Tall skyscrapers, many offices of large companies in the world and a huge flow of tourists speak of its development and prospects. Owning property in Dubai means being successful. Should I buy an apartment in Dubai and what should I do with it?

The rapid development of Dubai began shortly after the establishment of the United Arab Emirates in 1971. At that time, there was not a single high-rise building in the city. Today Dubai is a modern metropolis with a multinational population of more than 3 million people. The world’s tallest skyscraper, the Burj Khalifa, dominates the cityscape, while a palm tree-shaped artificial island off the coast can be seen from space.

The tourism industry in Dubai is constantly evolving, and the recent EXPO 2020 has further cemented the city’s status as one of the world’s major metropolitan areas.

Is it important to own property in Dubai?

Having an apartment or other objects can always bring profit. This is an excellent investment, especially in a promising city that is very popular (one of the most visited cities in the world).

What are the benefits of buying an apartment? Firstly, it is the possibility of regular rest near the sea, without a constant search for places in the hotel. There are also a few other important things to note:

• obtaining a residence permit or visa when buying an apartment in Dubai

• renting out real estate and making a good profit.

Having your own apartment, you can get an excellent passive income from renting it out to tourists or other foreigners living in the UAE. Moreover, the city is constantly being built and there will be no problems with buying an apartment. You can invest in construction and in a couple of years get real estate in a respectable area. Moreover, the developers offer long-term interest-free installments, and in some cases, the payment of part of the cost of the apartment after the delivery of the house.

Reasons to invest in Dubai

There are a number of reasons why you should buy an apartment in Dubai. Among them, we highlight the main ones:

• the government is doing everything to attract investors and foreigners;

• no real estate taxes, including purchase or sale. It is enough to pay the registration fee (for example, in Hong Kong the tax is about 15%);

• minimum expenses for the purchase of real estate in Dubai: the amount of funds that can be used to pay taxes in Dubai will allow you to buy an apartment with a larger area;

• high return on investment. The city is in great demand, and therefore the minimum income from buying an apartment and renting it out will be 5-5%, in more respectable and tourist areas, profit can bring 10-15% of income. Moreover, you can always sell it: there are a lot of people who want to buy real estate in Dubai, especially if you buy real estate under construction and sell an already finished object;

• now buy an apartment as profitable as possible.

If you look at the UBS Global Real Estate Bubble Index, then the Dubai market is very undervalued and there is no “bubble” recorded in this city.

After 7 years of falling house prices, Dubai’s housing market has recovered to a nominal price increase of 10% between mid-2021 and mid-2022. However, the market has now only returned to its 2019 price level and is still 25% below its 2014 peak.

Moreover, the government of Dubai has created a concept for the development of the emirate until 2040.

Alternative to buying an apartment in Dubai

Buying an apartment and then renting it out also has disadvantages: you need to keep order and regularly carry out repairs after tenants. However, there is an alternative: buying hotel rooms in the city.

Many hotels are selling rooms to attract investment for the construction of facilities. You can rent them out after and receive passive income without unnecessary problems in the form of repair and replacement of furniture. Everything will be supervised by hotel employees. You will only have to receive passive income in the form of a percentage of the room rent.