Relocating to work in Dubai offers many benefits for doctors and other healthcare professionals. A tax-free salary allows you to save more for the future. Dubai is a very international and safe city, offering a good quality of life.The booming real estate market in Dubai also offers opportunities to invest in property.
Can expats buy property in the UAE?
Yes. Foreigners can buy property in the UAE. In Dubai, there are around 50 Freehold Zones in which expats can purchase freehold properties, including the rights to the land. In other areas, only locals are permitted to own the land but expats can still buy properties with leaseholds for 50-99 years
How is the Dubai Real Estate Market in 2023?
Dubai’s economy and population is steadily growing as people are attracted to come to live and work here. The introduction of the golden visa has also attracted a lot of wealthy investors. Based on data from the Dubai Center for Statistics, Dubai’s population, currently around 3.55 million, is expected to reach 6.2 million by 2040.
Building on a strong recovery following the COVID-19 pandemic, Dubai has established its status as a safe haven for investors amidst global economic uncertainty. The UAE Dirham, tied to the value of the US dollar, is considered to be one of the most stable currencies globally.
Dubai’s location as a strategic travel hub, great infrastructure, low crime rate, and year-round sunshine make it an attractive destination for tourism, hospitality, and real estate investment. The property market is well-regulated and has been acknowledged as the most transparent among countries in the Middle East and North Africa region.
These factors have led to exponential growth in the real estate sector. Between Q3 2021 and Q3 2022, residential property prices increased by 12% and rents by 19% on average.
Leading experts’ real estate market forecasts agree that property prices in Dubai will continue to rise. According to Knight Frank Consultancy, Dubai’s Prime residential market is set for the world’s strongest growth in 2023.
What are the benefits of buying property in Dubai?
The real estate market in Dubai offers a lot of benefits, with competitive property prices and massive potential for return of investment.
In the UAE, there are no annual property taxes and no taxes on rental income. Property owners do have to pay a monthly “housing fee” or municipality tax, and a 4% fee on property sales (usually divided equally between the buyer and seller).
Many expats buy a property to live in, not only saving on rental costs but providing an investment for the future.
Buying a property to rent out can offer superior returns on investment compared to popular cities such as London or New York. Gross rental yields are currently between 6-10% with an average return of 7.5%.
By investing in an off-plan property, buyers may be able to gain from lower prices and flexible payment plans.
Property ownership can also help expats to qualify for the UAE retirement visa, introduced in 2018, allowing them to remain in the country past retirement age.
Property investment is a great way to save for future needs and retirement, potentially offering much better returns than traditional pension plans.
