Is It A Good Time To Invest In Dubai’s Real Estate?

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I was recently moderating a webinar about “Property Investment Trends in the UAE” – where attendees addressed some interesting concerns and shared real-life encounters. But one of the questions stuck out to me: “Is it really a good time to invest in Dubai right now?” I, along with other real estate advisors within the team, have been asked that question repeatedly. Won’t deny it. Determining the right time to invest is a challenge for amateur investors. Even the greatest real estate investors struggled to do so at a certain point in their life. 

Timing the market perfectly can be tricky, if not impossible. The best strategy for most of us is to try not timing the market at all. In fact, there is no such thing as the perfect time. The best time for you to start is now! One should ideally follow a strategic plan and invest as early as possible, just like smart investors do. So, in this blog, I will finally tackle the elephant in the room, once and for all by highlighting top aspects making Dubai’s property market a lucrative one right now: 

Lowest Price Bubble Risk

According to the UBS Global Real Estate Bubble Index 2021, Dubai’s real estate sector is an undervalued market and the only one classified in a lower category than it was the previous year. Essentially, Dubai’s rebounding market offers top-notch housing quality at prices exhibiting the lowest bubble risk – making it more appealing to global investors. Even the latest data released by Property Finder for Q3, 2021 demonstrate the total value of transactions reaching an all-time high of AED42.35 billion, breaking the record of UAE’s real estate sector. 

dubai - smartcrowd
UBS Index

Booming Tourism Sector 

Known for its exceptional hospitality sector, iconic attractions, and the government’s high safety measures, Dubai has become a targeted destination for tourists. Moreover, with Expo 2020 happening in Dubai, the government is expecting a prolonged positive effect on the tourism sector. Given the high influx of foreigners flocking to attend the event, Dubai will also witness higher demand for holiday homes. As a result, the increasing demand for short-term rentals along with Dubai’s attraction as a luxury holiday destination, and the Expo 2020 have all impacted the tourism sector overall – leading to a growing interest in Dubai’s ready properties. 

High Return on Investment (ROI)

Investors in Dubai can achieve higher yields compared to other mature property markets, despite the inevitable slowdown that happened due to Covid-19. According to property experts, Dubai’s real estate market is undergoing a fast recovery that will further stabilize the market and bring in a solid supply of residential houses to sustain the growing population. On the other hand, credible real estate investment platforms, like SmartCrowd, for example, offer properties at a significantly lower rate than that of the market, making it more favorable for investors looking after fractional property investments. In reference to our inaugural real estate market report, UAE’s real estate market seems promising and will definitely continue on an upward trajectory. So, seizing the opportunity before rent prices also pick up would ideally serve your portfolio. 

No Taxes in Dubai

Believe it or not, Dubai has zero annual property taxes or capital gains tax – making it the best place to invest. Once you buy a property, you won’t have to pay any additional taxes in the future. The UAE government is dedicated to making Dubai competitive across the globe by constantly introducing new constructive measures for improving the business environment, whether by the new visa amendments or 100% business ownership laws. In terms of the property market, investors enjoy flexible payment plans with moderate interest rates. So, with the extremely stable currency and favorable business regulations, Dubai offers foreign investors financial security in all aspects. 

The Bottom Line 

Geared towards astounding economic growth, Dubai is set to flourish in the coming years, which essentially attracts foreign talent and increases foreign direct investment. Meaning, more impressive development projects will continue to exist. With plenty of great investment opportunities available currently in the market at affordable prices, now is the best time to jump to buy a property in Dubai, whether through fractional investments or on your own.  

Disclaimer: I am not a financial advisor and so this blog is merely a subjective view of the current Dubai property market performance. Please perform your own due diligence and/or consult a financial advisor prior to investing, for every investment carries a set of risks.

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