Invest in Dubai’s Real Estate 2024

Let’s start the new year on a high note. We are already expecting major social and political changes that can topple the balance of economies and turn the tide. For some it could be for the better, and for others it could be for the worse.

So, if you’re an investor who’s looking to start the year strong, you have come across the right source of information. Today, we’ll be discussing why you should invest in Dubai’s real estate in 2024.

But first, let’s give you a starter on why you should invest in Dubai’s booming real estate sector. Dubai is a business hub with a robust and thriving economy home to a wide array of business activity. Thus, the current economic state of Dubai is a great reason to invest ,either to make a capital gain, or to secure a source of rental income.

Numbers from the Dubai Land Department (DLD) show us that transactions worth 1.86 billion AED have taken place during the seventeen day period from 1st-17th january. Thus, we can see that the year is already off to a good start in Dubai.

But first, let’s look in depth at the reasons that make Dubai a good choice for investing in property in 2024. 

Why Should You Invest in Property in Dubai in 2024

There are many reasons why Dubai is the best place to invest in property in 2024. Here are the reasons. 

1. Strong economic growth

As we mentioned before, Dubai’s economy is going on a robust and booming trajectory. This means that people have a higher standard of living and more disposable income for additional needs. As a result, they are more likely to invest in buying property. Thus, investors have a better chance of selling at a premium for a capital gain and receive better rental rates.

This is evident by insights from reuters. In 2022, Dubai’s economy expanded by 4.4%  after the Co-vid era. A further growth of 3.6% was seen in the second quarter of 2023. Thus, we can see that Dubai is on a path toward perpetual growth, which is a good indicator when it comes to investment, because it shows that people are continually investing in the country, leading to a rise in commerce and an increase in disposable income. 

2. Investor-friendly regulations

One of the major reason for a boost in the country’s investment are investor friendly policies.  As an investor in Dubai, you are not required to pay any capital gains tax and wealth tax, which is a  plus point.

These regulations clearly indicate that there is no stake on your wealth as an investor in Dubai. So, whether you profit from selling property,or receive rental income, you don’t need to pay a stake to the government. Consequently, the income you generate is your’s to use only. 

3. Competitive property prices

Another good reason to invest in the real estate of Dubai are the comparatively low prices. The baseline studio apartment in the United States costs anywhere between $120,000-$140,000. If you consider converting this into AED, this goes to 477,477 AED.

On the contrary, the price of studio apartments in Dubai starts from 277,000 AED. Thus, we can see a difference of almost 40% less, as compared to prices in the United States. Another indicator that validates Dubai’s competitive prices is the fact that the prices mentioned above for apartments in the U.S are for 400 Sq Ft apartments, whereas the price mentioned for the apartment in Dubai is for a 700 Sq Ft apartment. Therefore, we can see a major difference which is a win-win situation for those looking to invest in Dubai.

Thus, it’s clear that Dubai is a golden opportunity for investors who are looking for a budget-friendly investment.

Now that we know the three reasons why you should invest in Dubai, let’s look at some of the options that you get. 

Investment Options in Dubai’s Real Estate Market

Real estate provides various investment options including various freehold areas in Dubai, depending on your budget and preferences. Let’s take a look at them. 

1. Studio apartments

If you’re looking for a quick and budget-friendly investment option, then studio apartments are the right choice for you. The area of a studio apartment typically starts from 277,000 AED and goes all the way up to 2,250,000 AED. The prices vary, depending on the area and the location of the apartment. 

2. Multiple-bedroom apartments 

If you’re looking for an investment that provides more room as compared to a studio apartment but also doesn’t deviate too much from your budget, then multiple-bedroom apartments are the right option for you.

You’ll find apartments ranging from one-bedroom apartments to all the way upto three, or four bedroom apartments. The price tag for multiple bedroom apartments starts from 730,000 AED, and tops all the way to 5,150,000 AED. The variation in price is based on the location and the covered area of the apartment. 

3. Townhouses

If you’re looking for a spacious area with multiple floors, then townhouses are the right choice for you. Townhouses are multiple floored accommodations linked to one another through common walls. However each townhouse has its own door. Nevertheless, some townhouses might share some aspects of the properties, such as a communal garden. Thus, if you’re looking to step into the world of multiple floored accommodations then townhouses are a good investment. The price for townhouses in Dubai ranges from 12,00,000 AED and goes all the way to 6,000,000 AED. Once again, the prices vary, based on various factors, such as the location, the amenities being offered, number of rooms, and covered area. 

4. Villas

Similar to townhouses, if you have a seven-digit investment budget, then villas are another option that you can explore when looking to invest in Dubai’s real estate. So, how is a villa different from a townhouse?

Villas are mostly detached accommodations within a separate walled compound. Moreover, as compared to townhouses, each individual owner is responsible for the maintenance of their property as villas don’t have a homeowners association that deals with maintenance issues.

So, if you’re looking to invest in a high-end accommodation that yields a higher return, then villas are the right choice for you. The yearly rental for villas ranges from anywhere between 105,000-650,000AED. Thus, it is a good monthly return, depending on the area where your villa is located. 

5. Office accommodations

Dubai is also host to various office accommodations. Areas such as Business Bay are the best for investment in office accommodations in Dubai. Office accommodations in Dubai start with a price tag of AED 6,50,000 and end at a price tag of AED 1,735,000.

The yearly rental income for these offices ranges between AED10,500 and AED 960,000, depending on the covered area and the location of the office.

Now that we have learnt about the places to invest in Dubai, let’s look at the methods that you can use to finance your investment in Dubai. 

How to Finance Your Investment in Dubai 

When it comes to financing, there are many options available in Dubai. You can either get a loan or a mortgage from a bank, or you can also go for Islamic financing if you’re looking for Sharia compliant solutions.

But that’s not all. In fact, some developers also provide enticing finance options to attract more investors. For example, you can make an initial down payment and then pay the rest of the amount in instalments.

More ways to buy property in Dubai are the rent to own and lease to own methods. Both methods are almost the same with the exception of the change in the purchase clause. In a rent to own scenario, you have the option to purchase the property after the ending of your tenure as a tenant. However, in case of a lease to own scenario, you are obligated to buy the property upon completion of your tenure. Which method you opt for depends on your ability to arrange the needed finance.

Hence, if you’re wondering about where you’ll arrange the finance from, don’t worry. Dubai’s banks and developers provide various options for you.

Now, time to revisit what we have learnt throughout this blog. 

The Takeaways

Dubai is a land of opportunity for investors. The country’s booming economy and relaxed tax structures are a promising situation as it guarantees maximum return on investment without being answerable to the government.

There are many property management companies in Dubai which offer various types, such as multiple bedroom apartments, townhouses, villas, and office accommodations.

You can buy property in Dubai either through banks, finance options available from developers, or rent to own, and lease to own options.

Thus, you have multiple property types and financing options, when looking to invest in real estate in Dubai.