Investment Guide 2022
Dubai
D
ubai is well known for its
and with no sign of slowing
opulence, for being the
down, the city is evolving and
location of the tallest buildings
the property market maturing
on the planet, for breaking
steadily – it’s a perfect time for
records, and for being one of the
investors to buy a rental
top places to live - it’s also one
property.
of the best cities in the world to invest in real estate for an
Whilst recovery continues as the
abundance of reasons.
world reopens and tourism blossoms once more, 2022 is
Though the pandemic presented
absolutely a time when investors
new challenges, the Dubai
should take the opportunity to
property market has fared
invest in a rising market, with
incredibly well and has seen
considerable growth projections
impressive price growth over the
for prices and several notable
past 12 months, with
new developments in the
exceptionally high numbers of
pipeline.
properties being sold. Rental yields across Dubai For investors, Dubai is at an
remain to be high, and the
ideal point in its growth, having
demand for luxury property
already developed considerably
unwavering, meaning the outlook
over the past 20 years, emerging
for Dubai’s real estate market is
from a global pandemic with
a very positive one.
record-breaking sales volumes,
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Economy
D
ubai has one of the highest
Whilst the city’s rapid growth may
performing economies in the
have been boosted by revenue
world.
generated by oil, today less than 5% of Dubai’s revenue comes
The UAE is the fourth-largest
from oil. The economy is now
economy in the Middle East with a
fuelled by trade, aviation,
Gross Domestic Product (GDP) of
financial services, and tourism,
$421 billion, Dubai accounts for
together with property
around a quarter of the total GDP and
development.
with smaller oil reserves the city has diversified its economy considerably in recent years.
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Incredibly well connected Amongst its many benefits to
world’s ninth busiest port and the
businesses as a place to have a base
largest man-made harbour on the
of operations, strategically, Dubai is
planet. It is the busiest port in the
perfectly positioned for businesses
Middle East and acts as a gateway
operating between Europe, Asia, and
that enables trade across the local
Africa as it is centrally located
region and beyond, facilitating
between the continents.
worldwide trade.
Another of Dubai’s many economic assets, The Port of Jebel Ali is the
Growing financial hub Dubai is the financial centre for the
Home to the Dubai International
UAE and has become a global
Financial Centre (DIFC), which is
financial powerhouse, attracting
one of the top ten financial centres
some of the world’s top businesses
in the world and a leading hub in
as a place from which to operate
the Middle East, Africa and South
and in turn, this has attracted top
Asia (MEASA) region.
professionals from every country; Dubai has a vast expat community that continues to grow each year.
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environment A safe
O
ften referred to as the most
system with leading doctors from
liveable city in the world, Dubai
Europe, the US and Canada all
caters to every need and requirement
residing in Dubai and working in the
of its residents. Moreover, the UAE is
hospitals. The government is also
known to be one of the safest
implementing a project titled the
countries in the world making it
Green Economy for Sustainable
incredibly appealing to both residents
Development under which the UAE
and holidaymakers.
seeks to become a global hub and successful example of a new green
In 2021 international magazine
economy. Not only will this enhance
Global Finance assessed the safety in
the country’s competitiveness on a
134 countries and found the United
global stage, but it will also foster
Arab Emirates to be the second
sustainability and preserve the
safest place in the world, in terms of
environment for future generations.
security. First place was awarded to Iceland. Countries were evaluated
For expats, the appeal is obvious
based on three main criteria: the risk
– high paid jobs and tax-free
of natural disasters, personal safety
salaries, sun year-round, a luxury
of residents and preconditions
lifestyle, low crime rates and
for war.
beautiful places to live.
The UAE has an excellent health care 8
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Development
and future growth
S
ince 2002, when foreign
Those who didn’t invest following
investors were first permitted
the financial crisis back in 2008
to buy property in Dubai, and
might now be being given a
there was a frenzy of activity, the
second opportunity to secure an
city’s real estate market has
investment in a rising market but
endured setbacks such as the
one that has moved forward
global recession but has emerged
considerably in those 14 years
with greater credentials as a place
since the recession.
to invest. Dubai’s property market is now
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The Covid19 pandemic has
well-regulated, investment
certainly taken a toll on the global
continues to pour into the city
economy and whilst Dubai has not
and its multiple industries, and
been entirely unscathed, the UAE
the population is swelling,
has shone as one of the countries
growing steadily every year –
that have managed the pandemic
there are now double the number
well and have a robust and well-
of people living in Dubai
supported plan for recovery
compared to those residing in the
in place.
city 10 years ago.
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Current population of Dubai is around
3.4 million Growing at an average rate of year on year over the past decade
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Dubai is incredibly well established as a place to live and work and the plans for further construction and improvement to infrastructure are impressive. Previous issues with an oversupply of property to the market have been corrected and approvals for building are now limited, and planning is closely managed, meaning each new development is in high demand.
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Taxes T
he Emirate is easily one of the best places to invest in
terms of applicable taxes. Dubai
doesn’t collect an annual property tax and there is no income tax or inheritance tax.
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0%
income tax
A major appeal to those considering living and working in Dubai. The UAE has 0% income tax which is one of the key benefits cited by professionals moving to the country.
5% VAT
Whilst VAT will not impact an investor’s rental income, it is an important factor to consider when considering the overall merits of a location. With just 5% VAT applicable, the UAE has far lower rates than other established countries such as the UK which charges 20% and the USA where it is 15%.
PROPERTY
related taxes
A transfer tax of 4% is applicable when a property changes hands and there is a municipality tax equivalent to 5% of a property’s annual income that is used to fund local services. Precise figures are changeable based on the development and locality – investors should confirm these prior to purchase.
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41,998 CURRENT POPULATION: Expected to increase to 5million by 2025
transactions recorded in 2020 – an increase of 20% from 2019
3.38 mil
Business
Dubai is home to a third of Fortune’s Top 500 Companies 0% income tax Ability to invest with a guaranteed 10-year visa
Tourism
There are around 750 hotels in Dubai and in 2019 16.73million tourists visited the city 7/10 of the world’s tallest hotels are in Dubai Dubai is the fourth most visited city in the world after London, Paris and Bangkok
Rents increasing – average value up
6.9% compared to 2020 source
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Where invest in
DUBAI?
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T
here are several areas that
Business Bay boasts a fast-paced
should be seriously
lifestyle and some of the city’s
considered by investors seeking property in Dubai.
Downtown Dubai
finest amenities.
Dubai Marina One of the most sought after neighbourhoods in all of Dubai,
In the very centre of the city,
this stunning community has
Downtown Dubai is home to some
luxury skyscrapers, famed dining
of the most famous local
and entertainment spots and one
attractions including Dubai Mall,
of its greatest appeals is that it
Burj Khalifa and the Dancing
offers residents impressive
Fountains. Its prime location
waterfront living.
means it’s busy with visitors and residents year-round, it’s an area
Palm Jumeirah
known to offer a luxury lifestyle.
Business Bay
The largest manmade island in the world, the Palm Jumeirah needs little introduction. Set on the
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A trendy residential and
coast of the Arabian Sea, the area
professional hub that is fast
is home to an exceptional
becoming one of Dubai’s central
collection of properties, exquisite
business hubs. Much like
amenities and several adventure
Manhattan in New York City,
and entertainment facilities.
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Arabian Ranches The Arabian Ranches are one of the very first suburban freehold neighbourhoods in Dubai which have allowed many ex-pats to own a villa. It is largely a golf community and is also located near Dubai Polo and Equestrian Club. It is one of the most popular places to own or rent a luxury villa in Dubai.
Jumeirah Village Circle Jumeirah Village Circle is one of the most family-friendly developments in Dubai. Its position in the heart of new Dubai makes it one of the most alluring locations for investors and buyers seeking more affordable property in Dubai. To learn more about the current opportunities available to investors in Dubai, get in touch.
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Thirlmere Deacon London info@thirlmeredeacon.com + 44 (0) 2039507939 Lansdowne House, Berkeley Square, Mayfair, London, W1J 6ER
Thirlmere Deacon Dubai dubai@thirlmeredeacon.com +971 (0) 4 818 7277 Floor 30, Oberoi Business Centre, Business Bay, Dubai, United Arab Emirates