Dubai is an unforgettable experience, particularly for the people hunting for a global investment hub or ideal homes. As the real estate market is among the biggest aspects of the economy, purchasing high-end properties in the city is an attractive choice for high net worth individuals throughout the world.
An increasing number of global citizens hailing from various nationalities prefer Dubai as their second home. Many of them view it as a flawless place to purchase properties for investment.
What are the factors that make the city an attractive real estate investment hub, and how can we compare it to other global cities? With the introduction of the city’s long-term visa for real estate investors, lots of perks exist for people buying luxurious properties.
But if you are wondering why the city is the best place to own luxurious properties, lots of factors come into play. In this article, we will be sifting through these factors to discover the reasons why Dubai is the best place to purchase opulent homes as opposed to the rest of the world.
1. Affordable Luxury
First of all, this city guarantees unbeatable value for upscale real estate. Since the foreign homeownership was enabled in 2002, Dubai is a comparatively new entrant in the realm of global high-end property hubs. The Emirate boasts luxurious real estate projects to cater to the elite class.
Even with the normalized opulent lifestyle, the city is still affordable. Regardless of the fluctuations in the real estate market, posh residences are more affordable than in other prominent global cities. Knight Frank Report observed the upscale property worth $1 million that could be purchased in key luxury destinations throughout the world.
For $1 million or AED 3.6 million, the following can be owned:
- Hong Kong – 237 square feet
- Singapore – 388 square feet
- New York and London – 334 square feet
- Monaco – 172 square feet
- Geneva – 441 square feet
Even cities like Sydney and Paris provide less than 620 square feet of posh property on the same budget. But Dubai offers twice as much by giving you 1,539 square feet at $1 million. Even if the city is new to the game, it’s home to superlative developments that often surpass the standard of other major global cities.
Dubai is unique due to the unparalleled portfolio of excellent properties. This affordable luxury isn’t only restricted to the cost as high-value commodities like petrol and gold are always competitively priced.
A high standard of living is guaranteed by gardeners, nannies, and more. Home cleaning services are 20% cheaper than global cities, and nowhere else can you get petrol delivered without an additional cost. Visit luxuryproperty.com to know more about properties in Dubai.
2. Easier to Buy
The ease of doing business with the real estate market is another important factor. Aside from the reputation of being a haven for upscale properties, the taxation and laws are investor-friendly. Plus, the city is a thriving business hub in the region.
Expat investors in Dubai primarily take advantage of the income-free tax, capital, and the absence of extra levies on property purchase. Whether you prefer an investment or personal use, the real estate transactions will be swift and to-the-point.
This is an undisputed perk when compared to other cities in the world that suffered from rapid property tax reforms. Foreigners are taxed higher on purchase. The Emirate’s healthy ROI, increasing living standard, and stable population growth make buying posh homes seem like a perfect investment. Furthermore, it’s easier to gain a home loan.
3. A Thriving Market
As per the data collected by DLD, the real estate market transactions in 2019 surged up to 33%. Not only this, there was a prominent increase in cost per square foot of high-end properties, hinting at the piqued demand for these properties.
The same growth was observed in the H1 Dubai Property Market Report for 2019, in which the investors flocked towards top-tier properties in Palm Jumeirah, Downtown Dubai, and Arabian Ranches.
The UAE was ranked one of the 5 countries preferred by millionaires. Being a financial hub, it’s the most suitable migrating destination for rich foreigners. A high influx of HNWIs brings important wealth, where most of it is invested in the city’s prime real estate market. There are tons of well-equipped residential ventures in Dubai such as Mohammed Bin Rashid City and Dubai Hills Estate.
4. The Ideal Location
A reason for the growing charm of Dubai is the perfect location. The Emirate offers the best of both worlds to the businesses – the west and the east. Its time zone is extremely convenient for businesses that wish to expand in the world, providing them a center point to match the timing between the east and west.
Aside from this, the location guarantees global connectivity in terms of travel. A 2 to 8 hour flight can land you at a prominent city in Europe, Asia, and the Middle East. Pair all this with the permanent real estate visa, and you will understand the urge behind an investor or business to pick Dubai.
5. Freedom of Choice
Although there are numerous important reasons working for Dubai’s favor, its most appealing offering is the versatility of prime properties. From fully serviced apartments to lush villas and top-notch penthouses, the portfolio of luxurious properties can’t be found anywhere else.
The huge choice spectrum is really praiseworthy as investors can pick the preferred property type, area, and the cost they wish to pay.
Best Places in Dubai to Buy Luxurious Apartments
Jumeirah Bay Island, Downtown Dubai, and Palm Jumeirah are the most famous areas to purchase luxurious apartments in Dubai. The upscale properties in Downtown Dubai, with the cost per square foot of $596, are the most popular among investors.
Afterward, Palm Jumeirah and Jumeirah Bay Island with their respective cost per square foot of $1,189 and $918 are more impressive options among HNWIs hunting for posh apartments. Other noteworthy areas are Dubai Marina and Bluewaters Island.
Best Places in Dubai to Buy Luxurious Villas
Emirates Hills, The World Islands, Palm Jumeirah, and Jumeirah Bay Island gains the most interest. One can buy lush villas at an attractive cost in Emirates Hills for as cheap as $459 per square foot, whereas Jumeirah Bay Island is the most expensive choice with cost per square foot of $1,032.
The cost of luxurious villas for sale can surge to $41 million based on the amenities and configuration. Above-mentioned areas generate an average ROI of 3%, while Jumeirah Bay Island rakes the most with 4.3%. Other praiseworthy areas are Al Barari, Mohammed Bin Rashid City, and Arabian Ranches.