Real estate market in Dubai is developing at a very fast pace. Off-plan projects in the UAE are being announced every day.
Let’s see what is the current state if the market and how is it developing.
1. New real estate in Dubai
The most accurate economic indicator of the development of the residential and commercial real estate market in the UAE is statistical reports published 2 times a year by the Emirates Department of Economic Development (DED).
In a July document from one of the previous years, published by this organization, there is information about almost 25,000 licenses issued for registration in the emirates to national companies and international business structures interested in investing in Dubai, who will start construction in 2022-2024, in which it promises foreign investors profits several times greater than European exactly the same indicators.
Bur Dubai continues to be the most active investment area in the country, followed by Deira and New Dubai in descending order of attractiveness.
The largest new buildings in Dubai are concentrated in these business clusters of the emirates.
Among the most active investors who are attracted by construction in the city are companies and businessmen from regions neighboring the country:
- Saudi Arabia
The leading group also traditionally includes investors from the UK, the US and China, France, Egypt, Russia, who are interested in such areas of capital investment as new construction, trade and the center of the city.
2. New buildings in the UAE – fiction or reality
Foreign investors have begun to invest more in real estate in Dubai. The growth of investment in new buildings in the UAE during the first half of 2021 in the UAE real estate market amounted to almost USD 800 million.
The Land Department of the country announced this in its August report. The total indicator of 27,600 contracts related to the acquisition of land and real estate amounted to USD 30.2 billion for the period from January to July 2021.
This investment flow was distributed as follows:
- Direct sales of land and real estate USD 10.9 billion
- Mortgage deals USD 15.7 billion
- other investments USD 3.6 billion
And in 2022, the figures are already much higher. Not much time has passed, and the results of the United Arab Emirates are increasingly impressive.
Developers in the UAE are increasing the pace of construction and improving the quality of development. The segment of business, premium properties for millionaires and billionaires is actively developing.
Dubai holds the undisputed title of the most innovative metropolis in the Gulf region.
The authorities of the capital of the emirates have made a huge amount of effort over the past 7-8 years to ensure that it has become the smartest city in the Middle East.
The city’s innovative infrastructure has already generated more than a billion dollars in savings. There will be more in the future, and you are well aware of this.
The Department of Economic Development of the Emirates planned that all new buildings in 2018, 2019 together will exceed half of the gross national income of the UAE by the beginning of 2021.
But in 2022, these figures have already been significantly exceeded. As you can see, investing in new buildings in Dubai is very profitable and promising.
3. Developers in Dubai – technology in everything
Analysts attribute the increased business activity to the liberalization of the visa regime for foreigners, the simplification of business rules in all sectors of the UAE economy, and the minimization of tax deductions paid by developers.
So, today visas to investors who invest serious sums of money in the country’s economy are issued for up to 10 years. And an electronic license on a special website can be issued in 5 minutes.
One of the most serious financial incentives to invest in the real estate market of the UAE is considered to be the maximum reduction of VAT by the authorities of the emirates, which developers in the UAE are required to pay to the country’s budget.
Now its size is only 5% of the amount of the investment contract. When your home country is not the UAE, such conditions seem very valuable.
Another reason for today’s investment boom in the Emirates is the existing tax incentive in the form of no tax on capital gains of companies whose activities fit into the concept of developers.
Interest in the segments of business, premium development, VIP and luxury new buildings is growing steadily.
In the context of regular growth in the value of real estate of all kinds in the UAE, this is a significant advantage for investors, which not only the development companies of the UAE are in a hurry to take advantage of.
4. Property for sale in Dubai
Emirates.Estate website has a high-quality database of residential and commercial real estate in Dubai and allows you to quickly and efficiently resolve any issues.
According to your criteria, the specialists will select the required properties as they carry out a constant analysis of trends in the real estate market in Dubai, cooperate with developers, direct sellers and tenants.