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Is investing in real estate in Dubai a good or bad business?

Is investing in real estate in Dubai a good or bad business?

Is investing in real estate in Dubai a good or bad business?

The real estate market in Dubai set a new record in the second quarter of 2023. Total sales amounted to around €23 billion for 30,000 completed transactions.

While the real estate market in France is experiencing a serious downturn for a number of reasons, which we will discuss below. The question is: What makes real estate investment in Dubai so attractive? Is it worth taking advantage of this opportunity? Let's take a look at the arguments in favor of investing abroad.

The limitations of real estate investment in France

According to a recent survey by CSA Research, three quarters of French people believe that real estate investment is now a market for the elite. Post-coronavirus immigration paper has yet to subside and rental yields are too low due to rent restrictions in many communities. The struggle with real estate income has intensified over the years. Owning property abroad, whose value in euros is much lower, avoids or reduces the impact on property tax. All these factors make buying real estate out of reach for many modest investors.

Is investing in real estate in Dubai a good alternative?

To know if investing in real estate in Dubai is profitable, you must first understand how it works locally. Let's review!

Legal side

Dubai law is very flexible when it comes to attracting foreign capital in real estate. The reason is that the city is looking to increase its population. Real estate investment is one of the main tools that local government relies on to achieve this goal.

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While major cities in Europe have tax burdens that are too high, complex and confusing, Dubai has no land tax. There is also no income tax. These tax advantages don't exist anywhere else. This provides excellent real estate returns, much higher than expected in France.

Attractive economic stability

The emirate's economic stability is another incentive to invest in real estate in Dubai. Not as dependent on oil as it was 20 years ago, the emirate has been able to diversify its economy by emphasizing sectors such as finance, tourism, real estate and even technology. This has boosted the Dubai economy, boosting investor confidence in a very dynamic real estate market.

Security

Another not insignificant factor is security. Realizing that it is a very important criterion in real estate investment, the government of Dubai has put a huge amount of effort and expenditure to ensure security in the city. Although it is not in the top 10 safest cities in the world, the emirate may soon join that ranking.

Flexibility of procedures

It only takes a few hours to become a property owner in Dubai. Immediately upon purchase, you have all the powers of ownership. You can even pay off your property over several years by bypassing the banks. You deal directly with real estate developers who do not charge interest.

Affordable prices

While the price per square meter in Paris is around €10,000, the price per square meter in Dubai is around €2,000. For the sum of 500,000 euros you can buy an apartment. Of course, prices may vary depending on whether you choose an apartment in the center of Meydan or in one of the most affordable areas of the city, such as Jumeirah Village Circle.

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