Dubai is currently considered the hottest real estate market in the world. In an interview, a leading representative of a Dubai real estate developer explained the opportunities and risks for international buyers, including those from Germany. In the interview, the real estate expert explained that Dubai’s reputation for offering only expensive and ostentatious properties does not correspond to reality. The decisive factor is the feeling of living and the design of the room, not expensive materials. It’s about how life feels in the property, from the kitchen to the bedroom. Buyers would only have to bring their furniture, and the rents for such properties would be 25 to 35 percent higher than in the neighborhood. Buyers come from all over the world. Since the company was founded in 2014, it has acquired customers from 206 countries. Different nationalities characterize the demand in waves. Initially, buyers from the Gulf States dominated, later many came from China, and currently people from North and South America are also moving to Dubai. Germans, French, Italians and Chinese are always strongly represented. Several factors are driving people to Dubai. Low taxes, no property tax and the prospect of political stability all play a role. Before the pandemic, Dubai attracted people with its safety, great lifestyle and good infrastructure. In the meantime, the government has improved the healthcare system, which is also attractive. The city offers restaurants and other amenities around the clock, which attracts many people. Geopolitical crises also influence demand. People look for safe havens in times of crisis, and Dubai offers this security. Real estate can be purchased not only for personal use, but also as an investment for renting out. Yields vary depending on the location and type of property, but range from five to six percent in central locations to 13 to 15 percent for vacation homes. Dubai offers various attractive residential areas. In addition to well-known districts such as Downtown and Palm Jumeirah, areas such as Maydan and Jumeirah Village Circle are also becoming popular places to live. Investing in Dubai is comparatively easy. Buyers only need a copy of their passport and a credit card to purchase a property. Personal attendance is only necessary for the final takeover. Payment is often made in installments, although credit financing is prohibited for off-plan purchases (properties that have not yet been completed). Only around 20 percent of buyers take out mortgages. Most properties are sold off-plan, i.e. before completion. Turnkey properties are only offered in exceptional cases. Despite the boom, there are projects where there is hardly any progress. This is partly due to government decisions on market regulation. The aim is to avoid oversupply in order to maintain the boom. In the long term, however, there could be market corrections, as real estate markets are cyclical. The low taxes in Dubai are an incentive for many Europeans. Even if the government introduces an income tax, it will probably remain low. After the financial crisis at the end of the 2000s, Dubai heavily regulated the real estate market. Developers have to finance projects entirely themselves and can only withdraw customer funds during the construction phase, which provides greater security. Overall, the real estate market in Dubai remains attractive for international investors, even if future developments and possible corrections remain to be seen.
Probably the most lucrative real estate market in the world
