1. Strategically favorable location

Dubai is located on the coast of the Persian Gulf and with access to the Gulf of Oman, the country borders Saudi Arabia and Oman. Dubai is also located between Europe, Asia and Africa and therefore has global connections, as 1/3 of the world’s population can be reached from there within 4 hours by plane, and 2/3 of the world’s population within 8 hours. Dubai is attracting more and more investors from all over the world, including many Germans.

2. High rental yields per year

Rental yields in Dubai vary depending on the project and location and can offer attractive yields of 6% to 12%. This corresponds to the net rental yield, as no taxes are levied on rental income in Dubai. However, if you have a primary or secondary residence in Germany, taxes may be levied in Germany.

Dubai also offers long-term rental models, for example for 12 months.

3. No price bubble on the real estate market

Unlike in many parts of the world, real estate prices in Dubai are still fairly valued, according to the Swiss bank UBS. In Munich, for example, there is a high bubble risk.

4. Outstanding price-performance ratio

According to Statista, the real estate market in the United Arab Emirates is expected to grow at a steady annual rate of 3.03% between 2024 and 2028, resulting in a market volume of US$ 0.80 billion in the latter year. In addition, there is a growing demand for luxury real estate as more and more investors and private individuals look for investment opportunities. Off-plan properties also offer interesting payment plans, such as 60-80% of the purchase price is due on completion and the ancillary purchase costs for off-plan properties are low, often the 4% Dubai Land Department (DLD) fee is shared between buyer and developer.

https://www.statista.com/outlook/fmo/real-estate/united-arab-emirates

5. Safest location worldwide

With a crime rate of almost 0%, Dubai is considered the safest location in the world. And in 2023 4 Cities of the UAE have been rated under top 7 worldwide safest cities.

6. No taxes on rental income

More and more investors are taking advantage of the tax benefits Dubai offers to increase their returns: 0% tax on income, capital gains and rental income.

Since 2018, there has only been a VAT of 5% and since 2023 a corporate tax for companies of 9%, although some expenses and income are exempt.

7. High population growth

Dubai is known for its booming tourism and hospitality industry. According to Statista, the population in Dubai is set to grow immensely. As a result, the real estate market is being boosted considerably.

8. Impressive real estate projects

With many different neighborhoods and attractions, green oases, lagoons or impressive skylines, Dubai offers a wide variety of investment opportunities, depending on investor preferences.

Especially impressive skyscrapers, luxury properties such as villas and first-class residential complexes attract wealthy investors and buyers from all over the world.

9. Business-friendly and safe for the future

Dubai is characterized by its strong focus on the future and is known for its master plan and investments in growth markets such as artificial intelligence, robotics and sustainability, green buildings, renewable energy and smart city concepts.

10. High quality of life

More than 90% of Dubai’s population are expats who choose the emirate because it offers a level of security and quality of life that is hard to beat anywhere in the world. The warm climate, countless cultural institutions, first-class restaurants and shopping facilities, great beaches and green oases offer opportunities for variety and relaxation. Dubai is also considered one of the safest and most family-friendly cities in the world and offers international schools, world-class hospitals and first-class services.

11. Open-minded and multicultural

Dubai has developed into a cosmopolitan and multicultural city. People from around 200 nations live here and all kinds of cultures meet, live together in a friendly way and can live out their religions. At the same time, Dubai also preserves and cultivates its cultural roots and traditions.

12. International exhibitions

Dubai regularly hosts international exhibitions and trade fairs, such as EXPO 2020, providing a place where industry experts and companies can meet and interact.