Buying property in Dubai is one of the most reliable ways to preserve and grow your capital, especially in the luxury real estate segment.
In January 2023, impressive data for the previous year was published. According to the latest report by the Dubai Land Department (DLD), the total property sales volume in this city reached AED 265.6 billion (over USD 72.3 billion) over 12 months, a historic high for the megalopolis’s real estate market. Property sales in general increased by approximately 78.3% in monetary terms and by 62% by the number of transactions. Notably, the value of transactions with homes in luxurious locations surged by 97%, while the number of deals rose by 85%.
There are many areas where you can buy freehold property and have full private ownership rights. These areas include:
This is not a complete list of locations, as many city areas are now freehold, allowing non-residents to buy property.
Dubai features many properties of various configurations to suit any taste. Here are some of the most popular options:
In 2024, the average property prices in Dubai have seen a notable increase due to high demand and strategic investments. The price range for real estate varies depending on the type and location.
Apartments in Dubai start at approximately AED 1.3 million (USD 354,000), with high-end units in prestigious areas such as Downtown Dubai and Palm Jumeirah potentially exceeding AED 8 million (USD 2.18 million). For villas, starting price is approximately AED 2.8 million (USD 762,000), with higher-end prices reaching up to AED 127 million (USD 34.5 million) for luxury villas in exclusive areas such as Palm Jumeirah.
Dubai real estate is a reliable and secure asset that offers investors stable and high returns. The average return on investment (ROI) in Dubai for long-term rentals is 5-8% per year; in some areas, it can exceed 10%. For short-term rentals, ROI can reach 11-13% per year, with a specialized property management company handling tenant search and selection.
The United Arab Emirates also attract investors with a flexible taxation system. No income tax is levied on physical persons in the UAE, which means that a landlord can legally pocket the entire amount of their dividend and rental income.
Another investment option is to purchase property in Dubai at the construction stage and sell it once the project is completed. Capitalizing on property value appreciation in Dubai can yield a profit of 20-30%. Sales of luxury properties in Dubai priced at 37 million AED (10 million USD) reached a record high in 2023, increasing by 63% compared to 2022. However, the number of listings in certain areas has decreased, leading to higher prices and increased demand for exclusive properties.
Experienced brokers at AX CAPITAL, a real estate agency in Dubai (UAE), will find a high-quality property for living and investment that meets all your requirements and handle all the bureaucratic formalities involved in the transaction. To receive a consultation on purchasing real estate in Dubai, UAE, simply fill out the contact form.
