Buying Property in Dubai: Is Now the Right Time?
The coronavirus pandemic made a lot of people uncertain about investing, but those who have been interested in buying real estate in the UAE and offering their recently-purchased property for rent in Dubai were not discouraged. The thing is, the real estate prices greatly decreased because of the lockdowns and shutdowns in 2020. That caused people who had the opportunity to buy villas or flats before but postponed a decision waiting for better circumstances to finally act. From the beginning of this year to the third quarter of 2021, people got twice as much money for selling their property than in the whole of 2020 — and they sold a lot, mostly in Dubai Marina and Business Bay.
But let’s review the benefits of buying property in the UAE in more detail.
The Cost of Living in UAE Is Relatively Low
Whether you want to retire, plan to move here because of work, simply wish for a change of scenery, or think about investing in property in Dubai, it is helpful to have an understanding of how much living here costs. The image of Dubai being a destination only for the rich is super strong. As research reveals, Dubai is number 42 in the list of most expensive cities to live in — with Ashgabat and Turkmenistan taking the lead.
Let’s take a brief look at the numbers. The one-bedroom apartment in Dubai downtown will cost around 5,431 AED ($1,478.55) per month. In comparison, the real estate company in Vein will charge $1,046 on average. The price of a 3-course lunch for two in a mid-range restaurant is nearly 250 AED ($60.06) and the monthly transportation will cost you about 300 AED ($81.67). Living in Dubai is cheaper than in London and New York.
Also, residents of Dubai have quite high salaries. The UAE is one of the very few countries that do not have the concept of income tax, so people receive ALL the income they earn. (There are additional conditions to types of businesses that do not have to pay income tax, though — you can check if your business qualifies here.)
Booming Tourism Will Earn You Money
Over the previous years, Dubai has evolved into one of the world’s most prestigious and luxurious cities, tempting experience-seekers from different corners of the world.
As a place that is famous for the highest skyscrapers, most luxurious shopping malls, gentle climate, and incredible international cuisine, it’s unsurprising that Dubai faces a tourist boom. The high vaccination rates and the government’s appropriate steps to combat the pandemic have strengthened the position of Dubai as a safe destination for travelers — that contributes to the number of people going there on vacation, too.
Why is the flow of tourists the significant reason to buy houses and apartments in Dubai? The tourist boom gives you higher chances to get revenue from renters. People who rent out their apartments or villas, and hotel and hostel owners get millions because of travelers annually.
The City that Grows Fast Will Keep Attracting More People
New World Wealth says that the UAE is the wealthiest among the Middle East countries: Dubai is the richest city in the region and the most productive business hub. It has grown immensely since the discovery of oil in the sixties.
It’s impossible to get bored here — the city is buzzing with life and colors. The Dubai Museum will tell tourists about the history of Dubai from ancient times to nowadays; its entrance fee is only 3 AED ($0.8). Jumeirah Mosque lets foreigners learn about the religion and culture of the UAE citizens. The zoo museum called The Green Planet will be of great interest to people with kids — the ticket costs 90 AED ($24,5).
Transportation in Dubai is super simple: people rent cars or bikes or just use the metro. The average bike rent cost is around 200 AED per day (54,45 USD).
All of that — a variety of cultural knowledge and entertainment options for people with different tastes with different backgrounds — is another reason Dubai gets so many visitors, both traveling and relocating. And, as it’s already been mentioned, that is why it’s beneficial to invest in the local property.
Known for its luxurious shops, white sandy beaches, and — as of 2020 — strict anti-epidemic measures, Dubai has become a hotspot for travelers. Tourism is flourishing here — along with the property market. Investments are pouring into the city.
For an investor, the Dubai housing market provides long-term value, obviously, — but it also provides them with a great quick revenue source (if they are to rent their new villa or apartment out). So is now the right time to step into the real-estate market here? Undoubtedly!