Investment potential of real estate in the UAE (на русском языке)
Presentation about investment potential of real estate in the UAE
Recent Turbulences and the real estate market
The world has been facing a series of disruptions, from the COVID-19 pandemic to ongoing military conflicts and shifts in economic policies. Among the most pressing current concerns are the escalating trade tariff disputes between the United States and other nations, as well as the continued military confrontation between Russia and Ukraine, with support from Europe and the United States.
New tokenisation project will bring more liquidity and depth to the real estate market but some pitfalls to overcome
In March, 2025, a pilot phase of the ‘Real Estate Tokenisation Project’ was launched by the Dubai Land Department (DLD) on Wednesday, aiming to implement tokenisation on property title deeds. The initiative seeks to diversify property ownership by allowing multiple to co-own a single property through tokenised real estate assets.
Investments in UAE - Risks and Opportunities (на русском языке)
Основным аргументом для приобретения недвижимости в ОАЭ является диверсификация капитала. Страна придерживается нейтральной политической позиции, так как на этой основе старается привлечь таланты и диверсифицировать свою экономику. ОАЭ – одна из немногих стран,
Trump policies will unlikely become a tangible threat to dubai real estate market
The UAE real estate market has seen rapid growth, with apartment prices rising over 35% annually in recent years. While concerns of a market bubble exist, economic growth and effective government policies make the market favorable for investment. Cautious property selection is key to balancing risks and returns.
Increase in property supply triggers more careful property selection
The UAE real estate market has seen rapid growth, with apartment prices rising over 35% annually in recent years. While concerns of a market bubble exist, economic growth and effective government policies make the market favorable for investment. Cautious property selection is key to balancing risks and returns.
Uae real estate market is favourable for investments despite some risks
The UAE real estate market has seen rapid growth, with apartment prices rising over 35% annually in recent years. While concerns of a market bubble exist, economic growth and effective government policies make the market favorable for investment. Cautious property selection is key to balancing risks and returns.
Uae economic outlook is currently favourable and is positive for real estate
The UAE economy is growing faster than the global average, driven by non-oil sectors like tourism, construction, and finance. Strategic reforms, visa liberalization, and capital inflows support diversification. This growth fuels migration and real estate demand, particularly for high-end segments, while risks from trade partner slowdowns and global rates remain minimal.
Property is still priced favourably
UAE real estate remains attractively priced relative to disposable income and quality-of-life standards, especially in Dubai. While investors overestimate risks like geopolitics, infrastructure, and climate, the UAE’s progress in these areas enhances its appeal. Cautious property selection is crucial for maximizing investment returns.
Main risks to watch for when investing in the uae
Investing in UAE property involves key risks. Migration volatility impacts demand due to strict citizenship rules, though eased visa policies help. Oil price dependence, while lessened by diversification, remains a concern. Regional geopolitical tensions pose potential trade risks, and trading partners' economic health influences stability. Monitoring these factors is crucial.
Investing in remote areas and other emirates
Investing in remote UAE areas offers affordability and growth potential, driven by migration from costly emirates. However, risks include price volatility, reliance on large infrastructure projects, and weaker resale demand. Economic and political factors further influence prices, making investments longer-term and riskier than in Dubai or Abu Dhabi.
Factors affecting returns from investment
Investing in UAE real estate comes with costs that reduce profitability, such as a 4% DLD tax in Dubai, agent commissions (up to 2% for secondary market deals), and service fees, which vary by property type. Short-term rentals face added costs like management commissions, advertising fees, and utility bills, significantly impacting returns.
DUBAI REAL ESTATE PRICES WILL LIKELY CONTINUE GROWTH BUT NOT UNIFORMELY
Real estate prices in Dubai will likely continue to grow due to limited supply, economic growth, and population influx. However, growth will not be uniform, with newer and exclusive housing outperforming cheaper, lower-quality properties. Visa liberalization and favorable living conditions also drive demand, while past market volatility is expected to reduce.
Benefits and challenges for living in Dubai
Living in Dubai offers safety, quality education, no personal income tax, high salaries, and a multicultural environment. However, challenges include the hot climate, limited citizenship options, and a lack of cultural depth compared to Europe, though efforts are improving infrastructure and visa policies.
