When it comes to global real estate, Dubai is at the top of the most-wanted list. From record-breaking property sales, to new developments raising standards in innovation and luxury, to September’s highly anticipated premiere of Million Dollar Listing UAE (the first international version of the hit series), the entire world continues to be captivated by the allure of Dubai – and foreign investors are capitalizing on it.
As Dubai’s economy and population have continued to rise, so has the influx of foreign real estate investors from all over the world, including Canada, India, the U.K., Russia, Germany, France, and even the U.S. Luxury real estate is the new global currency, and a safe and lucrative platform for investors looking to diversify their portfolios. This makes Dubai’s luxury real estate market an enticing asset for foreign real estate investors to consider.
So how can foreign investors benefit from buying a residence, vacation home, or investment property specifically in Dubai’s luxury real estate market? In addition to its strategic location, strong economy, and government-backed initiatives, there are many other lesser-known advantages for property buyers to capitalize on. We’ve narrowed it down to three surprising ways foreign investors can benefit from investing in Dubai’s real estate sector.
1. Low Price Per Luxury Square Footage & High Capital Appreciation
When considering the price per square foot in the global luxury market, foreign real estate investors get the most space for their dollars in Dubai.
For instance, $1 Million USD can score 1,130 square feet of luxury Dubai property, as compared to only 355 square feet in New York, 366 square feet in London, and 689 square feet in Miami. Coupled with the potential of greater than 10% in capital appreciation per year – more than most cities – investing in Dubai is a win-win.
2. Robust Average Rental Returns
It’s been reported that Dubai’s property investors can expect to see around 7-9% long-term rental returns and between 12-15% short-term returns, with ultra-luxury areas gaining up to 35% short-term rental returns.
Another factor driving high rental returns is Dubai’s tourism sector, which contributes to the great demand for vacation rentals. In fact, Dubai has been crowned the #1 Global Destination by the TripAdvisor Travelers’ Choice Awards for the past two consecutive years. Lastly, rental resources like Airbnb are not restrictive, allowing homeowners the full renting benefits.
3. Incredible Tax Breaks
Dubai is a “no-tax” emirate. For real estate investors, this means there are no property taxes on homes. Since there is no property tax, it positions Dubai as a the second least expensive city to live in, tax-wise.
In fact, the only tax associated with the purchase of property is a one-time 4% charge based on the transaction’s value at the point of sale, which is made to the Dubai Land Department (DLD), the government agency that oversees Dubai’s real estate sector.
Do you have any inquiries about the current luxury real estate markets in Dubai and coastal California? Schedule a call with us to learn more about our portfolio of properties.
Don’t miss this real estate investment opportunity – connect with me for more information!
GG Benitez
DRE# 01487964
+1 (619) 339-7978
GGBenitezInternational.com
