The real estate market in Dubai is one of the most thriving worldwide as it expanded a lot during the last few years. The most important factors leading to the development of the real estate market in Dubai are the tax system, the quality of the buildings and the rapidity they are built with, the demand of investors looking to set up businesses in the region.
Foreign investors who want to invest in real estate can rely on our company formation agents in Dubai who can help them set up companies in this industry or who simply want to purchase or rent properties.
Why invest in real estate in Dubai?
There are many reasons why an investor or an individual would choose to invest in real estate properties in Dubai and among these there are:
- the prices of properties are lower than other real estate investments in Europe, Asia or America, even if the demand in the real estate sector has increased;
- property is a good investment during times of inflation, as the costs of maintenance can be added to the rent of a property;
- rentals generate a good income and even if the value may vary; in Dubai, real estate properties deliver an 8 to 10% rent return;
- real estate has a residual value even if it might decrease;
- investors from all over the world are allowed to purchase or rent properties in Dubai;
- Dubai banks lend money for property purchases.
Real estate investment options in Dubai
Dubai is one of the most appealing investment and business destinations in the world, while real estate is one of the most attractive industries in this Emirate. With a legal framework related to immigration to the UAE which keeps improving, the idea of buying a property here represents not only a good solution for relocation but also for investment.
Here are the most attractive real estate investment options in Dubai:
- buying a residential property in Dubai which in some cases can be cheaper than other large cities around the world such as New York or London;
- buying commercial properties in the mainland and free zones in Dubai, as these can be rented to business owners;
- buying hotels and other tourism facilities, as tourism is just as appealing as real estate as an investment option;
- start a real estate business which will enable one to build various types of buildings in Dubai.
Dubai, is perhaps, one of the few cities in The Middle East and in the world in which real estate offers this many investment opportunities. If you are interested in starting a business in the real estate sector, for example, our company registration advisors in Dubai can help you incorporate your company.
You can also watch the video below for more reasons to invest in real estate in Dubai:
The residential real estate sector in Dubai
While real estate markets all over the world are falling back, the Dubai real estate market has remained the same or even increased in both commercial and residential segments. Even if enterprisers and common people looking to buy a property in Dubai have been cautious during the last few years, they are still purchasing residential properties as the government has supported and assured the real estate market’s stability. The Dubai residential sector has been flourishing due to the apartments and villas purchases. Also, vacation properties are also growing considerably and they include condos, villas, and apartments.
The commercial real estate sector in Dubai
The commercial real estate market in Dubai mainly consists of office spaces, shopping centers, labor houses, and warehouses. The recession had an insignificant impact on commercial real estate property, as the “business capital” is continuously growing in Dubai. As investors keep coming in and companies keep developing and requesting workforce, office spaces, and labor houses for immigrants are highly demanded in the commercial real estate sector. According to researchers, the request for warehouses, hospitals, and shopping centers are also significant.
Real estate will remain a successful industry in Dubai
Several recent surveys have shown the last few years yielded good returns on investment for commercial real estate developers in Dubai. One of the main reasons this industry remains among the strongest is the development of other sectors such as retail, office, and industrial ones. The residential real estate industry is also stable in terms of purchases and rentals. For investors, the income from real estate is usually a stable one, as rentals provide an 8 to 10% return on the investment in Dubai. Also, the Dubai real estate market is open in comparison to other international markets and provides a variety of opportunities in terms of investment. In special cases, such as applying for a loan, real estate can also be good collateral.
The good quality of life attracts rich people to Dubai
Those who consider starting a venture in the real estate sector in Dubai are aware of the fact that this Emirate offers some of the best quality of life in the world and very high living standards. In most cases, this is reflected by the living arrangements one makes. Considering the facilities and the infrastructure the government offers, real estate investment seems one of the most interesting options. The prices of buying or renting properties here are also cheaper than in other metropolises around the world, while the warm weather all-year long attracts many tourists.
If you decide to buy a property here as an investment, do not hesitate to discuss with our local agents about the regulations you need to respect.
Diversity in options
Dubai has many options for those who want to open companies in the real estate sector as new opportunities arise every month. While many Dubai free zones are expanding, there are also options in Dubai mainland which could represent good investment possibilities for businesspersons with vision.
When it comes to real estate investments, Dubai is without a doubt an excellent choice because of the diversity it offers. Dubailand, Jumeirah and Dubai Business Bay are just a few of the areas in which foreign investors could find good business opportunities they can explore.
As mentioned earlier, if you want to open a company in Dubai and need any advice, our agents are at your disposal.
Dubai is open to foreign investments
One of the most important aspects foreign businesspersons consider when choosing a country is its openness towards foreign investments. The UAE is not only open from this point of view but it also keeps amending and giving foreign investors new rights. At the same time, Dubai is taking important steps towards welcoming more investors from Western countries.
Legislation on real estate in Dubai
The real estate sector in Dubai is regulated by the Dubai Land Department which is also in charge of the laws which need to be respected when buying, renting or building new constructions in the Emirate. The fact that rental contracts are very well regulated by the Department, investing in real estate with the purpose of renting a property is one of the most secure options for foreign buyers.
The legislation on real estate in Dubai is quite extensive, comprising around 6 distinct laws, which is why if you are planning in making a significant investment in this sector, we recommend paying attention to these laws. When it comes to their appliance in starting a real estate business here, our company formation agents in Dubai can guide you.
Open a construction company in Dubai
A company in the construction sector in Dubai is definitely a great investment idea, considering the fast forward development of this important sector that generates huge profits each year. The purpose of a construction company in Dubai should be clear right from the start, and entrepreneurs must decide on whether they want a construction company for commercial or for residential purposes. These are two distinct business ideas, each of them subject to different plans and targets that can be entirely explained by a specialist in company formation in Dubai. We present to you a few aspects that should be considered for opening a company in the construction sector in Dubai:
- There is full ownership if a construction company is established in a free zone in Dubai.
- The commercial license and the business permit must be obtained for a construction company in Dubai.
- The Dubai Municipality issues the building license.
- One must obtain environmental licenses in Dubai.
- Special licenses are issued by the Dubai Civil Defence Authority, Dubai Water and Electricity Authority, and Drainage & Irrigation Department.
It is important to hire the services of engineers and consultants in the field who can provide support for creating the construction company you want in Dubai. The business plan for your construction company in Dubai can be entirely created by one of our specialists in company incorporation in Dubai. Feel free to address your inquiries to one of our agents, if interested in a construction company in Dubai.
Best places for real estate investments in Dubai
Investing in the real estate sector in Dubai is for sure a great option for both domestic and international entrepreneurs, due to a wide range of possibilities in this field. According to experts, there are special zones that can be verified from an investment point of view, in the real estate field:
1. Dubai Marina – This is one of the most searched areas in the real estate sector, and home to a large number of office buildings, and also residential properties. You can have this option on your list.
2. Jumeirah Village – This is another great destination for real estate investments in Dubai. This zone is close to Al Maktoum International Airport and many business places. Your construction company can build hotels in Jumeirah Village.
3. Downtown Dubai – This zone attracts a large number of tourists every year, so the business in the construction field is oriented towards hotels and related luxury accommodations. The business Bay is home to many companies with foreign capital.
4. The Palm Islands – The artificial island hosts numerous luxury hotels, villas, houses, and other types of accommodations, and still, there is plenty of room for investments in this field. Your construction company can be developed in Dubai’s Palm Islands.
These are only a few of the destinations to consider in Dubai for future real estate investments, as a local or foreign entrepreneur. It is quite simple to develop such a company in this significant business sector because the environment is subject to various incentives and encouragements that sustain the operational developments. Please feel free to discuss with one of our company formation agents in Dubai and find out how you can invest in the real estate sector in Dubai.
Why is Dubai an attractive city for investments?
Dubai developed extremely fast in the past decades and the success came from international investments made by a huge number of investors. It was quite easy to transform into a special investment city and a solid financial center with a great and stable business environment, plus many advantages in terms of taxation, business incorporation, and many more. The real estate sector is quite prolific in Dubai and among the first developed fields that attracted thousands of investors from all over the world. Hotel accommodations, villas, office buildings, residential buildings, and other types of spaces and lodgings can be easily developed in Dubai, respecting the legislation, the urban plans, and the direction of the real estate field. Obtaining the special licenses and permits relatively fast is another important and appreciated business advantage offered in the real estate sector. Making investments in the real estate sector in Dubai is not complicated, on the contrary, entrepreneurs can benefit from a simple business registration process, a skilled workforce, and a wide range of encouragements for development in this field.
The Dubai real estate sector in numbers
In the last few years, the Dubai real estate industry has performed quite well, given that:
- in 2017, the number of real estate transactions hit 69,000 with a total worth of more than 285 billion AED;
- in the first half of 2018, the number of transactions reached 27,642 and were worth 111 billion AED;
- for the Dubai Expo 2020, around 25 million people are expected to come and rent properties in the city;
- the government announced 10-year validity visas for foreign investors coming to the UAE.
If you are looking for an investment opportunity in real estate, you can contact our agents in Dubai for all the details about setting up a business.