Buy or Rent: Make the Most Out of Your Dubai Investment

The surge in Dubai property prices is continuing. In 2023, sales prices featured an 11.9% increase while rental prices climbed up by 7%.

The first quarter of 2024 is over, and the number of real estate sales is impressive. According to Savills, +35.100 residential units found a buyer in 2024 Q1. What's more, compared to the same period in 2023, sales increased by 35%.

Dubai real estate is subject to a solid demand from around the world, increasing house prices. But, the question of whether it is better to buy or rent a property in Dubai, if at all, is surging in the market.

Renting a property in Dubai is more affordable in the short term. It is also more flexible and perfect for unclear future plans. But, as the rents increase every year, it costs more in the long term. Also, renting cannot bring the same advantages buying does, such as the Dubai Golden Visa.

If you have long-term plans and/or want to manage your money, buying a property in Dubai is a wise move. It allows you to benefit from short and long-term rental income and an attractive ROI.

Let's take a deep dive into the Dubai real estate market and help you steer your investment in the right direction.

1. Buy to Let: Make the Most of Your Investment

If you want to make the most of your investment, buying to let is the most fruitful method. Dubai has a thriving tourism landscape, offering a rewarding rental yield.

Short-term rentals target the tourist population, which is increasing every year. According to DET (Dubai Department of Economy and Tourism), Dubai received 5.18 million visitors in 2024-Q1. In addition, the total number of visitors was 17.15 million in 2023.

As the tourism industry grows further, daily and weekly rentals are becoming more and more promising. If you are considering having short-term income too, you can buy to rent an apartment or villa in Dubai. You can also buy a hotel room and earn free annual vacations. Also, you can benefit from our property management services.

2. Rent to Own: Reserve Your Dream Home

If you want to buy a property but don’t have the financing at the time, you can choose rent-to-own properties in Dubai. This method postpones purchase while securing the ownership of your dream home, saving valuable time for you to organize your budget. For this, you need to rent a property and buy it before the end of your rental lease date.

Other alternatives are buying properties for sale with installment plans and during the launch period. Also, our experts will share the most affordable investment properties with you.

Benefits of Buying Property in Dubai

Buying real estate in Dubai brings numerous benefits in both the financial and social aspects.

Tourism Landscape: Dubai is home to exclusive hotels and cultural/technological events. They attract more and more visitors to Dubai each year.

The increase in tourist numbers also put momentum in the rental yield. Today, the average rental yield in Dubai is 6-10%, making it an attractive destination for receiving passive income.

Freehold Property Ownership: Since 2006, foreigners can choose to buy property in Dubai in designated areas. This has resulted in a surge in foreign real estate purchases.

Tax Benefits: Dubai is a tax-free haven, offering amazing opportunities for investors. Dubai charges no tax on personal income, real estate transactions, rental income, and property taxes. In addition, it has double tax avoidance agreements with numerous countries. As a result, Dubai’s tax-friendly environment makes it one of the prime locations for real estate investment.

Novel Trends: Dubai has a futuristic spirit, allowing its real estate market to shine out in the Middle East and even the world. With a smart and simple blueprint, Dubai created innovative, sustainable, and stylish residences. These residences include long apartment buildings and luxurious villas.

What's more, Dubai is home to matchless projects such as the artificial Palm Jumeirah, Burj Khalifa, and the World Islands. The elevated standards have a big share of the demand for Dubai real estate.

Life Quality: Dubai has an amazing city infrastructure. There are cafes, restaurants, malls, and business centers all around the city. Finding outdoor sports and water sports is very easy. The available social activities exceed numerous cities around the world.

In addition, the transportation network is well-developed, offering large roads with easy connections. It has a metro, tram, bus, Dubai Abra, and water taxi. Dubai International Airport receives flights from over 100 airlines and 260 cities worldwide.

Where to Find Dubai Properties to Buy?

The best places to buy Dubai property are Business Bay, Palm Jumeirah, Jumeirah Village Circle (JVC), The World Islands, and Dubailand. Each of these places shares exclusive features like innovative residences, a serene ambiance, and lucrative investment opportunities.

Business Bay is Dubai’s commercial center with numerous opportunities. It is home to world-famous business centers. If you are looking for a commercial property investment, Business Bay is the perfect place.

Palm Jumeirah is an iconic artificial island, boasting mostly luxurious villas and apartments. Palm Jumeirah offers easy access to popular areas and has all kinds of daily amenities for a comfortable lifestyle. It is also a beloved holiday destination, offering fruitful rental income potential.

The World Islands is a series of floating islands, each with a unique theme. These islands are Dubai’s most popular holiday hotspots, offering a serene and natural atmosphere. The most popular types of properties are villas here. But you can find apartments as well.

Dubailand is a prestigious living space, offering a tranquil environment. It has a rich scale of social and daily amenities, shopping alternatives, and entertainment facilities.

Damac Hills is a gated community with a lively atmosphere. Here you can find all kinds of sports and entertainment activities. It features ever-going social activities. It is popular among families and perfect for long-term plans.

Jumeirah Village Circle (JVC) is another popular destination, offering stylish apartments and villas. JVC is a more affordable option and promises unmissable investment returns.

Right Property, Right Time

Dubai may be a worldwide favorite, but taking smart steps is essential to benefit from its charm. With the right guidance, you can invest in the right property at the right time.

Buying property in Dubai as a foreigner is an exciting journey. Let TEKCE Real Estate be your partner while investing in Dubai and get personalized services. Our team of experts is committed to finding the best investment property in Dubai for you. They will consider your needs, expectations, and budget.

Call us now and find your dream investment property in Dubai!

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