DUBAI - Property market between desert gold and a vision of the future

Dubai - A place like no other

Dubai is not only fascinating as a travel destination, but also as a hotspot for international property investments. More and more people - including many Europeans - are discovering the Gulf state as an attractive location for their capital. But what makes Dubai so special? And what should you look out for when buying property?

Why are so many people investing in Dubai?

Tax exemption:

In Dubai, there is no income tax, no property tax and no capital gains tax on real estate. This is a real game changer for many investors, especially in comparison to European countries.

High rental yields:
Rental yields of 6-10 % p.a. are not uncommon in many neighbourhoods - significantly more than in most major Western European cities.

Stable Dirham (AED):
The UAE dirham is pegged to the US dollar, which minimises currency fluctuations.

Political stability & security:
Dubai is considered one of the safest countries in the world with a very good infrastructure, low crime rate and international flair.

Golden Visa:
If you buy a property worth AED 2 million (approx. €500,000) or more, you can apply for the coveted Golden Visa - a right of residence for 10 years with many benefits, including for families.

Advantages of a property investment in Dubai:

• No taxes on income, rental income or sales
• Attractive new-build projects with modern standards
• Growth market with ambitious infrastructure projects
• International demand from tenants and buyers
• Visa programmes for investors (Golden Visa)
• Simple purchase process, also for foreigners

But there are also Disadvantages or things you should know:

• Financing for foreigners is possible, but sometimes expensive - many buy in cash or with equity
• The market is cyclical - quick profits are possible, but there are also certain risks
• Maintenance & management should be professionally organised (e.g. via property management)
• No land register system as in Austria - protection works differently (see below)How does buying property in Dubai work? - The steps
• Advice & selection of the property
• New build from developer or existing property
• Freehold zones (permitted for foreigners)
• Reservation and deposit
• Contract (SPA - Sales Purchase Agreement), regulates price, payment plan, handover, etc.
• After full payment, registration with the Dubai Land Department (DLD)
• Buyer receives the so-called title deed (proof of ownership)
• Golden Visa (optional)
  • With a minimum value of AED 2 million
  • Proof of ownership, passport, health check, etc.

Protection & tips:

• Always work with an authorised broker (RERA licensed)
• Have the title deed checked (authenticity and encumbrances)
• For new builds: Check property developer reputation + payment plan critically
• Organising administration: e.g. letting, maintenance, ancillary costs

      Conclusion:

Dubai is not a classic property market - it is a market of superlatives, with high speed and equally high potential. Whoever
Anyone who knows the rules of the game and is professionally supported can achieve attractive returns and benefit from tax advantages. The Golden Visa is
the icing on the cake for anyone who wants to invest more than just capital.