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Is Buying Property in Dubai a Good Investment?

Posted by Kelt&corealty on May 22, 2024

Known for its deluxe lifestyle, thriving economy, beautiful skyline, and robust infrastructure, Dubai has become an exciting place for investment. Each year, it welcomes millions of visitors, including tourists, businessmen, and entrepreneurs, who come to enjoy its lavish lifestyle, find a living place, seek employment, and expand their businesses. Amid this, Dubai is developing rapidly.

From the vibrant urban landscape to unparalleled skyscrapers to waterfront communities offering stunning views, Dubai has everything. It has become a sensational city that caters to the needs and desires of every individual. No matter whether you want to settle or start your business journey, Dubai offers a plethora of opportunities.

Understanding The Real Estate Sector Of Dubai:

Dubai has established its reputation as a prime destination for real estate investment. The property sector of the metropolitan city offers numerous investment options. The development of ambitious urban projects, the use of cutting-edge technologies and modern strategies have fostered the growth of Dubai’s property sector, attracting local and foreign investors. 

Is Buying A Property In Dubai A Good Investment?

Certainly, real estate investment in Dubai is deemed a lucrative investment as it offers promising returns to investors. The strategic location of Dubai and favorable policies have developed a thriving property market that not only attracts local but foreign investment. The government has established favorable tax policies for real estate investment.

There is no income tax and capital gain tax in Dubai, allowing investors to take advantage of favorable policies. Along with that, it is a regulated real estate market that is overseen by departments such as the Dubai Land Department, making it a safe and secure place for investment.

Why To Consider Dubai For Real Estate Investment:

Dubai’s property sector has a lot to offer. Investors generate significant ROI by investing in Dubai’s real estate sector. No matter whether you invest in off-plan properties or are ready to move into properties, you can make a profit out of your investment. 

Booming Economy

Dubai’s economy is expanding rapidly. Investment-friendly strategies have turned it into a thriving global business hub. Its high-end offerings, world-class amenities, tax-free environment, and political stability have boosted its economic growth, paving the way for real estate investment and attracting investors from all over the world. 

Modern Developments

Dubai has developed several renowned projects, such as Burj Khalifa and Palm Jumeirah. It is known for outstanding, high-quality construction. Developers here create innovative and sustainable real estate projects. People who want to invest in luxury properties should consider Dubai because it is known for luxurious developments.

Growing Population

The population of the city is growing rapidly. This city has experienced a significant influx of both local and foreign residents.  The high standard of living, thriving economy, and peaceful living environment incite people to choose it for their living destination. This population growth has sparked the need for more residential and commercial real estate, making it a favorable place for real estate investment.

Freehold Ownership

Dubai’s government has also allowed foreign nationals to purchase properties and enjoy complete ownership rights in Dubai. Yes. Expats can also buy properties in Dubai. The government has developed several specific areas called freehold areas or zones where non-locals can invest and have complete ownership rights and discretionary powers over their purchased properties. This initiative allows foreign nationals to promote their real estate businesses, generate profits, or find places to call abode.

Return On Investment

Dubai’s real estate sector offers a stable and high return on investment. The prime purpose of investment is to generate profit out of any investment. The property sector of the metropolitan city normally offers 5% to 8.4% yearly returns. The favorable policies of the government and the interest of foreign investors are increasing the prices of properties, leading to a significant increase in ROI. 

Capital Appreciation

The value of the property increases over time, leading to high ROI. Dubai’s property market is quite competitive. The number of people interested in its property sector is growing, increasing the demand for real estate and leading to capital appreciation. If you purchase an apartment or villa, property prices will increase over time.

Documents Required To Buy Property In Dubai?

The following documents are required to purchase a property in Dubai. An investor must have the following documents regardless of whether he wants to buy a ready-to-move-in property or an off-plan apartment. 

  • Passport and Visa
  • Proof of Income
  • Bank Statement
  • Purchase Agreement
  • Identity Proof of seller
  • Original Title Deed
  • NOC from a developer or previous owner

Factors To Consider When Buying Property In Dubai:

Undoubtedly, real estate investment offers a plethora of advantages. You can generate profit via rental income and also resell your purchased property. However, to make a prudent decision, you should consider the following factors when buying property in Dubai.

  • First of all, you need to clear your vision about the duration of your stay in Dubai. If you want to stay for a short period, you can seek a rental option. However, if you have long-term plans, then consider buying real estate in Dubai.
  • Define your affordability. Affordable housing means your monthly housing expenses should not exceed 30% of your salary. This parameter will help you find the most suitable option.
  • Consider other expenses as well, such as the Dubai Land Department fee, registration fee, real estate agent fee, mortgage fee, etc.
  • Evaluate a property to assess whether its rental income will be sufficient to pay related expenses such as mortgage and maintenance expenses.
  • Do not ever ignore the importance of location when buying a property. Choose the most convenient location. Firstly, it makes the property easily accessible, and secondly, a property located at a prime location generates high ROI.

Evaluate the condition of the market to make favorable deals.

Summing Up:

Dubai’s property market is growing exponentially mainly because of favorable tax policies, high-end offerings, advanced lifestyle, cutting-edge technologies, capital appreciation, and diverse investment options. Investors can find a range of investment options, starting from off-plan projects to townhouses, apartments and villas. Both commercial and residential investment in Dubai is deemed profitable because of value appreciation and high ROI. Off-plan property sales are increasing because of the lower initial deposits and high-value appreciation upon project completion. 

Want To Explore Dubai’s Real Estate Market? Let Us Walk You Through This Process:

Kelt & Co Realty assists people interested in buying and selling real estate in Dubai. Understandably, real estate investment is not a child’s play. It involved a number of complicated processes. However, Kelt & Co Realty’s professionals make this process easy for you. Our experts find the most viable investment option based on your interests and make real estate deals favorable for our clients. 


Is it worth owning a property in Dubai?

If you are wondering whether it is a good idea to invest in Dubai’s property sector, then the right answer is yes. Owning a property in Dubai is a lucrative investment. It offers a plethora of advantages. Whether it is a residential or commercial property, you can generate significant returns through rental income and value appreciation.

Can you own 100% property in Dubai?

Yes. You can own 100% property in Dubai. Expats can purchase a property and have complete ownership rights in some designated areas called freehold zones. These are specialized areas where the government of Dubai has allowed foreign nationals to buy and own property. All sorts of properties can be purchased and owners in these specific areas.

Where can I find cheap properties in Dubai?

Several neighborhoods, such as Jumeirah Village Circle (JVC), Jumeirah Beach Residence (JBR), Discovery Gardens, Dubai Investment Park (DIP), and Dubai Silicon Oasis (DSO), can be considered to find cheap properties in Dubai.

How long can you stay in Dubai if you own a property?

Once you have bought a property in Dubai, you can apply for a residence visa that is valid for up to 2 years. However, if you still own the property and visit the country once every 180 days, this residence visa will be renewed. 

Can a foreigner get a mortgage in Dubai?

Yes. Foreign investors can get a mortgage in Dubai, UAE. Though it is possible to get a mortgage if you want to purchase real estate in Dubai, you just need to follow the set criteria. You need to have been in your current job for at least six months or a year, based on the area where you intend to buy real estate.


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