Smartest investment and life plans in UAE

Is Purchasing Property in Dubai a Good Investment?

By PolicyBazaar
  | Published: 17 January 2020 | Last Updated On: 19 January 2021

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Smartest investment and life plans in UAE

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Is buying a property considered to be a good investment in Dubai?
Are the investors in Dubai benefiting from their investments in property?

If I want to invest in Dubai, what are the benefits of a real estate investment

Do such questions strike your mind as well?

If yes, by the end of this thread, you are likely to get a step closer to the answer.

In order to get a clear picture of whether purchasing property in Dubai is a good option for you, it is essential to understand the basic reasons for buying real estate almost anywhere in the world. Of all the things we can purchase with money, real estate is considered to be the one that’s most precious.

Why Does One Buy Property?

Apart from the advice that our family passes down to us about owning a piece of land or our own house, there are many other reasons why people consider to invest in real estate.

There are different kinds of people – some save money for an entire lifetime in the hope of building their dream house, while there are some people who are wealthy and realize that investing their wealth in real estate may be their best option to secure and grow it as time passes by.

Regardless of the bucket that you take a dip in, dreaming of a home is timeless.

It is safe to say that people own property for multiple reasons such as for it to be a family home, as an asset in their investment portfolio, or as a holiday home.

Let’s further consider the above-mentioned reasons with respect to property investment in Dubai.

Property Investment in Dubai as a Family Home

With the high rental environment in Dubai, if you are living and working there you tend to feel outraged to make the monthly payments for rent. Which is why it is good to consider buying a property instead of renting one.

However, while buying a property as a family home almost anywhere in the world, there are a few things to consider, such as:

  1. Neighborhood: The priority while buying a family home for anyone is to buy it in a community and city that is family-friendly. Property investment in Dubai has been an ideal choice because of Dubai being a family-friendly city. Every community is well planned and equipped with public parks, leisure spots, supermarkets, etc.
  2. Cleanliness: Anyone thinking of raising a family thinks of a place that has high standards when it comes to cleanliness, and Dubai does not fail to impress us.
  3. Basic Infrastructures: Another important consideration is access to basic facilities. Everyone wants to raise a family in a community with easy access to education, healthcare, and other facilities. Dubai as a place makes sure to have it all.
  4. Security: The one place that will always have a place on the list of “most secure cities to live in” is Dubai. 

Property Investment in Dubai as a Holiday Home

There are many people out there who want to purchase a house as a holiday home. This is because this comes with a lot of perks, such as:

  1. Residence Visa: One of the main benefits of owning a holiday home in Dubai is that it can get you the residence visa. However, there is minimum value on the property value in order for you to qualify. If you are someone who is a frequent visitor, it can be advantageous to hold a residence visa.
  2. No Tax: Usually, when you buy real estate it means you will have to pay taxes on the property. The perk of making a property investment in Dubai is that you do not have to pay any taxes on the property.
  3. Weather: On most days, Dubai’s weather is sunny, with limited rainy days. For this reason, people love taking a visit to the city of gold over and over again. After all, who doesn’t love to visit the beach and soak the sun?
  4. Endless Activities: There are numerous activities to enjoy beyond just the pleasant weather, such as the malls, Burj Khalifa, and an endless number of other attractions. The nightlife buzz is an additional benefit for many.

Property Investment in Dubai as a part of an Investment Portfolio

Here we are, at the biggest reason why people purchase property in Dubai or for that matter in any part of the world. The biggest driving force for real estate purchases is to add it to one’s investment portfolio.

Buying a property in any place in the world, be it Dubai or not helps in securing your future. It is one of the best ways to store your funds and let them grow over time while enjoying other additional benefits. For instance, if you decide to rent the property you can enjoy an additional income from the rent you receive.

Here are some reasons which make it attractive to invest in Dubai in terms of purchasing a property.

  1. Less Costly: When you compare Dubai with the other real estate capitals across the globe, the prices for property investment in Dubai are significantly cheaper.
  2. No Property Tax: No matter which part of the world you choose for buying a property, you will have to pay property tax. However, Dubai is popularly known worldwide among the investors for the fact that there is no property tax payable against your property. This is the biggest benefit of being one of the property investors in Dubai.
  3. High Rentals: The rental yield in Dubai compared to other cities across the globe is high.

In a Nutshell

So the answer to your biggest question – “Is buying a property considered to be a good investment in Dubai?” based on all the arguments mentioned in the thread is – YES!