Reasons to Live in Dubai and Invest in Real Estate

Reasons to Live in Dubai and Invest in Real Estate

Knowledge
May 07, 2023

1. Strategically favorable location

Dubai is located on the coast of the Persian Gulf and borders Saudi Arabia and Oman. Due to its central location between Europe, Asia and Africa, the city offers excellent global connections: a third of the world's population can be reached within four hours by plane, and even two thirds within eight hours. This geographical position makes Dubai an attractive investment location for investors from all over the world - including many Germans.

2. Attractive rental returns

Rental returns in Dubai vary depending on the location and project and can be between 6% and 12% per year. These returns are particularly lucrative because no taxes are levied on rental income in Dubai. However, if you have a main or secondary residence in Germany, you may have tax obligations in Germany.

Dubai also offers long-term rental models with a minimum rental period of 12 months, which represents a stable source of income for investors.

3. Stable real estate market without a price bubble

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According to the Swiss bank UBS, real estate prices in Dubai are considered to be fairly valued - in contrast to many other international metropolises such as Munich, where there is a high risk of a bubble.

4. Excellent value for money

The real estate market in the United Arab Emirates is expected to grow at an annual growth rate of 3.03% between 2024 and 2028 (source: Statista). Demand is growing steadily, especially in the luxury segment.

Dubai also offers attractive off-plan properties with flexible payment plans. Often only 60% to 80% of the purchase price is due upon completion, and the additional purchase costs remain low. The 4% Dubai Land Department (DLD) fee is in many cases split between the buyer and the developer.

5. One of the safest cities in the world

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With a crime rate of almost 0%, Dubai is one of the safest cities in the world. In 2023, four cities in the United Arab Emirates were voted among the seven safest cities in the world.

6. Tax advantages for investors

Dubai offers 0% taxes on income, capital gains and rental income, which makes investments particularly attractive.

Since 2018, there has only been a 5% VAT, and since 2023 companies have been subject to a 9% corporate tax, with certain income and expenses exempt.

7. Strong population growth

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Dubai's population is growing continuously, which is further boosting the real estate market. The booming tourism and hospitality industry in particular is creating high demand for housing and investment opportunities.

8. Unique real estate projects

Dubai offers an impressive variety of residential and commercial properties, from luxurious villas and skyscrapers to green oases and water lagoons. High-class residential complexes and exclusive properties in particular attract wealthy investors from all over the world.

9. Strong economy and future security

Dubai is consistently committed to innovation and future-oriented investments in key sectors such as artificial intelligence, robotics, renewable energies and sustainable architecture. Thanks to long-term economic strategies and modern infrastructure, the city remains an attractive location for investors.

10. High quality of life

More than 90% of Dubai's population are expats who consciously choose the emirate. The reasons for this are the highest security standards, first-class healthcare, international schools, excellent restaurants, luxurious shopping opportunities, beaches and a wide range of leisure activities. Dubai is one of the most family-friendly cities in the world.

11. Cosmopolitan and multicultural society

Dubai unites over 200 nationalities who live together peacefully and can practice their religions freely. At the same time, the city preserves its traditional values and cultural roots, creating a unique mix of modernity and tradition.

12. International business and event hotspots

Dubai regularly hosts international trade fairs and conferences, including EXPO 2020. This makes the city a central meeting place for experts and companies from all over the world who want to exchange ideas about innovations and business opportunities.