Global investors are increasingly attracted to the growing property markets in the UAE, especially in the Emirates of Dubai, Abu Dhabi and Ras Al Khaimah. Economic stability, pro-business initiatives, a safe environment, and high rental yields further contribute to other socioeconomic benefits, such as a tax-free income market and long-term residency visas.
As one of the best-performing real estate markets in the world right now, the UAE offers property investors a real opportunity to enjoy luxurious living and lucrative returns. However, buyers must plan their investment strategy to get the most value and achieve their goals.
- Focus on location - Buyers must look beyond the primary hotspots like Downtown Dubai and explore emerging neighbourhoods like Dubai South, Jumeirah Village Circle, and Yas Island that offer diversity, infrastructure upgrades, world-class amenities and attractive entry prices.
- Compare yields and demand - Popular free zones for overseas investors and renters, some of these areas offer lucrative rental yields of more than 6% to 8%.
- Tenant appeal - If earning consistent rental income is a priority, consider areas well-connected to Metro lines and other commute options. Lifestyle-focused facilities such as schools, malls, and hospitals should also be nearby.
- Furnishing - Well-furnished properties usually let faster than unfurnished units; therefore, getting your property furnished will help it perform better.
- Property laws - A thorough understanding of the legal requirements and official paperwork is necessary for successfully buying and renting a property in the UAE.
- Find the right agent - Partnering with a reliable and reputable estate and lettings agent is the key to success with property investments. From showing you the right properties that suit your investment goals to supporting you through the entire buying, letting, and sales process, your agent will assist you at every stage.
Most traditional property markets worldwide require investors and landlords to pay tax on rental income. However, the UAE's government does not levy capital gains or income taxes on property earnings. Furthermore, with a Golden Visa policy, investors and property buyers can secure long-term residencies for added value and security.
At Benham and Reeves, we offer various services to help overseas investors in the UAE find the right property and make the most of their investments.
So, contact us today if you are an investor seeking consistent returns, attractive capital appreciation, and the best lifestyle benefits by investing in an Emirate property.