One of the world’s fastest growing cities, Dubai is the hotshot destination of the Middle East with aspirations to be a top three global city for quality of living and commerce.
There are many reasons to considering buying property in Dubai. For instance, the city’s low taxation and deluxe lifestyle are attracting increasing numbers of international investors, including high-net-worth individuals and professional expats.
All of this is driving a property boom – here are six facts about buying getting a piece of the action.
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Record year
Bucking the general trend globally, 2024 is turning out to be a record year for the Dubai property market. Transactions, prices and new project launches are all hitting new highs.
The effects of accessible visas, low taxes and exciting financial opportunities make Dubai one of world’s most attractive destinations for high-flying expats, VIPS and investors, all of which is driving demand.
Sales completed in October hit 20,000, the emirate’s highest ever in a month and 82% up from October 2023. Mortgage transactions also rose 3.2% month-on-month to their highest levels yet, according to data provider Property Monitor.
Dubai is one of world’s most attractive destinations for high-flying expats
In October, average prices were at AED1,473 ($401) per square foot, nearly 20% above the previous all-time high and market peak a decade ago.
Leading Dubai agency Allsopp & Allsopp reports that Britons dominate the foreign market, accounting for 20%, followed by Indian (8%), Canadian (5%), French (4%) and Turkish (3%).
Many of Dubai’s off-plan homes offer ultra-modern style
Off-plan in overdrive
Developers in the emirate are battling to keep up with demand. Off-plan sales currently dominate the market, accounting for 70% of transactions in Q3 2024.
In October, nearly four times as many new units were launched as were completed, said a report by Allsopp & Allsopp. The same month saw 48 new project launches, creating 15,000 units and bringing the total number of new-to-market units to more than 100,000 across 343 developments.
Communities attracting the highest number of off-plan sales include Jumeirah Village Circle, Dubai Hills Estate, Dubai South, Sobha Hartland II and Motor City.
Much of the demand is in AED1 million to AED1.5 million ($275k-$410k) ‘affordable luxury’ price range, serving middle-income end-user occupiers and buy-to-let investors.
Rental rocking it
Dubai’s rental market is equally strong on all levels. The emirate topped international property specialist Savills’ Prime Residential World Cities Index for rental value growth for the first half of 2024. It was ranked 5th for capital value growth.
“The Dubai residential market continued its dream run in the first six months of the year, with record-breaking transaction volumes and values,” confirmed Andrew Cummings, Head of Residential Agency at Savills Middle East in an article accompanying the report. “On a price per sq ft basis, Dubai continues to offer immense value to investors and end-users looking for high-quality, luxurious homes with attractive amenities. Coupled with the lifestyle and connectivity that the emirate has to offer, Dubai continues to be one of the most coveted destinations in the world to live in.”
Allsopp & Allsop reported a 64% rise in new listings for October, adding that the apartment sector is especially bullish with a 24% rise in rental transactions compared to September. Their average apartment now lets for AED145,428 ($39,500) a year.
Current hotspots for apartment lets are Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay and Jumeirah Village Circle. Britons form the largest group of tenants, followed by Indians, Russians, Germans and Lebanese.
New homes offer luxe ways to shelter from the sun
Visas – golden or retirement?
Much of the recent foreign interest in Dubai has been driven by the introduction in 2019 of the United Arab Emirate’s golden visa, which a 10-year residency by investment visa.
In short, buying a property, or properties, in Dubai worth at least AED2million ($550,000) in cash, or having equity worth that amount if you have a mortgage, should qualify you for the visa.
Foreign property ownership is tightly regulated in most of the UAE, but Dubai is more liberal
A golden visa-holder can sponsor spouses and family members to reside with them in Dubai. Alternatively, you can deposit AED2million in an eligible Dubai bank. Another less permanent option is the 2-year investor visa, which requires a lower value property investment of AED750,000.
If you’re over 55 years of age, buying a property in Dubai worth at least AED1million ($275,000) in cash, or having equity worth that amount if you have a mortgage, should entitle you to a retirement five-yearly renewable visa there.
Another qualifying option is proof of an annual income of AED180,000 ($49,000) or savings worth AED1million in a 3-year fixed deposit.
While foreign ownership of freehold property is tightly regulated in most of the UAE, Dubai has a more liberal approach. This is thanks to the emirate’s special designated areas where there are no restrictions on foreign citizens owning freehold. These include some of the most prominent locations, such as Downtown Dubai, Dubai Marina, and Palm Jumeirah.
