Dubai stands as a prime destination for property investment. The city's appeal lies in its rapidly growing population, drawn from around the globe by abundant business opportunities, low taxes, safety, sunny weather, modern infrastructure, and a vibrant lifestyle. Dubai has evolved into a cosmopolitan hub, much like major European or US cities.
The city's excellent free zones and easy access to global markets attract international entrepreneurs and corporations to set up businesses here. This, in turn, fuels a healthy and regulated growth in the property market. To understand Dubai's position in the global real estate landscape, consider the Global Real Estate Bubble Index 2022 by Swiss UBS Bank. This index provides a clear picture of Dubai's standing in the global property market.
Property rent market
Renting out commercial or residential properties in Dubai can be highly profitable. The minimum Return on Investment (ROI) for residential properties stands at 8%. Many developers even offer guaranteed ROIs of 10% or more. Given Dubai's robust tourism industry (ranking 4th globally with over 14 million visitors annually), short-term rentals are also in high demand. These can yield even higher ROIs when managed by companies that specialize in renting out your properties. Let's consider another interesting analytical data from Swiss UBS (from 2022):