When it comes to global real estate, Dubai is at the top of the most-wanted list. From record-breaking , to raising standards in innovation and luxury, to September鈥檚 highly anticipated premiere of (the first international version of the hit series), the entire world continues to be captivated by the allure of Dubai 鈥� and foreign investors are capitalizing on it.
As Dubai鈥檚 economy and population have continued to rise, so has the influx of foreign real estate investors from all over the world, including Canada, India, the U.K., Russia, Germany, France, and even the U.S. Luxury real estate is the new , and a safe and lucrative platform for investors looking to diversify their portfolios. This makes Dubai鈥檚 luxury real estate market an enticing asset for foreign real estate investors to consider.
So how can foreign investors benefit from buying a residence, vacation home, or investment property specifically in Dubai鈥檚 luxury real estate market? In addition to its strategic location, strong economy, and government-backed initiatives, there are many other lesser-known advantages for property buyers to capitalize on. We鈥檝e narrowed it down to three surprising ways foreign investors can benefit from investing in Dubai鈥檚 real estate sector.
1. Low Price Per Luxury Square Footage & High Capital Appreciation
When considering the in the global luxury market, foreign real estate investors get the most space for their dollars in Dubai.
For instance, $1 Million USD can score 1,130 square feet of luxury Dubai property, as compared to only 355 square feet in New York, 366 square feet in London, and 689 square feet in Miami. Coupled with the potential of greater than 10% in capital appreciation per year 鈥� more than most cities 鈥� investing in Dubai is a win-win.
2. Robust Average Rental Returns
It鈥檚 been reported that Dubai鈥檚 property investors can expect to see around 7-9% long-term rental returns and between 12-15% short-term returns, with ultra-luxury areas gaining up to 35% short-term rental returns.
Another factor driving high rental returns is Dubai鈥檚 tourism sector, which contributes to the great demand for vacation rentals. In fact, Dubai has been crowned the by the TripAdvisor Travelers鈥� Choice Awards for the past two consecutive years. Lastly, rental resources like Airbnb are not restrictive, allowing homeowners the full renting benefits.
3. Incredible Tax Breaks
Dubai is a 鈥渘o-tax鈥� emirate. For real estate investors, this means there are no property taxes on homes. Since there is no property tax, it positions Dubai as a the second least expensive city to live in, tax-wise.
In fact, the only tax associated with the purchase of property is a one-time 4% charge based on the transaction鈥檚 value at the point of sale, which is made to the , the government agency that oversees Dubai鈥檚 real estate sector.
Do you have any inquiries about the current luxury real estate markets in Dubai and coastal California? Schedule a call with us to learn more about our portfolio of properties.
Don鈥檛 miss this real estate investment opportunity 鈥� connect with me for more information!
GG Benitez
DRE# 01487964
+1 (619) 339-7978
GGBenitezInternational.com
