Thinking about investing in off plan? Here’s our expert take

Two of our most seasoned consultants (and popular podcasters) say Dubai investors should be reassured by forward-looking policies.
As we sit in 2024, Dubai’s real estate market is teeming with opportunities for those looking to invest in or purchase property – and this enviable situation has been built on ambition, resilience, and a ‘can do’ approach by the government.

The evolution of Dubai’s real estate landscape since 2008 has been extraordinary.

Through the efforts of the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA), the market’s transparency and investor confidence have risen considerably.

While some investors may have lingering concerns – especially those wary of past experiences with off-plan properties – the Seven Stones experts stress that recent changes in the Dubai market have alleviated many of these worries.

“The introduction of the escrow law ensures that all funds for off-plan projects are placed in an escrow account, directly addressing concerns related to project completion. These changes indicate a more mature and stable market environment. Moreover, the diversification of Dubai’s economy – highlighted by significant growth in non-oil sectors like tourism, technology, and finance – reduces the city’s vulnerability to global oil price fluctuations,” says Steven Leckie, Associate Director – Off Plan & Investment, Seven Stones Real Estate.

Plus, the 2040 Urban Master Plan, which envisions expansive development in residential, commercial, and public spaces, underlines the government’s commitment to sustainable urban growth.

“For investors previously impacted by the market’s volatility, these developments could offer reassurance about re-entering the Dubai real estate market with a long-term perspective,” Leckie adds.

There are several advantages when comparing Dubai to other international property investment hot spots.

Beyond offering higher rental yields and lower ownership costs, Dubai’s strategic geographic location bridges the East and West, providing a unique advantage in attracting international businesses and expatriates.

“Additionally, the city’s investment in world-class infrastructure, including airports, public transportation, and leisure facilities, enhances its appeal as a global city for living and doing business. The absence of capital gains tax and income tax on rental yields for individual owners in Dubai further enhances its attractiveness, especially when compared to the tax implications in markets like London, the US, and Europe,” Leckie says.

These factors, coupled with the UAE’s stability and forward-looking policies to attract foreign investment, such as long-term residency visas for investors, contribute to Dubai’s competitive edge as a property investment destination.

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