TOP UK INVESTOR DESTINATION
Dubai real estate continues to be a consistently favoured and high-yielding investment option for UK
investors.
- High global capital growth
- Lower cost per square feet, compared to London
- Attractive destination for FDI
- Gross rental yield of 5-9%
- Simple visa processes
- One of the safest cities in the world
Dubai has attracted international investment over the past 20 years, offering UK investors
exceptional global returns.
Dubai boasts one of the most robust property markets worldwide.
The UK economy is encountering difficulties with sluggish growth prospects post-Brexit and the
consequences of the Covid-19 pandemic, resulting in it falling behind other nations. In February
2023, the Chancellor warned about consistently bleak economic predictions, even as the UK
narrowly evaded an official recession.
Dubai’s real estate sector continues to allure investors who anticipate a prosperous future for their
investments, despite the subdued and stagnant property market, elevated interest rates, and
economic obstacles encountered by the UK.
DUBAI SHOWCASES ONE OF THE MOST RESILIENT REAL ESTATE MARKETS GLOBALLY
Dubai property is changing.
In the past, investors were informed of the speculative nature of the boom-bust cycle, which held
particular appeal for many British investors. Following the Gold Rush years that ensued after Dubai’s
property market opened to foreign investors, significant surges in capital appreciation were
observed, with British investors ranking as the third largest group, surpassed only by investors from
the Emirates and India.
Investors now encounter a property market that bears a remarkable resemblance to London two
decades ago, marking a distinct departure from previous market conditions.
The previous year witnessed the Emirates’ remarkable achievement of double-digit capital gains,
surpassing the global prime average growth rate by twofold.
After an exceptional year in 2021, the Dubai market set new records with industry sales transactions
totalling AED 151 billion (USD 41 billion). This surge in demand exceeded the previous 12-month
period by 110% and even surpassed pre-pandemic investment levels, showcasing an impressive 90%
increase in value and a 55% rise in volume.
Dubai property presents a compelling proposition in terms of rental yields, particularly when
compared to other investments and even prime properties in the UK. While investors in London face
challenges in achieving a 3% annual rental return on investment, Dubai offers significantly higher
rental yields, with investors easily achieving returns around 7%
RENTAL RETURN:
DUBAI VS. LONDON
Superior long-term performance: Dubai property
Dubai authorities’ recent endeavours to promote sustainability and transparency in the property
market have had a favourable impact on long-term investor confidence.
Dubai is widely recognized as the most transparent real estate market in the MENA region, a
distinction acknowledged by multiple global consultancies.
Investors can now benefit from new and revised policies and regulations implemented by the UAE
government, including the Dubai Land Department’s initiative to provide public access to all real
estate data.
Key economic factors for UK investors in Dubai real estate
British investors are fully aware of the economic hurdles faced by Britain, which have already made
an impact on the mortgage market and are now beginning to influence the housing market.
While Dubai’s economic performance may not be in the public spotlight, its remarkable fiscal ascent
is remarkable. What distinguishes Dubai is its capacity to achieve this growth without solely
depending on the surge in oil prices triggered by the Ukraine conflict during the previous fiscal year.
Dubai’s Economic Surge
Dubai’s gross domestic product (GDP) showcases notable variety propelled by the Vision
2021 and Industrial Strategy 2030 blueprintsDubai encountered an unprecedented surge of affluent individuals following the post-COVID
era.Dubai observed a substantial inflow of proficient laborers and consequent employment
generation, stimulated by the implementation of new visa regulations.
The UAE’s Vision 2021, with its emphasis on six National Priorities encompassing exceptional
education and healthcare systems, is yielding encouraging outcomes. Furthermore, the Industrial
Strategy 2030 is beginning to materialize its wider advantages, as evident in the ongoing progress of
Etihad Rail, connecting 11 cities across the seven emirates and serving approximately 36 million
people.
At the onset of 2023, the World Bank revised the UAE’s growth projections for 2022 and 2023 by
1.2% and 0.7% respectively, indicating anticipated growth rates of 5.9% in 2022 and 4.1% in 2023.
Once again, the non-oil sector expansion emerged as the primary driver for this positive outlook.
Dubai and the UAE distinguish themselves as the most rapidly expanding economy in the Gulf
Cooperation Council, which is particularly noteworthy considering the global economic forecasts
projecting a significant deceleration due to factors like high inflation, rising interest rates, and
diminished investment activity in other regions.
The preferred diversification and investment hotspot worldwide
Although certain property investors may not entirely comprehend the extensive economic
possibilities in Dubai, governments and institutions are acutely aware of them.
Dubai retained its status as the foremost global hub for foreign direct investment (FDI) projects, as
revealed in the last quarter of 2022.
The statistics themselves serve as a testament, instilling confidence in Dubai’s investment
environment. In the first half of 2022, Dubai attracted an astounding 492 FDI projects, marking a
remarkable 80% year-on-year surge.
The preferred diversification and investment hotspot worldwide
With expected economic uncertainty in the UK, the fascination of Dubai’s thriving economy and
property market has grown, offering investors a remarkable opportunity.
VISA OPPORTUNITIES FOR UK INVESTORS BUYING DUBAI PROPERTY
Residency presents an additional captivating element that Dubai extends to UK investors.
Dubai’s real estate landscape, renowned for its exceptional quality of life, has witnessed substantial
advantages from comprehensive government reforms that have streamlined and improved the
process of linking residency to investment.
A recent modification allows investors to obtain a ‘Golden Residence’ visa by acquiring one or more
off-plan properties valued at a minimum of US $544,500 (AED 2 million), provided the transaction is
facilitated by an approved local real estate company.
The Golden Residence Scheme, commonly referred to as the Golden Residence visa, grants
individuals the opportunity to become long-term residents of Dubai for a period of 10 years.
In a progressive approach, Dubai authorities have introduced the digital nomad visa in response to
the global trend of remote work. This visa permits individuals to reside in Dubai while being
employed by an overseas company, exempt from paying income tax in Dubai. The objective is to
attract talented young professionals and bolster Dubai’s thriving technology sector, offering
significant benefits for property owners with rental assets, particularly apartments.
