Is it worth investing in UAE real estate?

Is it worth investing in UAE real estate?

Is it worth investing in UAE real estate?

Looking at the Persian Gulf, what most people are used to seeing are huge oil reserves and constant geopolitical tensions. But as time has passed, this place has also become a great spot for investments, especially in the United Arab Emirates, which has cities such as Dubai and Abu Dhabi, which are some of the most popular and visited middle eastern cities.

With this in mind, many people started to wonder if UAE properties are worth investing in. As the UAE pours more and more money into the development of many different parts of the country, the real estate market has become one of the main benefactors of these investments. With constantly growing prices, benefits such as residency visas, and relaxed tax laws, is it really worth investing in UAE properties when considering the location of this country and the geopolitical state in which it currently is? In this article, we will try to answer these questions and see if it’s really worth investing in the UAE real estate market.

Things to know about UAE real estate

  1. The best and most expensive real estate market in the UAE is Dubai
  2. The price of real estate in the UAE has been on a rise for quite some time
  3. When investing in UAE real estate, there are different benefits that you can receive
  4. The UAE has one of the most expensive real estate markets in the world

Advantages of investing in UAE real estate

There are many people looking for investment opportunities and one question many of them have is whether it is worth it to invest in UAE real estate or not. Well, the simple answer is yes, but there is more to it. While for some it might be worth investing in UAE real estate, for others it might not be the best decision. Let’s take a closer look at this situation and see what advantages there are when investing in UAE real estate. 

Benefits of investing in real estate in UAE

Whether it is worth investing in property in the UAE or not comes down to the question of what benefits you receive on top of property investment. Well, there are quite a few of them. These benefits are what make the UAE an interesting place to invest in, as on top of regular investment there are other benefits that you can enjoy.

One of the biggest benefits of investing in UAE real estate is the possibility of receiving a residency visa. Anyone, who makes a purchase of a property that is worth more than AED 1 million, which is equal to around 270,000 USD, is eligible to receive a 3-year residency visa that can be renewed as long as you own the property. This increases to a 5-year visa if the property is valued at AED 5 million, equivalent to around $1.3 million. 

If you are over the age of 55 and wish to retire in the UAE, there is a system that will let you do this really simply. Anyone over the age of 55 can invest in UAE real estate and purchase a property valued at at least AED 2 million, equivalent to $540,000 and be eligible for a 5-year renewable residency visa. They can also achieve this by having at least AED 1 million in savings or a monthly income of at least AED 20,000. With all of this, it shows that Dubai real estate is definitely worth investing in. 

Other advantages of investing in UAE real estate

Just having a residency visa might not be enough to make a final decision on if planning to invest in this market. But there are other advantages that come with owning real estate in the UAE. Taking the following factors into account, it is really worth investing in UAE real estate.

The UAE is a tax-free country. What this means is that residents don’t have to pay any income taxes to the government, and the profits they make are fully theirs to keep. This gives investors a great opportunity to move their business operations to the UAE if it is a possibility. On top of having made an investment in a property that’s prices are likely to rise, you can also save a good amount of money, by not paying any taxes. 

We also need to consider the location and climate of the UAE. If you are not a winter person then the UAE will be heaven for you. During summer the United Aram Emirates is one of the hottest places on earth, with temperatures averaging around 32-37 degrees celsius. While this is a lot, the UAE has a lot of indoor infrastructures geared toward giving people something to do on those boiling hot days. A good example is the Burj Khalifa. People who reside in Burj Khalifa can technically live the rest of their lives inside the building without leaving the indoor premises. The main beauty of this climate is that during winters, the weather here is perfect, with average temperatures ranging from 17-25 degrees celsius.

The growth of the UAE real estate market

Now the question of whether it is worthwhile to invest in UAE apartments can be clearly answered by taking a look at the growth of the UAE real estate market. The United Arab Emirates is one of the wealthiest countries in the world thanks to the oil reserves the country has. But this is not permanent wealth, as oil is a nonrenewable resource, meaning that the UAE will eventually run out of it. It is also expected that the demand for oil will fall as time goes on and people move more towards renewable resources. Because of this, the UAE has started to invest in different industries, with real estate being one of the primary focuses. 

This can be clearly seen when looking at the growth that the UAE real estate market has had in the last few years. Just this year alone the sales volume of the real estate market has doubled compared to 2021, with prices also increasing by around 44%. Having a 44% return on investment in just one year is something to drool over, and the UAE gives us this opportunity. Currently, there is no place more desirable than Dubai, with almost every billionaire having property in this city.

But when talking about the UAE real estate market, most people usually only consider Dubai as an option, but the UAE has other big cities that can’t be ignored. For example, the capital of UAE, Abu Dhabi is one of the most well-known places in the world, with its own booming real estate market. There is even a time each year when there are millions of eyes aimed at Abu Dhabi, as they host the Abu Dhabi Grand Prix. So if you are a fan of motorsports this is another reason why it is worth investing in UAE real estate.

Final thoughts on investing in UAE real estate

the United Arab Emirates is one of the most developing countries in the world, based on investments being made in the country, with billions of dollars invested in the development of infrastructure. The UAE spends a big chunk of these investments on real estate development. Because of this, investing in UAE real estate has become an attractive chance to make good money, with many investors wondering if it is really worth investing in UAE houses and other real estate projects. 

To answer this question we need to consider what the UAE offers as benefits. With real estate ownership comes things such as residency visas for those who invest a set amount of money in real estate, and also for those who wish to retire in this Arab country. Investing in UAE real estate also has other advantages, such as relaxed and practically non-existent tax laws, sunny and hot weather, and well-built and maintained infrastructure. It should also be noted that prices of UAE real estate have been rising significantly in the past few years, with just last year’s prices rising by around 44%. Because of this, looking for a real estate agency in Dubai might be a good idea. With the help of these agencies, you can learn more about the real estate market, learn about prices, locations, and other necessary information. If after this you are happy with what you are seeing, investing in this market might become the best decision you have ever made.

Frequently asked questions about if it’s worth investing in UAE real estate

Is the UAE real estate market good to invest in?

Based on the fact that the UAE real estate market has been growing tremendously in recent years, investing in it is probably a really good decision. If we compare 2021 and 2022, the sales volume has doubled, while prices also managed to rise approximately 44%, making it one of the fastest-growing markets.

How much money can I make by investing in the UAE real estate market?

If you are investing in this market for the long term and renting out the property, you can make around 8 – 10% profit per year, while for the past few years the price of real estate has been rising on average by between 20 – 30%, making it a really good investment opportunity.


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