The Dubai real estate market has become a beacon for investors worldwide, with 2021 witnessing an extraordinary sales surge. The city’s property landscape now stands as a buyers’ haven offering remarkable opportunities for capital appreciation.
Dubai has experienced an impressive population increase of 86% since 2008, significantly impacting the real estate sector. The influx of expats seeking security, business prospects, and real estate incentives has led to intense competition among developers. This competitive climate encourages innovative strategies to attract buyers.
In 2020, the pandemic strained the UAE’s economy, notably affecting property sales. Nevertheless, the market has rebounded considerably in 2021, marking a prime time for property investments in Dubai. Buying-to-let has emerged as a prominent trend, with about 70% of the residential market being rental purchases. Over 80% of expatriates in the UAE still rent, fostering a short-term, high-demand rental model. Long-term residents are shifting preferences towards homeownership, perceiving it as more advantageous than renting. This demand rise makes it beneficial for both investors, who enjoy high rental yields and capital growth, and buyers, who gain through flexible payment plans and incentives.
Dubai’s developers are cleverly matching banking services to boost property demand. They offer creative payment plans that may involve small initial payments upon contract signing, further payments on property handover, and the balance in installments. This method not only benefits buyers with lower immediate financial burdens but also secures their asset possession. Furthermore, collaboration with banks provides down payment loans to those unable to afford them upfront. Additional enticing incentives include discounts on school fees for some developments and a 4% fee borne by sellers and paid to the Dubai Land Department. Once bought, properties are free from government taxes beyond registration fees, and foreign buyers may become eligible for residency or even citizenship, amplifying the investment appeal.
Dubai Properties, with over 15 years of industry experience, has set a benchmark by developing residences in various family-friendly communities. Properties like Arabella townhouses, Bella Casa at Serena Dubai, Casa Dora, and others have sold out, showcasing the high demand and validation of their development strengths.
The Dubai property market stands poised for a promising future with its attractive investment opportunities and rising demand. This environment, supported by flexible financial options and valuable incentives, makes it an ideal moment for investors to capitalize on Dubai’s real estate offerings.
