Dubai stands as an oasis of economic stability in the global market, which makes it appealing for potential investors. The city's economy rests on five robust pillars: tourism, trade, real estate, finance, and logistics, which helps to avoid economic fluctuations. If talking about investment in real estate it is a beneficial solution, as this is a liquid asset, being, in turn, a good option for passive income.

How to invest in Dubai real estate?

To invest in property we recommend you to follow three basic rules:

Find best option, which will define your needs and preferences
Pay attention to the secondary market. Familiarize yourself with the most recent trends, housing prices, desirable neighborhoods, and potential prospects for future development. Collecting data on trustworthy real estate firms can also yield positive outcomes.
Search for trusted real estate agent
Buying or renting a house is usually not an easy task, that's why contacting a real estate agency is extremely important. Today there are more than 1200 agencies, that's precisely why you should be carefull in your choice to avoid unscrupulous brokers. T.H.E.Capital is one of the few agencies in the emirate’s huge market that can be called reliable, because in May 2023 alone, the volume of real estate transactions increased by 87% and reached $9.3 billion. For today the agency's portfolio includes more than 200 objects, and brokers will not only help you find the perfect project, but will also guide you from the beginning to the end of the transaction, taking into account all requirements.
Make the first payment for off-plan (at the construction stage) or a deposit to the developer
In Dubai real estate, individuals or entities, whether they are companies or agencies, engage in property-related activities as developers. Simultaneously, it's crucial to understand that the increasing quantity of companies can greatly complicate the selection of credible agencies. Among the developers who have held top positions in the market for many years and are considered a trusted credit for many investors, include: DAMAC Properties, Emaar Properties, Sobha Realty, Nakheel and others. More detailed information about all developers you can find on this page.

Is it safe to invest in Dubai real estate?

According to global analysis, the property market here can be attributed to one of the most reliable, as it has been steadily growing over the past twenty years due to the inflow of capital and population.

Dubai's reputation for safety and stability makes it an attractive choice for real estate investment, with the potential for a stable annual rental yield of 5-7% in the local market. For busy lessors and foreign citizens who do not plan to live in the emirate, the best option would be to rent out housing and receive a regular income (even while in another country).

Thus, investments in the city become more profitable and reliable compared to other major cities. The market continues to grow steadily, while housing prices in this emirate are still significantly lower than in other regions.

What is the best type of property to invest in Dubai?

There isn't an ideal investment choice. The varieties of properties are similar to Europeans. Within the domestic real estate market, one can invest in apartments, townhouses, penthouses, and standalone houses. Simultaneously, investor preferences have evolved in line with the market. Despite the allure of certain areas, as of 2023, homebuyers have started showing increased interest in the neighborhoods of Business Bay, Dubai Marina, and Jumeirah Village Circle.

There are several types of housing in Dubai:

Apartments
Usually, it is a space with one or several bedrooms, a guest space, a kitchen (which can be separate or combined with the living room), and one or several bathrooms. The approximate distribution of apartments of various configurations in the market is as follows: roughly 17% are studios, 60% are one-bedroom units, 13% account for apartments with two bedrooms, 5% with three bedrooms, and with four bedrooms or more. The most budgetary, as elsewhere in the world, are studios, and the most popular are apartments with one bedroom, a guest area and two bathrooms. There are quite a few districts that offer decent options for affordable options, and one of these is Jumeirah Village Circle (JVC), which features around 110 residential complexes.
Penthouses
Houses of this type, located on the upper floors, belong to premium class housing. Penthouses are large in size (at least 300 sq. meters), often offered with decorated design and luxurious furniture, but their main advantage is the breathtaking views from the windows.
Villas
Villas can be situated in prestigious residential communities or along the coastline, offering private beach access. When you invest in a villa,you get the opportunity to have passive income reaching up to 6.5% annually. Additionally, you can benefit from potential resale gains due to rising property prices. With complete ownership of the property, you also enjoy the advantage of exemption from income tax.
When considering the optimal location for villa purchases, each area has its own advantages. Some are highly suitable for family living, while others cater more towards tourists. Notably, there are several popular options such as Emirates Hills, Dubai Silicon Oasis, Arabian Ranches, and DAMAC Hills. If your intention is to buy a villa for rental purposes, it's advisable to explore communities like Palm Jumeirah, Emirates Living, and Al Furjan. Based on recent findings from CB Richard Ellis (CBRE), as of 2022, the average price of a villa standed at approximately AED 12.57 million.
Townhouses
This housing option in the UAE is a budget-friendly alternative to a villa and is a fairly popular type of property at affordable prices. A townhouse is essentially a multi-story apartment structure, typically owned by several owners. Each individual townhouse has its street entrance and a small area in front of the house.

Can you buy property in Dubai?

Previously, foreigners were prohibited from owning real estate in Dubai, but now the laws of the country do not impose strict restrictions on foreign investors. Representatives of other states can freely invest in real estate in the United Arab Emirates.

So, for example, by investing more than 750 thousand dirhams ($205 thousand), you can get a residence visa for 2 years. The purchase of real estate in the amount of 2 million dirhams ($545,000) provides the opportunity to stay in the country for up to 10 years.

At the same time, in Dubai, foreigners cannot buy real estate everywhere. For this purpose, there are certain Freehold zones where they are allowed to own real estate without jurisdictional restrictions. These areas include: Palm Jumeirah, Downtown Dubai, Dubai Marina, Arabian Ranches, Jumeirah Village Circle (JVC) and Dubailand. The process involves submitting documentation, whether from an individual or a legal entity, followed by translation and notarization.

If you're purchasing a home on an individual basis, you'll need to provide various documents, including your passport and ID card, along with your contact information and evidence of your address (matching your current place of residence). If you are going to buy a building as a legal entity, in addition to the above documents, you will also need your company's registration certificate or trade license, its articles of association, certificate of activity, passports of all shareholders, a decision confirming the purchase, as well as proof of authority. All these papers must be translated into English and Arabic and notarially certified.

Conclusion

Due to its absence of taxation, swiftly expanding economy, well-established tourism sector, favorable pricing, and high-class experts, Dubai offers dependable, steady, and highly profitable investment prospects for both residents and internationals. By engaging in property investment in Dubai, you align yourself with the accomplished investors who have already capitalized on the nation's resilient market.