Dubai has undergone a breathtaking transformation over the past 30 years. The economy is booming, the economic outlook is excellent, and according to the UBS Global Real Estate Bubble Index, the real estate market in the emirate has one of the safest ratings worldwide. High returns coupled with low entry prices make Dubai, the ‘city of the future’, one of the most attractive real estate markets globally for investors.
Dubai has changed dramatically over the years, evolving from an oil-dependent economy into one of the most diversified economic hubs in the world. Driven by grand visions, the emirate is on a relentless pursuit of extraordinary economic growth. Within the next decade, Dubai is aiming to become one of the top four global financial centres and the most important global business centre. In line with these ambitious goals, the population is predicted to double over the next 15 years, which will naturally lead to more demand for real estate.
As a beacon of innovation, Dubai is committed to continuous progress. The emirate actively supports new ideas and technologies to maintain its position as a leading hub for innovation. Dubai doesn’t rest on its laurels. The people and the government here think and act differently. There is hardly a service that isn’t available through an app. Routine official tasks can be completed online, the metro operates autonomously, and you can even buy a property entirely online. The advantage of this is that you don’t need to be physically present in Dubai.
In Dubai, rental prices are very high in relation to property prices. Compared to other cities globally – or even to Switzerland – real estate prices in Dubai are extremely attractive. Depending on the project and location, rental yields of up to 10% (net!) are realistic. Another major advantage for you as an investor is that rent is usually paid annually in advance.
According to the Swiss bank UBS, Dubai is one of the few major cities worldwide where real estate is still fairly valued. But a booming market doesn’t mean you should just dive in. Choosing the right project is crucial to the success of your investment. We are here to guide you with professional, expert advice – completely free of charge.
Dubai offers a very high level of legal security for property owners. You enjoy a similar level of protection as in Switzerland, since ownership is registered in the land registry at the Dubai Land Department (DLD). You are the full owner and can bequeath, resell or rent out your property as you wish. Dubai’s property market is highly regulated and governed by strict laws. Developers and projects are registered, certified and approved by the Dubai government. The rights of landlords and tenants are crystal clear to protect both parties.
Dubai is virtually a tax-free country, with no income tax, no wealth tax and no tax on capital gains or rental income. The current VAT rate is a modest 5%, and real estate transactions are even exempt from VAT. The only tax in the real estate sector is a 4% property transfer fee, while the notary fee is only around CHF 1,000. In our consultation, you will learn what tax aspects you still need to consider if you live outside Dubai.
The dirham of the United Arab Emirates has been pegged to the US dollar for over 20 years (US$ 1 = AED 3.67), which means minimal fluctuations, depreciation or exchange rate losses. This offers an excellent opportunity for you to diversify your investment portfolio.
Dubai is one of the safest cities in the world. Its very low crime rate is mainly attributable to strict laws and robust law enforcement. Factors such as prosperity, education, cultural diversity and tolerance also contribute to the overall safety and stability of the city.
Situated at the crossroads of Asia, Africa and Europe, Dubai has evolved into a major hub for international trade. With almost 6 billion people reachable by plane in just 8 hours, the city offers unparalleled access to some of the world’s fastest-growing markets. A third of all Fortune 500 companies have their Middle East and Africa headquarters in Dubai. Moreover, the city has a unique entrepreneurial spirit. Dubai is where individuals of all nationalities and backgrounds come together, driven by a shared desire to make things happen.
To apply for an investor visa (a two-year residence visa), you need to have invested a minimum of AED 750,000 in a property. Those investing at least AED 2 million can apply for a Golden Visa, which is valid for 10 years. If you have any questions about visa eligibility and types, we will be happy to advise you.
Book a free, no-obligation consultation to learn more about Dubai and the various investment opportunities it offers.
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