Why buying real estate in Dubai can really pay off?

 Are you looking for a good investment opportunity? Do you see your future in Dubai, or are you looking for a luxurious retreat where you can escape the daily routine in Germany and enjoy the luxury of palm trees, beaches and a unique atmosphere? Dubai offers a suitable solution for everything!

The advantages for real estate buyers

Good chances for appreciation

Are you still trying to earn a living with one type of income? With increasing workloads and inflation rates, it is becoming more and more challenging to survive in this economy. A single source of income is simply not enough anymore. Therefore, people are now investing more to earn an additional source of income or simply to save on taxes. However, the age-old dilemma is "where should you invest?". Well, the stock market, while offering numerous opportunities, also carries a great deal of risk. Therefore, investing your money in something that will increase in value over the year is wise. Buying real estate in Dubai is one such asset whose value will increase manifold, given Dubai's mature real estate market. Some reasons for this are:

Geostrategic location

Dubai is not only a tax haven but also a very central geostrategic location, as all major cities in Europe and Asia are within a 7-hour flight from Dubai. As such, Dubai offers many opportunities for international companies and business people, ranging from international conferences and events to newly opened locations that serve important international functions for their respective companies. An excellent example is the numerous well-known companies in the fashion industry that have set up shop in the Fashion/Design District near Downtown Dubai.

Real estate location with a future

Contrary to many prejudices, Dubai has become economically almost independent of oil and its revenues. Due to investor-friendly policies and its geostrategic location, the number of companies in Dubai is increasing. These are mostly large, well-known companies from Europe and Asia, which find not only tax advantages but also the high level and education of the German and foreign workforce. The growing demand for skilled labor has also created a corresponding demand for suitable housing, especially for long-term rent. Finally,

Finally, the luxurious, exceptional lifestyle and sustainable economic attractiveness create continuous growth and increasing demand.

Tourism

With unique attractions, numerous sights, and a growing number of famous events such as the Oktoberfest or the World Expo, Dubai attracts more tourists yearly. In 2019, more than 16 million people from all over the world visited this metropolis on the Persian Gulf, which combines modern Arab culture and Western values unique in the world to create a unique atmosphere. Tourism is booming, especially during the winter in Europe, and requests for short-term rentals have reached unprecedented levels.

Virtually no crime

Due to the high education level and prosperity of Dubai's population and the assertive judiciary, there is practically no relevant crime in Dubai.

Taxes

Dubai offers numerous advantages to property owners; for example, you do not have to pay income tax on your rental income in Dubai, and if you invest more than AED 1 million (approx. 225,000 €), you can apply for a residence permit.

Yield

Dubai offers a wide range of attractive properties - especially new buildings - with good construction quality and exceptionally high-quality facilities as in Europe. The offers vary from high-yield investment properties such as 15 Northside to exceptional luxury properties such as Atlantis - The Royal Residence.

As an investor, you can achieve a comparatively relatively high return of 4% to 10% depending on the type of rental (short term/long term), the target group of the tenant and, of course, the property's location. Since most investors are not based in Dubai, various service providers are offering different services to take care of the rental and management of your investment. Especially for short-term rentals, many investors also take advantage of the opportunity to simply use the property for their own vacation.

Regarding facilities, services and luxury, Dubai leaves nothing to be desired by its owners and residents. There are no limits, from small and simple apartments to over 1500 square meters of luxury lofts with their own infinity pool and views of the sea on one side and Dubai's skyline on the other.

Protection of your investment

The subject of protection and hedging is a central point in purchasing decisions, especially when it comes to foreign investments. While you are familiar with the legal situation in your home country, this often looks different abroad. Dubai offers property owners a very high level of legal security in terms of securing their properties and tenants not fulfilling their obligations. Property owners in Dubai are protected similarly to Germany by being registered in the Dubai Land Department (DLD) land register. This implies the purchase of the property is official, and your ownership of the property is adequately documented. However, when it comes to renting, the situation is quite different in Germany and Europe, admittedly in a positive sense. As a property owner in Dubai, you are better protected from defaulting tenants. Rental nomads, for example, are completely unknown in Dubai, and rent defaults are limited to a very short period, during which tenants must vacate their property and are evicted by the courts.

What you should consider before buying a property in Dubai

However, before buying a property in Dubai, it is vital to consider the dos and don'ts of the process. Buying a property anywhere in the world is a complicated and tedious process. And Dubai, unfortunately, is not free from all difficulties in real estate search and investment, although the metropolis is a unique real estate location with a future. But if you are careful and diligent, you can successfully execute your Dubai real estate investment and buying plan in no time. These are some of the tips that you should keep in mind while looking for real estate in Dubai:

Check your credit score before buying a property.

A credit score is a numerical expression of your financial credibility based on your payment history. It is based on a number between 300 and 850 and is calculated based on on-time debt repayments, prepayments and other relative payment histories. Poor payment history can significantly lower your credit score. A good credit score is essential if you want to invest in real estate in Dubai. It increases your chances, especially if you are a foreigner, and helps you get a substantial mortgage.

Decide on the location and type of property.

If you are a Dubai or UAE citizen, you can buy property in Dubai in almost all districts. However, if you are a foreign national, you can only buy property in certain districts, such as Dubai Downtown, Dubai Business Bay and Dubai's International Financial District, etc. Depending on your budget, you can choose between different types of villas, apartments and penthouses.

How do I buy a property in Dubai?

Buying a property in Dubai can bring a lot of hassles if done independently. Therefore, it is always better to hire a real estate agent.

Risks

Of course, it should not be concealed at this point that Dubai also harbors risks and pitfalls that must be considered when buying real estate. We will be happy to advise you and find suitable properties for you.