15 factors that encourage real estate investment in Dubai
A view of the Bulgari Resort and Residences in Jumeirah, Dubai.
The Dubai-based real estate brokerage firm W Capital has identified 15 main factors that encourage investors of different financial solvency to invest in real estate in the Emirate of Dubai.
Real estate expert Walid Al Zarouni, Chairman of the Board of Directors of the “W Capital” real estate brokerage company, said that Dubai has become a global city, a preferred destination for living, working, entrepreneurship and tourism, and a destination for many from all over the world, for the purpose of investment and residence, in light of the urban shift that it witnessed in the last two decades.
Al Zarouni monitored the 15 most important factors that make Dubai a safe haven for living and investment, which helped the market record sales month after month, whose value has now exceeded Dhs1.5 billion per day on average.
1- Regulating legislation
Dubai provides a legislative environment that takes into account the rights of all, and maintains the discipline of citizens and foreigners alike without discrimination, as well as the speed of litigation.
This increases investor confidence and motivates them to reside permanently, in addition to applying best practices and legislation within the real estate market, which regulate real estate ownership, off-plan sales, or leases.
2- Infrastructure
Dubai has an infrastructure that is considered the best in the world in all sectors, amid keenness to import the best technologies and constantly update the infrastructure, to keep pace with the development and growth of Dubai's economy.
3- Entertainment activities
The world comes to Dubai throughout the year, with the entertainment activities that impress everyone, in addition to the attractive tourist attractions within Dubai.
4- The investment environment
Dubai provides an investment climate that is characterized by maturity and continuous development, to keep pace with the requirements of investors, and raise the indicator of confidence in the future of the market, in addition to the ease of launching businesses and the large returns that are achieved from these investments.
5- Diversity of real estate products
The real estate sector in Dubai provides multiple options for investors of all kinds, with a multiplicity of real estate products, starting from small-sized studios for sale or rent, to luxury villas worth hundreds of millions.
6- The strength of Dubai's economy
Economic recovery is one of the most important indicators that investors focus on, as this reflects the size of the opportunities available within the economy. Therefore, the emirate's economy is recording positive growth rates, benefiting from the improvement in the tourism, hospitality and real estate sectors.
7- Ambitious government initiatives
Ambitious government initiatives, which turn the impossible into a tangible reality, are considered one of the main factors to make Dubai one of the most prominent investment destinations in the world, adding that government successes are not only reflected in the real estate sector, but also extend to the business, tourism, hospitality and entertainment sectors.
He pointed out that the Dubai Economic Agenda "D33", as well as the Dubai Urban Plan 2040, which aims to double the population of Dubai and increase the urban area, are among the initiatives that will enhance real estate activity in the emirate over the next two decades.
8- Regional standing
Dubai is gaining a regional position that has made it the best in the sectors of investment, living, security and safety, as well as high-quality infrastructure, and hosting the largest number of regional headquarters for international companies.
9- Sustainable real estate demand
Strong and sustainable real estate demand maintains its continuous momentum.
This is a strong incentive for foreign investors to invest in Dubai, with the sector booming and recording record levels of sales and returns at the same time.
The strong demand, including from people wishing to move to live in the emirate, helped to scarce supply, in addition to the projects that are being implemented constantly to keep up with the demand from investors, which contributed to providing unlimited horizons of important investment opportunities.
10- Residency granting facilities
The Emirate of Dubai has put forward in the global citizenship market through the facilities of granting residency, and has become attracting a large share of investors and foreigners aspiring to search for an alternative homeland and a safe place to live and work, which is reflected in the recovery of the real estate sector.
The residency facilities are a strong incentive that investors are looking for, as this will encourage them to make long-term investments, with golden residency grants of up to 10 years, with the possibility of extending them for a longer period.
11- High return on investment
Dubai has outperformed many of the major real estate markets around the world in terms of real estate investment returns, especially in residential real estate (apartments and villas), which recorded a year-on-year jump of 12.5% during the first quarter of 2023, supported by the strong rise in rents at the global level on different regions.
12- Lower taxes
The lower tax rate compared to other major markets is one of the main factors that motivate investors to invest and buy real estate in Dubai.
Dubai does not impose any tax on the purchase of residential real estate, so exempting real estate transactions from taxes is a factor that makes the emirate a preferred choice for real estate investment around the world, especially since the burden of real estate tax is higher in other countries, such as Britain 2.5%, France 1.7%, and Greece 1.5%, according to the International Tax Competitiveness Index.
13- Geographical location
Dubai's geographical location is a stimulating factor for investment for the majority of the region's residents, in addition to being a favorite entertainment destination for Arabs and Gulf nationals.
14- Security and safety
Dubai is one of the safest cities around the world, and this is one of the most important elements that investors look for before setting up their business.
15- Ease of selling
Momentum within the real estate market facilitates buying and selling operations, and achieves good capital growth, at a faster rate than anywhere else.
