The purchase of real estate by foreign investors is strongly supported by the United Arab Emirates. This tactic is partly the result of an effort to diversify an economy that depends heavily on oil earnings. Drawing in foreign capital for villas in Dubai for sale by the sea and other types of real estate influences the level of sustainability and variety of the nation’s economic foundation.
The Arab Emirates has set up programs and special economic zones that offer advantages and comforts to foreign investors, such as the potential for complete real estate ownership in specific locations. The willingness to innovate and advance contemporary technology in real estate management and construction is also reflected in the openness to foreign investment. Authorities and foreign investors find the region appealing because of the luxurious projects, first-rate infrastructure, and high standard of living offered by emirates like Dubai and Abu Dhabi.
Now, let’s discuss several factors that make the real estate market in Dubai stay open to foreign investors.
1. Focus on economic diversity
The UAE government is actively promoting a diverse economy. The instrument functions as a foundation for economic growth at the corporate and national levels. It facilitates maintaining steady growth rates and responding to changes in the market. Sharing risks works best when there are a lot of unknown variables that could affect the outcome. In simple words, the UAE aims at reducing the level of oil dependence and getting profit from other industries.
Attracting foreign real estate investors is becoming an important element of this strategy. Investment diversity helps reduce dependence on oil revenues and creates a sustainable and long-term foundation for the economy.
2. Thought-after development strategy
The UAE government is focused on creating a sustainable economy. Investment in real estate promotes tourism, commercial activity, and infrastructure, which in turn reduces the level of unemployment and impacts the economy.
The United Arab Emirates’ plan, known as We The UAE 2031, calls for doubling the GDP of the nation from AED 1.49 trillion to AED 3 trillion in just ten years. Additionally, by 2031, the number of tourists visiting the UAE should double to 40 million annually, contributing AED 450 billion to the national economy.
3. Attracting technological innovation
Attracting residents of other countries to the real estate sector is also associated with attracting technological innovation and best practices in construction and real estate management. This helps in modernizing the industry and creating an innovative and efficient infrastructure. The UAE also attracts many foreign specialists to develop various industries and promote technological advances.
4. Global competitiveness
Foreign keen interest in properties improves the UAE’s international competitiveness. It helps implement the capital of large international companies and investors, enhancing the country’s reputation as a favorable place for business and investment.
Over the last 10 years Dubai has become a business hub, a safe place for relocation, and a beneficial point for talented youth due to several reasons:
- Convenient location;
- Robust economy and sustainable financial system;
- Comfortable tax system for foreigners;
- Advanced infrastructure and well-developed public transport;
- Profitable conditions for conducting business and promoting career.
Besides, real estate investments support the construction of new facilities, infrastructure projects, and residential complexes. This contributes to the growth of the construction industry, creates new jobs, and provides additional sources of income for the national economy.
How Dubai attracts foreign real estate investors
As the UAE is highly interested in attracting foreign capital, the government implements several reasonable strategies. Foreign investors and expats looking for permanent places to stay get the next perks:
- The right to get a residence permit. Along with the document foreign real estate buyers obtain legal residence in the country, significant tax savings, access to education and medication, an opportunity to get a driver’s license, and so on.
- Opportunity to combine luxury and comfort. Dubai is the city of style and wellness. However, the developers strive to impress potential residents not only by pretentious design and rich decorations but via convenience and exceptional living conditions.
- Deals with zero tax. Buying directly from the seller virtually eliminates the risks associated with dealing with dishonest intermediaries and can result in significant savings. Acquiring real estate in Dubai won’t be feasible if extra expenses are completely avoided, but they will still be minimal. This will eventually yield a high return, which explains why real estate investing in Dubai is so lucrative.
- High personal security. Dubai is characterized by a very low crime rate. Being one of the safest cities in the world, the metropolis attracts foreigners for family living and businessmen for developing prolific careers.
- Constant market growth. The Dubai real estate market is less influenced by external economic and political fluctuations which make it stable and resilient. Even during the pandemic, the real estate sphere declared high returns.
Where to search for real estate in Dubai
The database of profitable properties in Dubai is available by visiting the Emirates.Estate website. Adjust the characteristics and look through the list of residential developments at affordable prices. The aggregator cooperates with the developers to stay on top of recent news and upcoming projects. If you have any special preferences or conditions, contact the professionals to get an individual consultation. Emirates.Estate helps to fulfill all the necessary conditions within the set price and time limits.
The bottom line
The UAE’s keen interest in attracting foreign capital to the real estate sphere is deeply rooted in the aim of economic diversification and constant growth. The establishment of special economic zones with alluring incentives is indicative of a proactive strategy to entice foreign investors and promote a varied business environment.
Moreover, the United Arab Emirates utilizes these investments to strengthen its infrastructure, experiment with state-of-the-art technology, improve the living condition of residents and citizens as well as improve its competitiveness internationally. Beyond financial gains, there are many other benefits as well, such as cultural diversity, technology improvements, opportunities for personal growth and career development, and a high-end lifestyle that attracts both residents and investors.