About Dubai Real Estate
About Dubai Real Estate
We collaborate with various experts to meet
the wide-ranging needs related to Dubai real estate
transactions and business expansion.
We are committed to assisting you
in your endeavors in the dream city of Dubai.
About Dubai
⚫︎Basic Information about Dubai
Dubai is one of the seven emirates that make up the United Arab Emirates (UAE), and most of its territory is desert.
While it has a strong image of gaining enormous wealth from oil and natural gas exports, Dubai’s main industries are tourism, finance, and real estate.
The climate is hot and dry desert climate throughout the year, with temperatures exceeding 40 degrees Celsius in summer.
On the other hand, the winter climate is mild and pleasant.
⚫︎Economic Overview
The population is estimated at about 3.6 million, with the majority being foreign workers. The official language is Arabic, but English is also very widely used.
⚫︎Characteristics as an Attractive Investment Destination
The reason Dubai is highly attractive as a global investment destination is its geographical advantage. It is located at the crossroads of Europe, Africa, and Asia, and its importance as an economic/commercial center in the Middle East region is increasing. Additionally, the convenience of infrastructure, including modern airports, ports, and highway networks, is also attractive.
Economic Trends
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Market Opportunities
Dubai’s economy is on an upward trend. In recent years, the market size of restaurants and service industries has grown, and the number of Asian restaurants has also increased.
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Real Estate Price Trends
Dubai real estate prices have been rising rapidly since 2020. Although there was a decline in the past due to oversupply, now the focus is on balancing the expansion of demand due to population growth and the number of supplies. According to the 2040 Master Plan, the aim is to increase the population by 130,000 people annually, and in 2023, an increase of 120,000 people has been achieved. On the other hand, the supply numbers are not keeping up, and the pace of demand increase is exceeding supply.
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Introduction to Popular Areas
Dubai Marina, Palm Jumeirah, and Downtown Dubai are the three main central areas of Dubai real estate. Areas that have become particularly popular in recent years are Dubai Creek Harbour, Dubai Hills, JVC, and Dubai South.
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Promising Future Dubai Real Estate Developments
New Urban Development
Large-scale real estate development is always ongoing in Dubai.
Countless large-scale developments are underway, including the expansion of Al Maktoum International Airport, large-scale development of the Dubai South area, development of Palm Jebel Ali, downtown development in the Creek Tower and Creek Harbour areas, and resort development on Dubai Island.
The impression of Dubai seen through the media often seems like “a city already completed,” but in reality, it is still in the developmental stage. Dubai will continue to evolve further.
Advantages of Investing in Dubai
Overview of UAE Tax System
In Dubai, there is zero income tax on personal salary income, investment income, and real estate investment gains. In addition, corporate tax is at a low rate of 9% by international standards.
Also, the registration transfer fee for real estate is 4%, and including other expenses, it comes to about 5%. Brokerage fees are also set, with 0% for properties sold by developers and 2% for properties traded in the general market.
Incentives for Starting a Business in Dubai
The Dubai government offers incentives for foreign investment companies through the free zone system. Within free zones, it’s possible to establish a company with 100% foreign capital, and various tax incentives and deregulation measures are available. For example, the Healthcare City free zone is ideal for opening a medical clinic, while the Airport Free Zone or JAFZA are optimal for starting a trading business.
Investment Preparation and Support System
We carefully support various procedures from real estate purchase to management and sale. It’s important to consult with a reliable agent when searching for properties.
If investing as an individual, knowledge of visa conditions and UAE residency requirements is necessary.
When investing as a corporation, knowledge of costs associated with Dubai companies, taxation, international tax systems, and economic substance requirements is necessary.
Such information cannot be obtained solely from the internet; it’s raw information that can only be gained from local practices.
Our company goes beyond mere real estate brokerage, constantly updating with the latest knowledge and information. We also partner with local Arabic-speaking experts to ensure that foreign investors can confidently relocate or start businesses in Dubai.
Tips for Dubai Real Estate
Investment
Concept of Risk Diversification
Risk diversification is important in investment. Income from Dubai real estate can be obtained in UAE Dirhams (fixed exchange rate with US Dollar). Risk diversification means strategizing so that all assets don’t become zero due to a single factor.
Types of asset diversification include bonds, stocks, and real estate. They differ in their sensitivity to policy interest rates and market maturity. Within real estate, diversification can be considered based on location characteristics and usage such as family homes or offices. Thus, risk diversification requires consideration from multiple perspectives.
How to Choose Investment Properties in Dubai
When choosing investment properties in Dubai, the three most important factors are location, view, and surrounding environment. While location is naturally important, the view is also highly valued in Dubai properties. Additionally, the surrounding environment such as beachfronts, waterfronts, golf courses, and parks becomes a more important factor than in other countries.
Life for Expatriates
About 90% of Dubai’s population consists of foreigners, with diverse cultures coexisting. Many foreigners come to work here, attracted by high salaries and tax-free income. The living environment is excellent, with luxury apartments and villas being popular. English is widely spoken, making daily life relatively easy.
However, respect for Islamic culture is necessary, and care must be taken with clothing and behavior in public places. Also, the summer heat is intense, leading to more time spent indoors.
Foreign communities are well-developed, offering many opportunities to interact with people from the same country of origin.
Frequently Asked Questions
Q1Can you tell me the advantages and disadvantages of Dubai real estate?
The advantage of Dubai real estate is that it’s a rare market in the world where all the necessary conditions for real estate investment (population growth, legal infrastructure, good public safety, etc.) are in place. You can aim for capital gains and expect high rental yields. Also, there’s still limited information available in your country. Disadvantages include significant price fluctuations and the influence of external factors such as exchange rates.
Q2Can you tell me about the support services you offer?
We offer real estate brokerage (buying, selling, commercial), accompaniment on Dubai inspections, advice through second opinions, company establishment, account opening, visa acquisition, and import/export of goods (including collaboration with Middle Eastern expert lawyers and overseas expansion support organizations).
Q3Are there any brokerage fees?
The brokerage fee is 0% when purchasing directly from developers. For resale by owners, it’s up to 2%. For residential rentals, it’s typically 5% of the rent, and for commercial properties, about 10% of the rent (varies by property).
Q4Is it possible to only establish a company or open an account?
Yes, it’s possible. We can assist with just company establishment or just bank account opening. We work with banks such as Emirates NBD, Abu Dhabi Islamic Bank, and Standard Chartered.
Q5From what price can properties be purchased? And what’s the purchase method?
In the overall Dubai market, properties start from around $140,000, but we focus on introducing highly reliable properties and those from government-affiliated developers, with many properties ranging from $250,000 to around $420,000. This is because we select properties with future resale value in mind.
Q6 What about taxes?
Profits earned from Dubai real estate by individuals living overseas may be subject to taxation in their country of residence. However, it is possible to establish a company in Dubai and acquire real estate through it, but tax treatment varies on a case-by-case basis, so please consult with our affiliated specialists.
Recommended Properties
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Off-plan Properties
These are unfinished properties that allow for investment anticipating future price increases. There's an opportunity to purchase at a discount compared to completion, and you can buy new projects from developers through 3-5 year installment payments without paying a large sum at once.
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Ready Properties
These are properties where construction is already complete. Some are ready for immediate occupancy or handover. You can view before purchasing, allowing for a confident selection. They can be used for investment or residence and are characterized by high convenience.
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Rental Properties
These are rental properties that cater to diverse needs from short to long term. You can choose from a wide range of locations and property types, making it possible to find an ideal home. We also offer flexible contract options.
Proposals based on our proprietary data analysis
Based on data released by the Dubai government, we analyze trends in Dubai’s real estate market, areas, and developers.Understanding the characteristics of each area helps in formulating investment strategies.
