Dubai, UAE – As Dubai’s real estate market prepares for its next growth cycle, international investors are anticipated to play a pivotal role in driving the sector’s expansion. Industry experts reveal that investors from countries including Australia, the UK, Europe, North America, Turkey, and Iran are likely to lead the way, drawn by Dubai’s strategic location, tax-free status, and promising investment climate.
The emirate’s property market has previously experienced three significant growth cycles—pre-global financial crisis in 2009, in 2014, and post-Covid. With the third cycle approaching its peak in 2023-2024, a fourth cycle is expected to commence, marked by a stable correction followed by growth.
Key Drivers for International Investment:
- Higher Returns and Tax-Free Environment: Investors from regions facing rising taxes and lower returns, such as the UK, Australia, and Europe, are seeking more favorable investment opportunities. Dubai’s tax-free environment and higher returns on property investments make it an attractive option.
- Economic and Political Stability: Investors from Iran and Turkey are drawn to Dubai for its economic and political stability. Additionally, cultural ties and proximity play a significant role for Iranian investors, while Turkish investors are motivated by the need for economic diversification and business opportunities.
- Robust Economic Connections with China: While the influx of Russian investors has slowed, Chinese investors are expected to become major players in the market, bolstered by strong economic connections and political ties between the two nations.
- Lifestyle and Residency Programs: Dubai’s attractive lifestyle, business opportunities, and favorable residency programs appeal to European and North American investors. The British, in particular, are increasingly attracted to Dubai’s Golden Visas, tax-free benefits, and high rental yields.
- End-User Market Growth: There is a noticeable shift towards an end-user market in Dubai. Many foreign investors are now buying properties with the intention of eventually relocating to Dubai, driven by long-term residency benefits and attractive returns on investment.
Industry Insights:
Guillaume Giroux, CEO of Elysee Vendome Real Estate, noted that European investors, particularly from France, are increasingly looking at Dubai due to uncertainties and high taxes in their home countries. Similarly, Mouna Muller from Betterhomes highlighted the diverse range of investors fueling the fourth cycle, emphasizing the appeal of Dubai’s lifestyle and investment climate to Europeans, Iranians, and Turkish nationals.
Ramjee Iyer, Chairman and Managing Director of Acube Developments, echoed these sentiments, pointing out that high taxes in the UK, Australia, and Europe are pushing investors towards tax-efficient markets like Dubai. Iyer also highlighted the growing presence of British investors, who have recently overtaken Indian investors in the market, drawn by the lure of Golden Visas and luxury lifestyle.
Paul Christodoulou, CEO of Aqua Properties, anticipates a stronger interest from European investors, including Germans, with the British presence remaining substantial. He also noted the emerging interest from Australian, Singaporean, and North American investors, driven by zero percent tax on investments and income in Dubai.
Looking Ahead:
Dubai’s property market remains dominated by international buyers, a trend expected to continue. The emirate’s strategic location, tax-free status, and inviting investment climate will keep it a magnet for foreign investors. As Dubai transitions towards an end-user market, the involvement of residents in property investments is expected to stabilize the market over time.
“The interest from foreign investors is set to grow stronger,” concluded Giroux. “With security, high rental yields, and an unmatched lifestyle, Dubai remains a top choice for global investors.”
Source: Khaleej Times
