Property in Dubai- transactions in Dubai
The greatest activity is noticeable in the real estate segment from USD 250,000 to 500,000, specified in Metropolitan Premium Properties. Dubai has long been attracting international investors from all over the world. However, over the past 2 weeks, the audience has increased its activity several times. Let us have a look at some of the reasons why this is happening. If you want to find out about cost of apartments in Dubai the UAE you can check out Ax Capital agency, because they have all the latest information about the real estate market.
Reasons behind the popularity- transactions in Dubai
The Dubai real estate market is very active. According to the DLD, there were nearly 75% more transactions in January 2022 with a 145% increase in total transaction value compared to the same period in 2021. There were 15% more real estate transactions in January 2021 than in January 2020.
This is largely due to the fact that the Emirates in 2021 became one of the first countries to open for tourism, which greatly increased the flow of tourists to the country in general and to Dubai in particular. Investors from all over the world actively invested in local real estate, receiving passive income from renting out.
Over the past two weeks, demand from buyers for real estate in the UAE has increased several times. The greatest activity is noticeable in the real estate segment from USD 250,000 to 500,000, the number of transactions made by the agency in this segment has increased four times.
Foreign real estate has been popular in recent years both as a profitable investment asset and for personal purposes. Dubai has become one of the most popular destinations due to:
- its extensive investment opportunities,
- favorable business conditions
- and tax advantages for transactions in Dubai .
The UAE is constantly stimulating investor interest with new initiatives. Thus, in order to attract foreign capital and human resources to the country, in 2019, local authorities established an immigration program that provides an opportunity for wealthy foreigners to obtain a residence permit (residence permit), or a “golden visa” for 10 years, when buying real estate worth more than AED 5 million in transactions in Dubai .
Potential ROI on real estate are high and have not changed over the past two years (5-6% on average), especially when looking at branded luxury residences where demand currently outstrips supply.
The loudest and most sought-after of them are:
- The Royal Atlantis,
- Bvlgari Resort & Residences,
- W Residences Dubai,
- Ritz Carlton residences,
- Six Senses Residences,
- Mr. C Residences (Cipriani),
- Louvre Abu Dhabi Residences,
- Address JBR,
- Address Beach Residences,
- St. Regis Residence,
- Fairmont Marina Residences (Abu Dhabi)
- and Dorchester Collection.
What is remarkable is that despite the fact that prices range from USD 1.5 to 80 million, many of the properties diverge at the stage of closed sales, especially when it comes to exclusive villas and penthouses in the ultra-luxury segment.
Additional nuances
The authorities also allowed to register a business in Dubai for foreign investors – previously it was impossible and for most activities in the UAE, the participation of a local partner with a share of at least 51% was required. The innovation has made the processes even simpler and more transparent, opening up room for maneuver for an audience ready to expand the boundaries of their own business. Flexibility with regard to applicable law attracts many investment and holding companies: a number of free economic zones offer the possibility of redomiciliation of companies from other jurisdictions and allow the application of British common law.
It should be noted that demand has grown not only for purchases, but also for short-term rentals, including in the luxury real estate segment.
Real estate agency in Dubai
The fact is that there are so many attractive options in any of the segments that customers are lost without qualified assistance. Especially those who arrived in the country for the first time and are little aware of the nuances of the market, which certainly exist. So many of the properties sell out at the stage of closed sales, especially when it comes to exclusive villas and penthouses in the ultra-luxury segment. Ax Capital has an extensive portfolio of villas, penthouses and plots of land in the best locations in Dubai, which are not exposed to the public and are presented only to verified buyers upon request after due diligence.
It is wise to contact specialists to check the information received regarding both the history of the project, information about profitability, the reliability of the developer and the progress of construction, as well as any legal nuances associated with the transaction. This is the only way to buy a truly liquid property, which will rise in price and bring the promised income from leasing or resale.
Do you want to find and buy property in Dubai? Contact the specialists of the Ax Capital agency: their experts will select a number of suitable offers for you. If necessary, they will fully accompany the transaction and help with paperwork.
