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Real estate investment in the United Arab Emirates (UAE)

Investments in real estate have been the main pillar for preserving and increasing capital for many years. The main aspect of creating a successful investment portfolio has always been and will be the right choice of an expert company to build an investment strategy.

Team of the company - expert VelesClub Int. has been successfully growing and occupying a leading position in the field of international real estate since 2015; by the end of 2023, our company’s services already cover more than 20 countries around the world.

Our team of analysts has prepared a short excursion for you to get acquainted with the UAE real estate market:

To begin with, the UAE ranks first in 2023 according to the Investment Confidence Index among all countries in the Middle East and Africa. In the world, the UAE is only surpassed by India and China.

The population of the UAE is growing from year to year, both from the local population, relocators and foreign investors, this has a significant positive impact on the growth in demand for the purchase and rental of real estate. Annual GDP growth, improvement in the UAE economy as a whole, employment levels and available business prospects, oil prices (despite the fact that the Emirates has actively diversified the country's economy and reduced its dependence on the oil trend), low mortgage rates and expenses on loans for real estate buyers, also have a very positive impact on the state of the UAE real estate market, which has shown consistent positive trends over recent years.

Only the global pandemic of 2019 could make a negative contribution to the growth of the UAE real estate market, as a result of which the flow of tourists and the entry of qualified expats (mainly from the sectors: hotel, air travel, transport) into the Emirates and, as a result, the cost and demand for housing in the Emirates significantly decreased. UAE declined. Since the opening of borders after the pandemic, the market began to recover at an active pace and by 2022 had already begun to break all possible records.

In 2022 alone, the total transaction volume for real estate transactions amounted to more than 266 billion dirhams, and the transactions are very diversified: secondary real estate, off-plan (real estate under construction) sales. In 2023, the cost per square meter of off-plan housing in the UAE was just over $5,000.

Experts VelesClub Int. We have generated for you the pros and cons of investing in real estate in the UAE, studying:

• In the UAE there is no tax on resident income, including rental income;
• Low “entry point” for investors (when purchasing real estate at the construction stage, the down payment is 10-30%);
• A residence visa for 2 years is provided when purchasing real estate in the UAE from $205k;
• A simple process of purchasing and renting out real estate (rental income can be up to 14% per year of the property value);
• UAE developers provide non-residents with the opportunity to purchase real estate in installments and with postpayment, as well as guaranteed profitability from 3 to 10 years;
• The country actively uses guaranteed payment through escrow accounts for additional guarantees of the safety of investments;
• In the UAE, all possible methods of paying for real estate are actively used;
• Dirham is one of the stable world currencies.

The disadvantages include:

• If there are problems with installment payments for the purchase of real estate, the developer has the right to return the real estate and the down payment;
• The increase in the cost of objects in the country continues for a period of no more than 5 years after commissioning;
• High competition among bona fide developers and the cost of “liquid” investment properties;
• There are a large number of unscrupulous developers, so when selecting real estate you must definitely resort to the help of companies that are experts in the UAE real estate market!

“The UAE real estate market is unique in its high investment rates, minimal taxes, high and stable investment returns that do not depend on global turmoil, and ideal conditions for business relocation. Don’t forget to enlist the support of leading companies in the global real estate and investment market for advice and support of the transaction to increase capital,” summarizes the General Managing Partner of VelesClub Int. Sergey Tumanov.

Any real estate investment requires evaluation and balance, and complete trust in market experts. A team of experienced managers at VelesClub Int. I am always ready to answer all your questions and accompany you at all stages of the transaction and subsequent reinvestment and diversification of your investment portfolio.