Real Estate Investments in Dubai 2022: All the Pros of Overseas Housing Stock

It’s no secret that Dubai has become a hotcake destination for the capital of wealthy foreigners. However, the popularity of the emirate is not just a result of its direct flights or pleasant weather. People looking for a good investment opportunity have been flocking to the metropolis for the past few years. Flats in Dubai for investment provide you with guaranteed high profits. Let’s discuss why investing in real estate in Dubai is lucrative.

Why Invest in Property For Sale in Dubai

There are many investment opportunities in the metropolis, featuring the acquisition of real estate or starting your own business. In the current year, the real estate market corresponds to the following indicators as:

  • Annual rental income can range between 4.6% and 10% ROI.
  • The housing market has become more affordable, and premium residences are especially high in demand.
  • An excellent way to diversify assets into different types of ownership, locations, and rental levels.
  • Attractive geographical location of the metropolis, a rapidly developing segment of trade and technology, and various benefits for carrying on business.
  • The housing stock has high liquidity.
  • The government has implemented a variety of measures aimed to strengthen the protection of investor capital.
  • The possibility of borrowing money from the emirate’s banks at reasonable interest rates.

The emirate should become the best place to live in the world in accordance with the Master Plan for Dubai’s development over the next 20 years (Urban Master Plan 2040). Such ambitious goals are essential for increasing the number of tourists, the economy, infrastructure development, and the social component.

Rising demand, trends, and changes in the Dubai housing market 

Over the past two years, there has been a huge rise in demand for real estate in both the city and the UAE as a whole. One by one, records are updated. Sales have grown by 60% to 68.5 thousand transactions totaling more than $50 billion since the beginning of the year.

According to the statistics provided by the Land Department, figures show that the third quarter of this year was the most productive in the history of the emirate’s real estate market, with the first six months of this year accounting for 70% of the total investment result for 2021.

Although this burst affected other sectors of the industry, including the economy, the uptrend was largely supported by a significant rise in demand for the premium and ultra-premium segments. All property types are seeing consistent growth in sales, with the exception of ready-made villas, whose sales dropped by 7% year-on-year in the third quarter.

With so many options, there is a greater demand for luxury properties than there are available, which is expected to lead to raising prices, as well as the fact that many residences have already sold out at the stage of private sales, especially when it comes to the segment of unique ultra-luxurious projects.

It’s also important to note the rise in requests for resident visas for business registration and real estate investment in the UAE, as the search for an apolitical jurisdiction in the current situation has redirected many buyers who had previously considered properties in so-called unfriendly countries.

Properties for sale off plan in Dubai is another trend that occurred in the third quarter. The share of off-plan transactions (real estate under construction) reached 57%, compared to, for instance, 45% in 2021. There is reason to believe that interest in off-plan projects in Dubai will continue in the fourth quarter.

The best districts to acquire buy-to-invest flats in Dubai

In the city, there are more than a dozen renowned neighborhoods. Let’s look at a couple of them.

Dubai Marina

Due in large part to its high-end properties, beachfront views, and proximity to tourist attractions, Dubai Marina has been drawing a lot of interest from both premium real estate investors and tenants since the beginning of 2021. In addition, for investors wishing to purchase apartments in Dubai, Dubai Marina provides the best ROI. The average annual ROI for elite flats in this area is 5.5%, however, it can range between 7% and 8% based on the building’s location, the property developer, and the available amenities.

Palm Jumeirah

The largest palm-tree project, with an area of 5.72 sq. km. and 16 branches lined with private villas and coastal homes that can accommodate more than 60,000 people. Multi-apartment buildings, stores, hotels, and marinas can be found on the “trunk of the palm tree”. The island is home to numerous resorts, hotels, skyscrapers, shopping malls, parks, and entertainment venues. The neighbourhood has a strong demand for villas for sale in Dubai. The particular type of housing stock affects a unit’s profitability.

Business Bay

The district has a 6 sq. km. area. It is situated in the heart of the city, just 1.5 kilometres from the Dubai Mall and the Burj Khalifa, the highest skyscraper in the world. With more than 240 office and residential towers, landscaped gardens, a network of roads and rivers, and projects in both freehold and leasehold (no ownership) categories, the area is currently under development and will soon be the new business hub of the area. According to the development plan, 22.1% of the area is intended for domestic use, 18.5% for commercial use, and 59.4% for mixed use. 

The profitability of the housing stock reaches 6%. The official Emirates. Estate website has more details on the emirate’s greatest areas and housing stock pricing.

Conditions for investors when acquiring properties

It is important to remember that purchasing a property in the UAE is among the easiest and most convenient processes in the world, both on the primary market and on the secondary market. The authorities have maximally simplified the procedure for entering the market for potential investors. In particular, it is possible to make a transaction remotely. This is especially important in cases where a purchase decision needs to be made quickly.

The changes to the UAE visa laws that were announced in the spring and that took effect on October 3, 2022, have increased investor interest in the potential of obtaining citizenship or a residence permit through housing purchase. With all this, it should be kept in mind that a resident visa is not issued automatically after selecting apartments for sale in Dubai. Getting a visa is a separate procedure that takes up to four weeks and involves the processing of a whole package of documents and the applicant’s presence in the UAE.

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