Is now the opportune moment to dive into Dubai's thriving real estate market? Contrary to economic uncertainties in Europe, Dubai's real estate sector has been flourishing since 2020, boasting double-digit growth across all market indicators. What fuels this reverse trend, and is it still the right time to invest in Dubai's real estate?
Impressive figures for a prosperous situation
Since 1 January 2023, recorded property sales have jumped by an impressive 40% compared with 2022, which was already a record year. In terms of value, the rise is even more significant, with total transactions topping €62 billion since the start of the year, a remarkable 55% increase on 2022. The average price per square metre in Dubai has risen by 15.6%, with some areas, such as Palm Jumeirah, seeing even greater increases.
Why Dubai real estate is attracting investors
With Europe's economy in the doldrums, investors are turning to opportunities abroad. Dubai, with its highly favourable economic environment, has simplified the property acquisition process, making it possible to own a flat or villa in a matter of hours. For more than twenty years, buying in Dubai has given the right to full ownership, similar to the French system. The returns offered are attractive, between 7% and 12%, depending on the type of property and the rental model. Short-term leases are permitted and payment defaults are virtually non-existent.
Is it too late to buy property in Dubai?
The Dubai government has unveiled its 2040 plan, an ambitious development project for the city's future. The aim is clear: to make Dubai the best city in the world by 2040. Supported by major infrastructure projects, Dubai is preparing to double its population over the next 15 years. New districts such as Dubai Creek Harbour, Palm Jebel Ali, Jumeirah Village Circle and Expo City are being developed, offering attractive investment opportunities at unbeatable prices.
Advantageous tax policies
One of Dubai's main assets is its extremely advantageous tax policies for investors. The absence of income tax and property tax in the emirate guarantees a higher net return than in many countries, where these taxes significantly reduce returns. Investors are able to retain a greater proportion of their earnings, which makes growth and diversification strategies more flexible.
Rental opportunities: Short and long-term
Dubai, a year-round tourist destination and major international business hub, ensures strong demand for both short- and long-term rentals. With a dynamic rental market, landlords have the opportunity to adjust prices according to seasonality and demand. Whether attracting expatriate professionals for long-term rentals, listing properties on dedicated short-term rental platforms or opting for co-living arrangements, Dubai offers a myriad of options for property investors.
Verdict: Dubai, an investment for the future
Dubai is undeniably a destination of choice for property investment. At a time when Europe is facing economic turbulence, Dubai stands out for its impressive growth and stability. The figures speak for themselves: steady sales growth, attractive yields and favourable tax policies are attracting investors from all over the world.
Whether motivated by profitability or a luxurious lifestyle, the emirate offers a multitude of opportunities, from urban residences to prestige properties.
Investing in Dubai isn't just about betting on a booming market, it's also about opening up to a world of opportunity and future prospects.
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