Market timing refers to strategic investing; making buy and sell decisions by anticipating price trends. Dubai\'s real estate market has matured over the years, once known for its flash-in-the-pan grandiose mega projects many changes have begun to take shape in the region. This includes government-led movements like investment in infrastructure and long-term residency schemes. With a growing economy, an expanding number of investors are dipping their toes in the Dubai real estate market. We have compiled an overview of the macro trends.
1) Central Location - Dubai is becoming ever more connected with more flights and links. Etihad Rail, UAEs National Rail Network started operating freight trains in early May 2023 with passenger trains to follow. The city\'s central location a six-hour flight to and from most major cities in the east and west has made it a meeting point and strategic location for travelers and business professionals.
2) Expanding City - New developments, roads, and government initiatives welcome the growing expat population. Ambitious projects and plans have no signs of slowing.
3) Growing Economy - Once reliant on oil and gas revenues, the Dubai government has diversified the economy into sectors such as hospitality, retail, and logistics. Making it more resilient to global economic shocks, as its handling of the global Covid pandemic has demonstrated.
4) High Standard of Living - Dubai is home to top-ranking schools and exceptional entertainment venues. The cosmopolitan environment is much loved by high-net-worth individuals and is very accommodating to those seeking a luxury lifestyle. This is only growing as evidenced by more and more luxury properties selling and more high-net-worth individuals relocating.
5) Safety & Security - Safety and security have become synonymous with the UAE. A speedy legal system means that disputes and property damage can be dealt with efficiently, as assets are well protected. With a growing population, this standard has been upheld.
6) Visa and Immigration Benefits - The UAE is very open to expats who come for work purposes. The recently implemented 10-year Golden Visa scheme has established a long-term residence plan for highly skilled workers.
7) Tax Incentives - The UAE is known to have very favorable tax conditions. No personal tax, capital gains, or wealth tax. Most importantly, There is no tax on residential properties on the sale date and no recurring property taxes.
8) Stable Exchange Rate - A stable exchange rate supports long-term growth and prevents sharp fluctuations, especially for investors. The local currency, the Emirati dirham, officially abbreviated as AED is tied to the US dollar, one of the most stable currencies in the world.
9) Political Stability - For decades, Dubai has been a safe haven for those from the MENA region. During conflicts like the Russia-Ukraine war, Dubai has proven welcoming and hospitable to those looking to relocate.
10) Low Price - Compared to London and other major cities, Dubai has reasonable property prices. An average apartment in Dubai costs AED 1.5 million compared to AED 5 million in London. A lower barrier to entry, and cheaper for those looking to start out slowly.
11) High Investor Returns - Dubai real estate has a high return on investment. Holding up to lucrative markets like California and Paris. Investors typically see a 7% ROI reaching double digits in some cases, many top cities have a 2-4% ROI.
12) Easy Buying Process - Investment and foreign investment is highly encouraged by the government, unlike in some countries. The new ‘Instant Sale’ feature allows for foreign investors to buy property without stepping foot in the country.
13) Regulated Market - Laws protect investors\' interests and assets. There have been more initiatives like the residential sale index, that have come out to create more transparency in the market.
14) Innovative Real Estate Offerings - With so many new builds, including designer collaborations, ultra-luxury properties, and highly speculative properties\' buyers are spoiled for choice.
15) Huge Rental Demand - There are many expats coming and out of the city. Property
ownership is low amongst expats so the rental market is strong and rental housing is in
demand.