes by two or three times, especially if the property is located in a developing area and meets modern requirements. Therefore, without the support of a professional realtor, the purchasing process can become quite complicated, highlighting the need for their assistance when making such important investments in real estate in Dubai.

Conclusion

In conclusion, I would like to emphasize that the Dubai real estate market is experiencing an amazing period of growth and transformation. A few years ago, an apartment in this city seemed accessible only to a privileged part of the population, but today the situation has changed dramatically. The active influx of investors from around the world, thanks to favorable conditions and stable policies, creates a unique opportunity for purchasing real estate even for those who previously only dreamed of it from afar.

Bright examples of new residential complexes and infrastructure projects only emphasize the reliability and attractiveness of investment in Dubai real estate. As we can see, the number of properties is not just growing here, but their characteristics are also improving, which makes purchases more profitable. Every day foreigners, including Russians, are realizing the importance of investing in quality assets, and Dubai is becoming a real salvation in this regard.

Why is it worth investing?

• Reliability and stability of the market.
• Favorable conditionsfor international investors.
• The quality of new residential developments.
• Prospects for growth in the context of global economic instability.

It is important to remember that in the context of the instability of the global economy, investing in Dubai real estate can become a reliable tool for preserving and increasing capital. Moreover, as practice shows, the conditions for doing business here demonstrate a high degree of loyalty to international investors.

Dubai today is not just a center for finance and tourism, but also a place where innovation and tradition coexist in perfect harmony. We are witnessing how this city is transforming, becoming an attractive market for real estate ownership and investments. Ultimately, the choice is yours: to participate in this amazing success story and direct your resources towards the future, or to watch its development from the sidelines. I encourage you to consider investing in Dubai's real estate asoptions for protecting property interestswhich offers not only reliability but also prospects for growth.