In the heart of the Middle East, Dubai is now positioned as a major hub for global real estate. The city has an impressive dynamic. With innovative projects, a thriving economy and an exceptional quality of life, Dubai is undeniably on the rise. The city has risen to the top of the global real estate scene, becoming a veritable Eldorado that attracts investors from all over the world. This futuristic metropolis, emerging from the desert sands, has transformed its cityscape into a real estate paradise. Real estate in Dubai is not experiencing a crisis. Indeed, all the indicators are green, contrary to the situation in Europe at the moment. Since January 1, 2023, the number of sales recorded in Dubai has increased by 40% compared to the year 2022. So, what are the reasons for this success?
Dubai's miraculous transformation
Once a small fishing port whose beating heart was the districts of Al Fahidi and Deira, Dubai has become the city of the future. It was Sheikh Rashid bin Saeed Al Maktoum who gave the impetus to transform Dubai. But it was his son and heir, Sheikh Mohammed bin Rashid Al Maktoum, who truly shaped the city as we know it today. A visionary, he gave impetus to ambitious projects that never ceased to expand Dubai and impress visitors from all over the world.
Thus, the construction of Dubai has become one of the most fascinating narratives of modern urban development. Stunning skyscrapers, man-made islands and large-scale projects such as the Burj Khalifa, the world's tallest tower, are testament to Sheikh Mohammed bin Rashid Al Maktoum's dream of making Dubai the most attractive city in the world.
Sustained and prosperous economic growth
Dubai has stood out for its sustained economic growth over the past few decades. The successful and prosperous diversification of its economy from dependence on oil to sectors such as tourism, trade, and technology has created a conducive environment for real estate investment.
One of the key factors in Dubai's attractiveness to real estate investors is its economic and political stability. The city has become a major financial center, providing a business-friendly environment. Pro-business policies and the absence of income and property taxes are attracting entrepreneurs and businesses from all over the world. The extremely advantageous tax policy for investors is therefore, a major asset of Dubai. This highly attractive legislation offers a much higher net profitability than in many countries where the burden of taxes significantly reduces returns.
As a result, investors can keep more of their gains. But also to have more leeway in their wealth development and diversification strategies.
Real estate in Dubai: a booming market
Dubai offers exceptional diversity when it comes to real estate. From luxurious beachfront properties to ultra-modern apartments and traditional villas, there's something for everyone. Whether you're looking for a vibrant urban lifestyle or an oasis of tranquility, Dubai has a real estate offering to suit every taste.
At the same time, pharaonic real estate projects in Dubai continue to push the limits of what is imaginable. From artificial islands in the shape of palm trees to integrated housing complexes, the city is constantly innovating. These projects are not only architectural marvels, but they also redefine the standards of luxury and comfort.
In addition, real estate investors enjoy attractive returns in Dubai. Demand continues to outstrip supply, especially for well-located properties and quality projects, creating a competitive market.
Finally, policies favourable to foreign investors have helped to stimulate the interest of international buyers. Indeed, full ownership for foreigners has been allowed for more than 20 years. At the same time, the purchasing process has been simplified as much as possible. It is now possible to become the owner of an apartment or villa in Dubai in just a few hours. In addition, the average yield on a rental property is between 7 and 12% depending on the type of property and the rental method. You should also know that short-term rentals are allowed in Dubai and that unpaid bills are almost non-existent. All of this obviously reinforces Dubai's position as the new global real estate Eldorado.
Innovative and ambitious real estate projects
Dubai is famous for its breathtaking skyline, with iconic skyscrapers such as the Burj Khalifa, which holds the world record for the tallest tower. Bold architectural projects continue to emerge, constantly redefining the cityscape and attracting global attention.
Real estate developments in Dubai are not limited to imposing structures. Many integrated residential communities offer a complete lifestyle, with parks, shopping malls, schools, and recreational spaces, creating unique urban ecosystems.
In addition, real estate developers in Dubai are offering unprecedented payment plans. Zero bank interest, payment of apartments over several years; and this, without having to go through a bank and apply for credit. This is a combination of very advantageous conditions and very attractive prices. Indeed, the price of housing per m2 in Dubai is much lower than in large cities such as Paris, London, or New York. It costs an average of 4000 per m2 in a luxury residence offering additional facilities such as swimming pool or gym near the Burj Khalifa or the beaches. By doing the math, it is possible to buy a 40m2 studio in Dubai for around 160,000 Euros. Expect to pay less than €500,000 for a villa with three or four bedrooms. All these parameters contribute to the attractiveness of real estate investors for Dubai.
A quality of life that is second to none
Dubai is a true cultural mosaic, welcoming residents from all over the world. This cultural diversity creates a vibrant and cosmopolitan atmosphere, making the city an attractive place for those seeking an international experience.
At the same time, the quality of life in Dubai is very high. The city is synonymous with luxury and everywhere you go, you get the best service possible. From gigantic world-famous shopping malls to Michelin-starred restaurants and private beaches, the city offers an upscale lifestyle that appeals to a wealthy clientele. In Dubai, you can find absolutely anything you want.
In addition, Dubai is considered to be one of the safest cities in the world. And for good reason, its crime rate is very low or almost non-existent. This is an added bonus for real estate investors and those who want to settle there.
The future of Dubai real estate
Dubai is increasingly committed to sustainable development. The new real estate projects incorporate green technologies and green initiatives, positioning the city as a leader in sustainable construction.
In addition, Dubai's Vision 2040 aims to transform the city into a smart, sustainable and connected place to live. This opens the door to new investment opportunities in areas such as real estate technology, renewable energy and smart infrastructure.
The Government of Dubai recently revealed its 2040 plan. It's a very ambitious project. Indeed, the stated objective is to make Dubai the best city in the world. This is in line with Sheikh Mohammed bin Rashid Al Maktoum's vision for his people and all residents of the country to have access to the best. The government's goal is to double its population in the next 15 years. New neighbourhoods are being developed, such as Dubai Creek Harbour, Palm Jebel Ali, Jumeirah Village Circle or Expo City.
The Government of Dubai has the means to achieve its ambitions and it must be said that all of its visions have been successful so far. So it's a safe bet that Sheikh Mohammed Bin Rashid Al Maktoum will also succeed in this one.
To conclude, Dubai, with its vibrant energy and ever-changing landscape, is undeniably a major player on the global real estate scene. As the city continues to surprise the world with its futuristic plans and rapid economic development, investors around the world remain captivated by the opportunity offered by this vibrant metropolis. With a thriving economy, cutting-edge real estate projects and an exceptional quality of life, Dubai is on the rise and has become the new Eldorado of real estate. However, investors should remain alert to potential challenges and engage in diligent steps to ensure the success of their investments in this futuristic desert city.
