With more and more investments flowing into the UAE, and especially in Dubai, people started to see this place as a good investment opportunity. With prices rising significantly each year, and as more and more development goes on, Dubai has managed to become a very luxurious holiday destination. But this does not mean that there are no problems or safety concerns with Dubai and the UAE as a whole.
Dubai sits in a part of the world that is notorious for ongoing problems and wars. They also have some laws and regulations in place that might be unattractive and highlight some questions about the ongoing development of this nation. But are these problems just media hype or is there something behind them? Here we will be taking a look at these and seeing if investing in Dubai property safely is possible.
Things to know about Dubai real estate market
- From 2021 to 2022, the sales volume of real estate doubled in Dubai, with prices also rising by around 45%
- Dubai is one of the fastest-growing and most developing cities in the world
- In the past few years, hundreds of billions of dollars have been invested in Dubai
- There are many benefits that come when investing in Dubai real estate
State of the Dubai real estate market
Dubai is one of the fastest developing and growing cities in the world. Billions of dollars go into developing this city each year, but the question is whether it is safe to invest in Dubai real estate. Because of this, we are going to take a look at Dubai’s real estate market and see if it is really a safe place to invest in.
Location and geopolitics
One of the first things we need to consider when investing in a real estate market is the location of the market and what is going on around this market in general. In the case of Dubai, it is the largest and most popular city in the United Arab Emirates, despite not being a capital city. Located in the middle of the Persian Gulf, Dubai is a rich city with most of its native population being considered ultra-wealthy.
But being in the center of a resource-rich location comes with some disadvantages. The Middle East is known as one of the most unstable locations on the face of the earth, with terrorist organizations such as ISIS and Al-Qaeda all coming from this region. This means that there is a constant tension in this region, with multiple wars being fought at the same time. The United Arab Emirates itself is currently part of 2 ongoing wars.
But saying that this is a bad place to invest in because of these risks might not be fully correct. Things have somewhat calmed down in the last few years. Because of this, investment in Dubai might be a great decision if you have the funds to do so.
Regulations on the market
Now, let’s take a look at the different regulations and laws that are present in Dubai. The United Aram Emirates knows that it can not be dependent on oil forever, and because of this, they are bringing in new regulations and laws that will help them develop and be known for something other than just having a bunch of oil.
The country has made it easy for foreigners to invest in properties, as they put requirements in place that are super simple. Just having a valid passport is enough to buy a property in Dubai. Also being somewhat of a tax haven, the attractiveness of Dubai from the commercial point of view is destined to increase, so the fear that people might lose interest in this place is super low.
Being a middle eastern country, Dubai and the whole UAE have relatively relaxed laws, which are becoming more relaxed as time goes on. This is another factor that makes property investments in Dubai safe. For example, alcohol consumption is illegal in most of the Arab world, with a good example being Qatar banning beer from the 2022 Fifa World Cup games. But in the case of UAE and Dubai, these laws are relaxed. While you can not drink alcohol anywhere you like, Dubai residents can still drink alcohol inside their homes or in specially licensed locations. This is just one example, and there are countless more laws that have been relaxed, in order to attract more people from other parts of the world.
So if you are looking at the possibility of investing in Dubai’s real estate market and are afraid of harsh laws that might exist there, know that most of what you think is incorrect. But this does not mean that laws there are non-existent, as drug consumption or simply not paying your debt will lead to at least jail time and in the worst-case scenario the death penalty.
Final thoughts on if it is safe to invest in Dubai property
When we are thinking about whether it is safe to invest in property in Dubai there are many factors that need to be considered, but in our opinion, yes Dubai real estate investment safety is there. When looking at the location of this country and city, we see that it is in the middle of a geopolitical nightmare which is the Persian Gulf. But despite this, the UAE tries to distance itself from ongoing conflicts and political upheavals as much as possible, not siding with anyone, except for the two long-standing conflicts in which it is still currently involved. Therefore, investing in Dubai property safety is not much affected by these geopolitics.
Dubai and the whole UAE have also introduced more relaxed laws, to bring them up to par with western standards. Being an Arab country, it might be easy to believe that living in Dubai will bring many different challenges and difficulties, especially with regard to the law. But Dubai has introduced new reforms, making this city and the whole country more tourist friendly. While they still maintain some harsh laws regarding stuff such as drugs, theft, and not paying bills, others have been relaxed in order for the country to appeal to a larger market. Dubai also has tight control over the press and free speech is not something that is present here. But these laws are not as strictly enforced as seen in some of the neighboring countries. It is expected that these laws will also be relaxed in due time.
With this, we can say that it is safe to invest in Dubai real estate, and if you have funds and are thinking of investing them in Dubai, it is most likely a good decision. Therefore, go look for a good Dubai real estate agency, that will help you to learn more about the Dubai real estate market and will make sure that you are purchasing something that’s worth investing into.
Frequently asked questions about investing in Dubai safety
When it comes to investing in the real estate market of Dubai, there are some risks to take note of. The biggest risk among them has to do with the geopolitical state of the Persian Gulf. There are constant wars and conflicts going on there, and even if the UAE tries to avoid them, they might still appear in the middle of a crossfire.
Currently, the UAE is not at direct war with any nation, but they are still part of two major ongoing crises. They are part of the countries that have declared war on ISIS and they have been involved in fighting ISIS since 2014. The second conflict they are involved in is the Yemen Civil War, where they are supporting the Yemen government to defend themselves from attacks from rebels and terrorist organizations.