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27.11.2023 17:58

Not only Dubai: top 5 emirates for real estate investment

Not only Dubai: top 5 emirates for real estate investment

Dubai remains the obvious leader among all emirates in buying real estate. However, in other locations of the UAE also have offers that may interest investors. Let's consider Dubai and the rest of the emirates in terms of prospects for real estate investment.

There are several ways to profitably invest your capital in real estate in the UAE. 

The first is the purchase of apartments for rent. This method will allow you to receive a stable income for a long time. 

The second way is no less attractive. You can buy real estate with the intention of reselling it later and get a one-time profit from the difference in value. 

And, of course, it is possible to buy real estate, rent it out, and then resell it, increasing the chances of income several times. 

However, it should be remembered that any predictions regarding future profitability are indicative in nature and are not 100% guaranteed profit. The real estate market often changes both in plus and in minus, so the investor should be ready for any scenario.

Dubai

It is this emirate that has secured the status of a city in which nothing is impossible. Here is the highest possible standard of living and security, and hence the high demand for renting and buying real estate. Undoubtedly, Dubai is the emirate with the most developed rental market. It is here that many expats come and every year the population in Dubai is growing. 

According to a report from REIDIN for the second quarter of 2023, Dubai's population has again increased by 100,000 people compared to the first six months. There are many pros to investing in Dubai: 

Variety of offers: you can invest your capital in both studio apartments,

luxury apartments, townhouses and villas. 

The process of buying real estate is as safe as possible. All

transactions are regulated by the Land Department, so the risks are reduced to

zero. 

No real estate taxes. 

It is in Dubai is located the most famous island - Palm Jumeirah. Many

people dream of living in this emirate for the best view from the window of

apartments.

Abu Dhabi

Abu Dhabi is the largest and richest emirate. It has very beautiful beaches, as well as unusual attractions, so the tourist traffic is getting bigger and bigger every year. For foreigners, the real estate market with free zones opened in 2019 and this has certainly attracted a lot of investors. 

Many people call Abu Dhabi a green city or a garden city, and it is not surprising: the authorities of the emirate take care of creating new picturesque reserves and luxurious parks. 

It is in Abu Dhabi that the extraordinary Louvre Museum is located, and three more museums are planned to be opened by 2026. Of course, all these attractions attract tourists, so short-term rent here will definitely be profitable for the investor.

What else is economically advantageous real estate of the emirate?

The process of buying real estate here is identical to buying apartments

in Dubai. You can make the entire amount at once, use the split payment from

the developers or buy real estate in the mortgage. 

The rights to own real estate in terms of the law are also identical to

those in Dubai. Here there are freehold and leasehold zones, which allow

foreign investors to get the purchased real estate in their full ownership. 

At the same time, the ownership tax here is lower than in Dubai and is

only 2%. 

Some developers have the most favorable conditions: for example, they can

return the funds that went to pay the duty, or offer free maintenance of

purchased apartments.

Abu Dhabi has the highest quality of education, which makes real estate

in this emirate interesting for long-term rent. 

Based on data from the Department of Municipalities and Transport (DMT), the total value of real estate sales and purchase transactions in Abu Dhabi for the first quarter of 2023 amounted to AED 11.602 billion. Last year, this result was almost 3.5 times lower at AED 3.633 billion.

Sharjah

Sharjah is the third largest emirate and is about forty minutes from Dubai. Despite its strict laws, this emirate is popular with tourists and locals alike. Sharjah is a very conservative place, unlike tourist Dubai, but investors are increasingly inclined to invest capital in this emirate. Sharjah has its own advantages for this purpose: 

Good transportation accessibility. Sharjah is the only emirate that

borders with all the others. 

Investing in real estate in Sharjah, you can encounter more attractive

conditions. The quality of residences remains high, but the price will be much

lower than in the same Dubai. 

Freehold zones appeared here not so long ago: only at the end of 2022.

This has affected the popularity of Sharjah, so the demand for ready and under

construction objects has increased by about 30%. 

Ras Al Khaimah

Ras al-Khaimah is the fourth largest emirate. It is located in a picturesque place with a mild climate and clean sea, about 45 minutes by car from Dubai. Above all, it is a resort, so the emirate is ideal for vacation, as well as for permanent

residence with the family or investing in resort real estate. 

Recently, Ras al-Khaimah has become one of the most promising destinations for a profitable investment of one's capital. A few years ago, this emirate was not so famous and popular, but today more and more are coming here not only vacationers, but also investors. There are several reasons for this: 

Buying housing, unlike Dubai, is cheaper here.

Loyal legislation and ease of obtaining investment residency. Here there

is no minimum investment threshold for obtaining a residence permit. 

Active development of tourism. By 2027, the largest casino will be built

on Al Marjan Island, which will significantly affect the economy of the

emirate. The opening of the casino will also attract a flow of tourists

(expected from 20 to 60% depending on the year of operation).

Tax at the conclusion of the transaction on the transfer of ownership is

not 4%, but 2%. In Ras al-Khaimah the remaining two percent is paid by the

developer and this scheme is not a bonus, as in Dubai, and is enshrined in

law. 

Such nice bonuses and loyalty due to the fact that Ras al-Khaimah is trying to maximize its investment attractiveness, which is, of course, very profitable for people who want to invest in foreign real estate. 

In addition, Ras Al Khaimah expects to become a kind of hub for those involved in cryptocurrency. It is planned to give those involved in this sphere the opportunity to open companies on favorable terms.

Ajman

Another valuable emirate for investment is Ajman. This emirate is rightly considered the smallest, but its popularity does not change. From Ajman you can easily get to Dubai in about half an hour. Despite the size of the emirate, tourism is highly developed here: beautiful beaches and lack of hustle and bustle make Ajman very tempting. However, those who like activity will not be bored. For example, the center of Ajman is a bustling business district, which has shopping centers and entertainment venues. 

The pros of Ajman for investors: 

The business sphere is maximally developed here: it is in Ajman that the

central offices of large companies are located and more and more business

centers are opening. Therefore, those investors who want to open a business in

the United Arab Emirates should consider the Ajman Free Zone. It has its own

undeniable advantages. For example, there are no taxes on annual income above 102,000 dollars. Also here are low rents and one hundred percent business ownership, even if you are a foreign investor. 

To some extent Ajman lags behind other emirates in the level of

development, but the demand for housing here is very high. If you invest your

capital in real estate in Ajman, there is a chance to resell in a few years an

apartment or house with a significant profit. 

Tourists often choose Ajman as a place to rest, as life here is more

measured than in the capital. But, for all its quietness, to get to the busy

Dubai is not a problem. Therefore, it is in Ajman you can earn good money on

short-term rentals.

A selection of high ROI real estate offers in the UAE

More often than not, it is the location that becomes the decisive factor that determines the profitability of investment. If you are in doubt about choosing an emirate, our managers will be able to answer all your questions. 

However, there is another way of profitable investment. Some developers are so confident in their projects that they guarantee the payment of ROI (Return on investment) in case of full prepayment of the cost of the object, without loans and mortgages. Our experts have calculated how much the expected return on investment from this or that deal will be. 

Dubai

Dolce Vita 

Developer: Vincitore Real

Estate Development LLC

Guaranteed return on

investment (ROI) - 8% per year for 8 years. 

Cost from $347,445

Portofino Hotel

Developer: The Heart of

Europe 

Guaranteed Return on Investment

(ROI) - 8.33% per year for 12 years, 

Cost from $854,306

Abu Dhabi 

Bloom Arjaan by Rotana Hotel

Guaranteed Return on

Investment (ROI) - 4% to 8% per annum for 5 years (with increases once a year)

Sharjah 

Aysha Residences 

Developer - Eagle Hills

The discounted price of the apartment will start from AED 1,287,888.

If the investor invests in the real estate amount of at least 50.1% of the value (1,287,888 AED) - 645,232 AED

Guaranteed return on investment (ROI) - 12.8% per annum for 4 years. 

Ras Al Khaimah 

Cape Hayat

Developer - RAK Properties

The cost of the apartment will be from 2,015,000 AED

If the investor invests in the real estate amount of at least 50.1% of the value (2,015,000 AED) - 1,009,515 AED.

Guaranteed return on investment (ROI) - 12.8% per annum for 5 years.

Ajman 

Ajman Creek Towers

Developer - GJ Properties

The cost of the apartment will be from 630,488 AED

If the investor invests at least 50.1% of the value (630,488 AED) - 315,874 AED. 

Guaranteed return on investment (ROI) - 12.8% per year for a period of 4 years

* Return on money invested or return on investment