Invest in Dubai Real Estate

Establishment of modern Dubai

Dubai is thought to have been established as a fishing village in the early 18th century, a town of some 700–800 members of the Bani Yas tribe and subject to the rule of Sheikh Tahnun bin Shakhbut of Abu Dhabi. In 1822, a British naval surveyor noted that Dubai was populated with a thousand people living in an oval-shaped town surrounded by a mud wall, scattered with goats and camels. The main footpath out of the village led to a reedy creek while another trailed off into the desert and merged into caravan routes.

In 1833, following tribal feuding, members of the Al Bu Falasah tribe seceded from Abu Dhabi and established themselves in Dubai. The departure from Abu Dhabi was led by Obeid bin Saeed and Maktoum bin Butti, who became joint leaders of Dubai until Ubaid died in 1836, leaving Maktoum to establish the Maktoum dynasty.

Dubai signed the General Maritime Treaty of 1820 with the British government and other Trucial States, following the British campaign in 1819 against Ras Al Khaimah. This led to the 1853 Perpetual Maritime Truce. Like its neighbors on the Trucial Coast, Dubai also entered into an exclusivity agreement in which the United Kingdom took responsibility for the emirate's security in 1892. In 1841, a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira.

In 1896, a fire broke out in Dubai, a disastrous occurrence in a town where many family homes were still constructed from barasti – palm fronds. The conflagration consumed half of Bur Dubai's houses, while the Deira district was said to have been destroyed. The following year, more fires broke out. A female slave was caught in the act of starting one such blaze and was subsequently put to death. In 1901, Maktoum bin Hasher Al Maktoum established Dubai as a free port with no taxation on imports or exports, attracting merchants and setting the stage for economic growth. This historical resilience and strategic vision drive the appeal to invest in Dubai real estate today.

What is the property growth rate in Dubai?

The average sales prices for residential property in Dubai increased by approximately 18% between 2022 and 2023, reaching AED 1,332 per sq ft. Average rents have also increased by approximately 26% over the same period, rising to AED 92 per sq ft as of December 2023.

How much do real estate investors make in Dubai? On average in Dubai, it's around 5–7%. Some properties with high liquidity can bring profits of approximately 11% annually. We have a catalog of investment properties with ROI ranging from 4% to 9%, but that's not the limit.

8 Reason why you should Invest In Dubai Real Estate?

Dubai has established itself as a prime destination for real estate investment, and this trend will continue in 2024. The city's dynamic economy, favorable government policies, and robust infrastructure make it an attractive choice for both local and international investors.

we will explore the reasons why Dubai should be on your investment radar this year and the exciting opportunities that await investors, regardless of their experience level.

1. Tax-Free Environment: 

Dubai's tax-free status has turned it into a haven for wealthy investors seeking secure and lucrative investment opportunities. With no income taxes, property taxes, or capital gains taxes, Dubai provides a unique opportunity for investors to grow their wealth with minimal tax liability.

2. Booming Economy: 

Dubai's advantageous location and pro-business policies have fueled rapid economic growth, making it a hub for trade and commerce. The expanding economy has led to increased demand for real estate, driving the construction and sale of both commercial and luxury residential properties.

3. Safe and Stable City:

Dubai's reputation for safety and stability is a major attraction for real estate investors. With low crime rates and a secure environment, the city offers a haven for investments. The government has implemented various measures to ensure the safety and security of residents and visitors, including surveillance systems, a dedicated police force, and strict regulations.

4. Robust Tourism Industry: 

Dubai's tourism industry continues to thrive, with millions of visitors arriving each year. The city hosts international events and conferences, generating high demand for short-term rental properties. This presents an excellent opportunity for real estate investors looking to capitalize on the growing tourism industry.

5. Strong Rental Market: 

Dubai's rising population and influx of expatriates create a strong demand for rental properties, including apartments, villas, and commercial spaces. The city's high rental yields, among the highest in the world, ensure a steady stream of rental income for investors. The thriving tourism industry further contributes to the demand for short-term rental properties.

6. Competitive Property Prices:  `

Compared to other major cities, Dubai's real estate prices are relatively low, offering affordable investment opportunities. The market provides a wide range of options at different price points, from affordable studio apartments to luxury villas and commercial properties. Flexible payment options add to the appeal, accommodating investors with various budgets and goals.

7. Strong Return on Investment: 

Dubai's real estate market has a proven track record of providing a stable and high return on investment. With an average yearly return of 5% to 8.4%, it competes favorably with other global cities. The city's population growth and government initiatives to attract foreign investment contribute to rising property prices and increased ROI for investors.

8. World-Class Developers: 

Dubai is renowned for its world-class developers who create iconic and luxurious properties. These developers have a reputation for innovative designs, high-quality construction, and sustainability. Their expertise ensures that investments are safe and profitable, attracting both local and international investors. Dubai real estate reached its peak? “Prices in most areas have now surpassed their 2014 peaks and are still growing as buyers keep coming from Europe, India, and other South Asian countries,” she said. According to property consultant Knight Frank LLP, Dubai had a record 274 billion dirhams ($74.6 billion) worth of property changing hands in 2023.

Conclusion

Investing in Dubai real estate presents an opportunity for several reasons. The city's tax-free environment, booming economy, safe and stable setting, thriving tourism industry, strong rental market, competitive property prices, and high return on investment make it an attractive destination for both local and international investors. The city's real estate market has shown robust growth, with property prices and rental rates increasing significantly over recent years.

Dubai's modern infrastructure, strategic location, and world-class developers further enhance its appeal as a prime investment hub. Given these factors, along with Dubai's continuous efforts to attract foreign investment and ensure a business-friendly environment, Investing in Dubai's property market can yield substantial and sustained returns. Whether you are a seasoned investor or new to the market, Dubai offers a range of opportunities to grow your wealth. For tailored advice and insights, consider consulting with a Real Estate Consultant in Dubai.