Dubai Investment Guide 2022 - Thirlmere Deacon
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Investment Guide 2022 Dubai
D ubai is well known for its
opulence, for being the
location of the tallest buildings
and with no sign of slowing
down, the city is evolving and
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,
2 3
Economy
D ubai has one of the highest
performing economies in the
world.
Whilst the city’s rapid growth may
have been boosted by revenue
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.
4 5
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.
6 7
environment
A safe
O ften referred to as the most
liveable city in the world, Dubai
caters to every need and requirement
system with leading doctors from
Europe, the US and Canada all
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 9
Development
and future growth
S ince 2002, when foreign
investors were first permitted
to buy property in Dubai, and
Those who didn’t invest following
the financial crisis back in 2008
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
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.
10 11
Current population
of Dubai is around
3.4 million
Growing at an
average rate of
year on year over
the past decade
12 13
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.
14 15
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.
16 17
0% A major appeal to those
income tax
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 A transfer tax of 4% is applicable
related taxes
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.
18 19Business
Dubai is home to a third of Fortune’s Top 500
41,998
Companies
transactions recorded in 2020
– an increase of 20% from 0% income tax
2019
Ability to invest with a guaranteed 10-year visa
There are around 750 hotels in Dubai and in 2019
CURRENT
Tourism
16.73million tourists visited the city
POPULATION: 7/10 of the world’s tallest hotels are in Dubai
3.38 mil
Expected to increase Dubai is the fourth most visited city in the world
to 5million by 2025 after London, Paris and Bangkok
Rents increasing
– average value up
6.9%
compared to 2020
source
20 21Where invest in
DUBAI?
22 23T here are several areas that
should be seriously
considered by investors seeking
Business Bay boasts a fast-paced
lifestyle and some of the city’s
finest amenities.
property in Dubai.
Dubai Marina
Downtown
Dubai 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.
The largest manmade island in the
Business Bay world, the Palm Jumeirah needs
little introduction. Set on the
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.
24 25Arabian
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.
26 27Thirlmere Deacon London Thirlmere Deacon Dubai
info@thirlmeredeacon.com dubai@thirlmeredeacon.com
+ 44 (0) 2039507939 +971 (0) 4 818 7277
Lansdowne House, Berkeley Square, Floor 30, Oberoi Business Centre,
Mayfair, London, Business Bay,
W1J 6ER Dubai, United Arab EmiratesYou can also read
