Investing in Real Estate in Dubai: Everything You Need to Know

Published September 19th, 2022 - 06:00 GMT
Investing in Real Estate in Dubai: Everything You Need to Know
Ultimately, when it comes to investing, it all goes down to understanding the market, analyzing the most important demographics and features, and making the most economic-suitable decision. (shutterstock)

As Dubai continues to gain quite the popularity, more and more people are moving to the global business hub. And with that comes an increased need for real estate. In fact, the real estate in Dubai is booming with an increase of around 10% in Q2 compared to Q1 of this year.

This increase in the population has also paved the way for people to consider investing in real estate now more than ever before. Because what better way to invest your money than in Dubai’s thriving real estate industry? 

Investing, in general, is not an easy process. But to help understand where and how to start, understanding the market and benefits is pivotal to the success of your investment. 

Benefits of Investing in Real Estate in Dubai

Perhaps one of the most attractive benefits of investing in Dubai’s rest estate is the Dubai Investor Visa, which grants foreigners a visa if they open their own business or invest. This type of visa allows investors to apply for an Emirates ID card, sponsor their families, and have access to many other services. In addition, the UAE government approved law amendments in 2021 to allow investors who own properties in the UAE to apply for UAE citizenship. 

When it comes to real estate, the duration of the visa varies depending on the amount of investment. For instance, a three-year visa is given for investors who invest at least 1M AED given that the mortgage does not exceed 50%. However, it is important to note that the investment must be in a single property with a maximum of 50% mortgage. 

This investor visa might be appealing for many because it means that foreign nationals can now own and invest in properties without the need for a national sponsor. 

Another great benefit that comes with investing in real estate in Dubai is the fact that investors gain their total profit as they do not have to pay property taxes. Not only that, but studies have also shown that investing in Dubai’s real estate yields higher returns than investing in other mega-cities like London and New York. 

In addition to these benefits, Dubai is a magnet for expats and foreign businesses, which means that there will always be people to sell or rent properties too. With Dubai also being a futuristic and innovative hub, investors can rely on the continuous development and growth of the city. 

Best Areas To Invest In 

What makes Dubai’s real estate even more tempting is the fact that it caters to different social and economic levels. Given the variety of expats living and visiting, Dubai offers a range of investments in both luxurious and affordable areas. 

Some of the most popular areas are Dubai Marina, Downtown Dubai, Dubai Hills Estate, and Palm Jumeirah. These areas are among the most luxurious and sought out areas in Dubai.

Luxurious areas for Property Investment in Dubai

- Palm Jumeirah

Real estate in Dubai
Source: The View At The Palm

Considered to be the most expensive apartments to own, Palm Jumeirah apartments and villas are the only private residents that give private beach access. The palm shaped island offers its residents and visitors a private and luxurious retreat that has access to almost everything you need! 

However, some of the things that have to be considered before investing in Palm Jumeirah is the high-budget lifestyle that comes with living there. In addition, the under construction projects and lack of access to the metro can also be a downside for many people. 

- Emaar Dubai Hills Estate

Source: Emaar

Unlike the noisy and rushed scenery that comes with living in a central area, Dubai Hills Estate offers a calm and peaceful aura for its residents. The nature of its amenities and parks makes it a pet friendly and active space for families. 

However, all great things have their own downsides. Similar to other areas in Dubai, the ongoing construction and lack of public transport might be an issue for some

- Dubai Marina
 

Source: shutterstock

From its strategic location to the high ROI, Dubai Marina seems to be one of the top choices for investors who are looking for luxurious real estate investments. It is reported that rental returns can reach up to 7% annually, making it one of the highest returning real estates worldwide. Not only that but Dubai Marina is also close to the beach and away from key public transports. 

While Dubai Marina is considered to be a top spot to live and invest in, it does come with its shares of disadvantages. Due to its central location and surrounding activities, it can be noisy and hectic with traffic becoming heavy in peak hours. In addition, there are no schools in the area which can be a great disadvantage for families. 

- Downtown Dubai

Source: shutterstock

Even though Downtown Dubai is not as close to the beach as Dubai Marina is, it is still among the most popular areas in Dubai. With its central location, pedestrian-friendly walkaways, and attractive apartment complexes and views, Downtown Dubai is quite appealing. 

With Burj Khalifa being located there, this area screams luxury on all levels. Not only that, but it also offers spots for both nightlife and family friendly outings and schools. Nevertheless, this can come with its own shares of heavy traffic and noises. 

And just like there are high-end areas where luxury is a given, there are also other areas that are popular but more affordable. 

Affordable Areas for Property Investment in Dubai

- District 2020

Source: Expo 2020 Dubai UAE

Following the great success of Expo 2020, the entire side of Expo 2020 is expected to be turned to a full residential area. This smart city will contain many innovative and futuristic centers that might be appealing for many. Given the fact that construction is still ongoing, prices seem to be relatively affordable with experts suggesting that they will increase as completion comes into view. 

The location of District 2020 is also a great one, as residents will have access to public transportation and the necessary facilities and amenities. 

- Dubai Sports City

Source: shutterstock

Investing on a budget does not mean you will be investing in less popular areas. In fact, Dubai Sports City has almost anything you would need when living in Dubai. From commercial complexes to parks, Dubai Sports City offers its residents a great access to everything they need. 

In addition to its great location, it also has several schools in the area. 

- Jumeirah Village Circle

Source: Timeout Dubai

Peaceful and beautiful neighborhood Jumeirah Village Circle offers affordable apartments, villas and townhouses. Unlike most areas in Dubai, traffic does not seem to be an issue for residents of Jumeirah Village Circle which makes it a good choice for those who are looking for a peaceful area. 

However, for people who are looking for a fast-paced place to live where they can enjoy the rush of day to day life, this area is not the right choice. In addition, it is important to mention that it does not have an easy way to access the metro. 

- Dubai International City

Source: Which School Advisor

Its name speaks for itself!

Dubai International City is all about international communities living in country-specific residential districts. And with the high number of expats moving to Dubai each year, investing in this area is a smart choice. 

In addition to its diversity and affordability, Dubai International City has sufficient public transport, schools, parks and other activity centers, as well as malls, restaurants and hospitals. It has everything within range; it almost seems like its own city within Dubai! 

However, one downside to living there is the heavy traffic and parking. 

- Dubai Investment Park 

Source: Which School Advisor

Dubai Investment Park consists of both residential and commercial estates. While it is close to schools, shops, restaurants, and fun facilities, there are not that many leisure activities to do there. For instance, the beach is a good 30 minutes away which might be inconvenient for some. 

- Dubai Silicon Oasis (DSO) 

Source: shutterstock

With its vast choice of properties and affordable prices, Dubai Silicon Oasis is one of the most popular areas to live in. Another great benefit is that it is located not very far away from major attractions, while also being close to the airport. For instance, it is 20 minutes away from Dubai Mall and 15 minutes away from the airport. 

Similar to most areas in Dubai, traffic and ongoing construction can be an issue for those living in DSO. 

Most Popular Real Estate Portals in Dubai

Now that you have a better understanding of the most popular areas and the benefits of investing in real estate in Dubai, it is important to learn about the different real estate portals there. 

Real estate portals like Emaar Properties and Damac Properties offer their users a friendly and easy-to-use website, where users can have virtual tours, see interactive maps, and make instant video calls with the sales team. Whereas, other portals like Nakheel and Dubai Properties have the option of connecting users to live chat agents to help answer their inquiries instantly. 

Other popular and leading real estate portals include Bayut and Property Finder, both of which are considered to be some of the biggest and well-known portals in UAE. 

Real Estate Investment Platforms in Dubai

In addition to real estate portals, it is also pivotal to explore real estate investment platforms that can help you kick off your real estate investment journey! 

A leading real estate investment platform used in the UAE is Stake which helps investors buy shares in prime rental properties, help them with the whole sales process, and guarantees their returns. Other investment portals include reDubai, SmartCrowd, and Dubai Investments

Ultimately, when it comes to investing, it all goes down to understanding the market, analyzing the most important demographics and features, and making the most economic-suitable decision. And regardless of whether you think investing is for you or not, it is something worth considering in these uncertain times.


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