Investment in real estate in Dubai has been a popular trend in recent years. According to Forbes, by October 2022, the number of transactions for the sale of residential, commercial real estate and land in Dubai increased by 77% compared to last year.

At the same time, prices also increased - by almost 90%, which, however, did not become an obstacle for those wishing to purchase real estate in the UAE. In the third quarter of this year alone, 1.5 times more transactions were carried out over 100 million dirhams ($27 million).

In this article we will tell you how justified such demand is. And where exactly to invest in order not only to save your savings, but also to get a good profit. At https://dubai.etagi.com/en-us/realty/ you can view various real estate options. 

Why Dubai attracts foreign investors

According to the Dubai Land Department, in the third quarter of this year the number of transactions increased by almost 60%, and their value by more than 140%. Rental prices and ROI, an indicator of return on investment, have also increased.

The massive success of the real estate market in the emirate is easy to explain. Luxurious restaurants, hotels, beaches and luxury residential complexes are all associated with the epitome of luxury living and paradise.

But besides a beautiful oriental fairy tale, Dubai also offers more convincing arguments for expats and investors :

• Soft taxation system in the country. There is no need to pay taxes when purchasing, gifting and receiving income from housing, working for local companies and running a business. Thanks to this, many entrepreneurs, their families and employees come to the country.
• Simple purchase and registration procedures. You can conclude deals remotely online, negotiate, sign contracts and permits.
• Political and economic stability. The UAE cooperates with many countries . The unstable situation on the world stage did not affect business relations.

In recent years, the UAE has been focusing on the active development of international trade, tourism, real estate and IT technologies, which creates favorable conditions for economic development. In addition, there has been a stable growth of the national currency for more than 20 years, despite periods of crisis in the world.

• Highly liquid real estate. According to Forbes, in Dubai you can receive from 20 to 160% profit from resale or rental of an asset, depending on the project and the moment of exit from it.
• No need to explain the origin of income. This makes Dubai an ideal investment destination and also attracts a large number of high net worth individuals from all over the world to the emirate. According to Henley & Partners, there are now 13 dollar billionaires and almost 70 thousand millionaires living in the city. And the international company New World Wealth believes that in 2023 Dubai will enter the top 20 richest cities on the planet.
• Bonuses and attractive offers. There are a large number of new projects emerging in Dubai that can satisfy any request. There are also many different promotions from developers, such as interest-free installments, discounts on registration fees and receiving a business license along with the keys to the apartments.
• Obtaining a residence permit. When purchasing real estate at a price of $205,000 or more, you can apply for a resident visa, thanks to which you are allowed to stay in the UAE without restrictions, open a bank account, officially find employment, register a business and obtain visas - Schengen and the USA.

All this stimulates the active growth of interest in Dubai real estate from investors from all over the world.

How to choose liquid real estate

There is a huge amount of real estate under construction and ready-made in Dubai. How to understand which of them is profitable and how much profit it can bring in the foreseeable future? And can it fail to meet the investor’s expectations? It is worth considering that not all objects are equally liquid.

The financial attractiveness of real estate is influenced by a large number of parameters:

• The reputation and reliability of the developer, which can be assessed by the number of successfully completed projects, experience in the construction industry, information about partners and awards. You can check the company on the official portal of DLD - Dubai Land Department. And also look through the company’s website and social networks, study reviews.
• Project location, infrastructure development and transport accessibility. A location close to popular attractions, for example, next to the Burj Khalifa skyscraper or Dubai Marina beach, has a good effect on the attractiveness of the property and increases its value in the future.
• Urban sprawl. Not everyone knows how important it is to pay attention to which direction Dubai will expand. Real estate that is located on the periphery today may become the de facto center of the city in the future. Therefore, it is worth looking 10 years ahead and taking into account the development of the emirate and the shift of its “heart” when choosing an asset.
• The moment of entry into the project. At different stages, the value of real estate differs, sometimes quite significantly. For example, at the start of sales, prices are lower than after commissioning. It is most profitable to purchase objects at the pre-sale stage.
• Possibility of installments or purchase with a mortgage. Construction companies often provide comfortable payment terms. In our practice, there were examples when, by paying 30–40% of the cost of real estate, an investor received a profit of 10–15% within three to four months.
• Terms of payment. Due to current events in the world, the process of buying apartments abroad has become more complex. 

The most common way to conduct transactions was to deposit money directly into the developer’s account or transfer it from your bank account in Dubai. There is also an option to pay for your purchase with cryptocurrency.

Despite the difficult situation in the world, we can safely say that Dubai is a safe and stable place to purchase real estate and make a permanent profit. However, before completing a transaction, it is worth carefully studying the options presented on the market and assessing their liquidity.

This is often quite difficult to do on your own, especially if this is your first purchase. A professional broker can help in this matter.