Dubai is one of the most beautiful cities in the world, and it keeps getting more beautiful. In recent years, the world has turned its attention to this lovely city, and are keen to be a part of the Dubai experience.
For high net worth individuals (HNWIs) around the globe, acquiring luxury property in Dubai seems like the way to go. This is because the real estate industry has become a strong aspect of Dubai’s economy.
Those who are just finding out about the prospects of Dubai’s real estate may ask – what makes Dubai the best place to buy luxury homes?
Well, there are many good reasons to consider, and in this article, we will be looking at quite a number of them.
What Makes Dubai The Best Place To Buy Luxury Homes?
As the years go by, the number of foreigners who have relocated to Dubai has increased. Some see it as a second home, and some have moved there permanently with their families.
Let us get into the reasons why Dubai has become an excellent option for HNWIs to acquire luxury homes.
Affordable Luxury Quotient
You may not know this, but Dubai offers the best value for luxury property in comparison to other major cities around the world. Keep in mind that foreign real estate ownership in Dubai started in 2002, meaning Dubai is basically a newcomer to the world of global luxury property destinations.
The lifestyle in Dubai may be luxurious, but the property there remains affordable. According to recent wealth report, luxury homes in Dubai are significantly less pricey than those in other major cities worldwide.
This report analyzed the luxury residential property worth USD 1M (AED 3.6M), which an investor can buy in significant luxury cities around the world.
From the findings of this report, with $1 million Dollars, you can buy the following properties –
- Monaco – 172sq. Of luxury property
- Hong Kong – 237 sq. Ft of luxury property
- London – 334 sq. Ft of luxury property
- New York – 334 sq. Ft of luxury property
- Geneva – 441 sq. Ft of luxury property
You may be surprised to know that even cities like Shanghai, Sydney, and Paris offer less than 620 sq. Ft of luxury property for the exact same amount of money.
You would be more surprised to know that Dubai offers as much as 1,539 sq. Ft of luxury property for the same budget. This equals a price as low as $650 Dollars per sq. Ft
You may assume the low cost of prime property in Dubai means lower standards of buildings, but that is far from the truth. Dubai boasts of some of the best building structures in the world and can be matched with other top buildings anywhere else.
Dubai has an unparalleled portfolio of luxury properties, and this gives interested buyers the advantage of vast choice options.
Bear in mind that property isn’t the only thing that’s fairly priced in Dubai, other high worth commodities like petrol and gold are also cheaper compared to the prices in other cities.
Property owners in Dubai get excellent value for money, even in the areas of home maintenance. Cleaning services in Dubai are 20% cheaper than in other top cities. Also, you can get petrol delivered to your home by unnoticeable extra costs.
It Is Easier To Buy Luxury Property In Dubai
Another reason why Dubai is the best place to buy luxury property is the ease with which the transactions are done. Dubai has very investor-friendly laws and tax systems. Foreign buyers benefit from the income-tax-free system in Dubai, as well as the nonexistence of additional charges on property purchase.
It doesn’t matter if you’re buying luxury property in Dubai for business or personal use, rest assured that the transaction processes are simple and hassle-free.
This is an advantage the city of Dubai holds over other major cities like London and Paris, considering the major property tax reforms these cities have gone through, which includes levying the additional tax for foreigners on the purchase of prime properties.
Property in Dubai also gives you a high return on investment (ROI), thanks to its rapid growth in population and a rise in living standards.
Thriving Real Estate Market
According to the DLD, real estate transactions rose to 33% in 2019 alone. The demand for luxury properties led to a noticeable rise in the price per sq. Ft for prime properties. This rise was also shown in the H1 Dubai Property Market Report of 2019. Here, investor interest was more focused on high-brow buildings in Downtown Dubai; Palm Jumeirah am the Arabian Ranches.
According to a recent market study by the New World Wealth, the UAE was named as one of the top 5 countries preferred by High Net Worth Individuals. Since Dubai is the financial center of the UAE, it is only natural that HNWIs preferred investing there. The presence of HNWIs means an increase in wealth influx, which is re-invested in Dubai’s prime real estate market. These investments have led to the birth of communities like the Dubai Hills Estate and Mohammed Bin Rashid City.
The Geographical Location Of Dubai
Another factor that makes Dubai a good option for purchasing luxury property is its geographical location. Dubai’s time zone is very convenient for businesses that have global interests, as it serves as a center point to match both the times of the East and west.
Its location also makes it easier for businessmen to travel. A 2-8 hour flight can get you to Asia, Europe, and the Middle East.
Keep in mind that Dubai offers long-term real estate visas to foreign investors, so it’s a perfect option.
Vast Property Options
Last but not least, another good reason to buy a luxury property in Dubai is that it has a wide variety of property options you can choose from.
They range from luxurious villas to fully-serviced apartments and lavish penthouses. No other city in the world offers such property options.
Recommended Areas To Buy Luxury Property In Dubai
Dubai is a great option for luxury property investment when compared to other prime cities in the world. It has world-class infrastructure, and it’s a very safe and peaceful city.
If you’re an investor or high net worth individual, then you should consider investing in luxury property in Dubai, that’s if you’ve not already done that.
We hope this short guide was helpful, if interested to learn more about investing in Dubai’s real estate market, feel free to get in touch with one of our real estate experts to get a free real estate consultation.
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