Dubai has recently emerged as a prominent location for foreign investors looking to buy vacation residences and long-term rentals. Indian nationals currently top the list of buyers of real estate in Dubai by nationality, with the top 5 investors including those from the UK, Italy, France, and Russia.
According to Dxbinteract, in the first half of this year compared to the first half of 2021, the number of Russian buyers increased by 164%. France and Britain had increases of 42% and 18%, respectively, while Italy and India saw decreases of 8% and 17%, respectively.
A survey by Reuters reported that Russians are actively pouring money into real estate in Dubai in search of a haven for their money, after the western sanctions on Moscow over its invasion of Ukraine.
Geopolitical unrest in Europe and mortgage buyers attempting to lock in deals ahead of anticipated interest rate increases boosted demand for real estate in Dubai.
So, why are European and Russian investors interested in Dubai Real Estate?
Despite the fact that Europeans have traditionally led the Dubai real estate market this year, we have noticed a notable surge from Western nations, especially France and Italy. Western European nationals are buying up luxury properties in Dubai that are ready for sale, particularly in well-known communities like Downtown, Palm Jumeirah, and Dubai Marina. Here are a few reasons why:
Due to visa limitations, European real estate investors were previously relatively hesitant to invest in Dubai buildings. More flexible and investor-friendly regulations have been put in place recently, such as the long-term Golden Visa, making it simpler than ever to invest in Dubai.
This in particular has changed the game because it gives international buyers 100% ownership of their home or business in the UAE coupled with a 10-year residency without a national sponsor. Given that they can now be granted a resident visa if they make a minimum investment of AED 1,000,000 for a freehold property, as long as the property is ready and not mortgage, this is expected to attract more investors from Western European countries over the coming years, including Italian and French nationals.
Additionally, foreign investors in UAE real estate can now receive the golden visa straight from the real estate developers.
Economic & Political Stability
Due to the geopolitical situation in Europe, investors are moving their operations—or possibly their entire operations—to Dubai. How come? Dubai’s economy is quite stable, and it is strategically located.
In the meantime, Italy’s and France’s primary currencies, the Euro, have declined. The dirham, the indigenous currency of the United Arab Emirates, has been linked to the dollar since 1997, preventing any financial losses brought on by exchange rate changes.
Despite this, French and Italian investors stand to gain from Dubai’s steady real estate market since it provides protection against declining currencies like the Euro.
Investors might likely profit from capital appreciation as a result of a strengthening dollar-pegged dirham in addition to transferring their money into Dubai real estate, provided that the federal reserve maintains its aggressive monetary policy.
Greater Return on Investment (ROI)
Investment properties in Dubai offer rental returns that are normally above 6% on average, even reaching double digits in top Dubai locations, in contrast to major global markets like London, New York, or Hong Kong.
For Italian and French investors, it is a lucrative experience because this is rather outstanding compared to yields offered in its counterpart cities, which normally do not reach 3-4%. Additionally, the typical rental returns in France and Italy are 2.79% and 3.92%, respectively.
News: What Factors Have Led to Dubai’s Economic Success?
Real estate in Dubai is currently in strong demand, which enables investors to set higher rental prices and sell their homes quickly, providing faster liquidity than traditional real estate investments back home. Investment properties may produce a sizable capital gain for investors given that Dubai property prices are still rising.
The absence of a property tax in Dubai is another thing that makes the city stand out in the eyes of Italian and French investors. Foreign investors investing in Dubai don’t need to worry about taxes because they are exempt from annual property taxes, income taxes, and capital gains taxes.
This is so because owners only pay the one-time property transaction fee and registration costs when purchasing a property, not ongoing taxes. This makes Dubai a more advantageous investment location because investors can rent out buildings and pocket their tax-free profit without worrying about additional expenses.
Properties in Dubai that may attract French & Russian Investors
Palm Gateway by Nakheel
The Palm Gateway will be a waterfront residential and entertainment complex with three high-rise structures housing 1,265 opulent apartments with one to three bedrooms. There will be a tonne of dining, shopping, and health and exercise amenities at the site, including parks, pools, and sports fields.
The Palm Gateway will also have its beach club and park, a shaded, landscaped complex with a diverse range of waterfront dining and shopping options, a pool, barbecue areas, and fitness facilities, including a jogging track. It will have panoramic views of the Palm Jumeirah, the Arabian Gulf, and some of Dubai’s most well-known landmarks.
Address Bay by Emaar
Emaar Properties‘ latest development, Address Residences The Bay, offers 1, 2, and 3-bedroom apartments in Emaar Beachfront in Dubai. This tall, 60-story tower has six platform levels for parking and family entertainment in addition to a collection of opulent hotel suites and residential apartments.
The development embodies luxury with the expansion of open sea views and the palm. It provides the highest standard of architecturally superior interiors and exteriors along with first-rate services and amenities.
The development offers easy access to the rest of the community through its well-connected major artery road networks. where locals may easily visit JBR Beach, Emirates Hills, Jebel Ali Racecourse, Discovery Garden, Ibn Battuta Mall, and numerous other attractions.
Every aspect of the property offers access to recreational shorelines and a marina that captures the chic beachside lifestyle. With its serene surroundings and light-filled huge floor-to-ceiling windows, it creates a cool environment in the region.
Torino by ORO24
Torino is an innovative new gated community along the well-known Umm Suqeim Road in Arjan, next to Miracle Garden. The project consists of modern homes with distinctive modern comforts and a variety of opulent facilities. Arjan is a highly sought-after community within a ten-minute drive from Sheikh Zayed Road, the Mall of the Emirates, and Sheikh Mohammed Bin Zayed Road. Because of its ideal location between two major highways, Arjan has good accessibility to major destinations.
Torino Apartments are an innovative project that offers residents a rare blend of cozy indoor living and opulent outdoor living, all wrapped up in cutting-edge design with sustainability at its core! The idea develops a brand-new residential community that maximizes usable outdoor space with gardens, parks, and a host of opulent amenities. The apartments’ sophisticated space-planning techniques give maximum living space with enhanced storage areas and unprecedented functionality.
Opalz by Danube
OPALZ at Arjan is a brand-new residential tower by Danube Properties that offers studios, and one- and two-bedroom apartments. The gated community is exquisitely designed and comes with all the amenities you could want for a luxurious lifestyle. This leisurely high-rise development further brings to you all the facilities that give you the ultimate ease of life.
The development’s exceptional location provides convenient access to the rest of Dubai. The area is close to state-of-the-art developments and commercial centers and is also conveniently located near some of the most beautiful parks and athletic facilities in all of the United Arab Emirates.
The residents will value the luxurious architecture of Opalz, which includes cutting-edge fixtures and fittings as well as some of the best amenities. Those who live in these opulent and refined residences can enjoy the harmonious fusion of luxury surroundings and breathtaking views.
Azizi Riviera’s is one of dubai premium projects. It is situated in Meydan, the center of Mohammed Bin Rashid City (MBR City), Dubai. Riviera has a desirable position and is conveniently located near Meydan Racecourse, the site of the Dubai World Cup, and several sports and leisure facilities. Riviera is also close to Downtown Dubai and Dubai International Airport. The famous mixed-use development, which takes its cues from the French Riviera, will include residential units, shops, and some on-site amenities.
Riviera is made up of many mid-rise residential complexes with a range of retail establishments on the ground floor. A pool, beautifully landscaped gardens, and a gym will be available for each building. The residential units include studios, one-, two-, and three-bedroom apartments. You will have access to breathtaking views, including those of the community pool and canals as well as Downtown Dubai and the Burj Khalifa. A large range of cafes, restaurants, convenience stores, and retail establishments will also be present in Riviera.
The Bottom Line
Many European investors are moving their company operations to Dubai as a result of the geopolitical unrest. The city’s economy is solid, making it a desirable site for foreign investors.
Due to Dubai’s steady real estate market, European investors have benefited. By doing this, they can protect themselves from currency depreciation. Additionally, they stand to gain from the stronger dirham’s capital growth. This is due to the UAE Federal Reserve’s continued adoption of an aggressive monetary policy.
If you’re planning to move to Dubai or invest in this vibrant city, then now is the best time to do so. The real estate market in the city is anticipated to expand further and generate excellent returns when compared to other international markets.
Next Level Real Estate is one of the best real estate agencies in Dubai, having an extensive collection of the most opulent and valuable properties in Dubai. You can also contact our team, and they will guide you with the best investment in real estate in Dubai that gives the highest rate of return.