Essential guidance on acquiring real estate in the United Arab Emirates
In the bustling city of Dubai, Russian investors are making a significant mark in the real estate market. Their key considerations revolve around stability, luxury, and ready-to-move-in beachfront properties, such as those found in Emaar Beachfront and Dubai Marina.
The allure of Dubai lies in its reputation as a safe and stable investment destination, combined with the appeal of luxury living and waterfront locations. This combination has drawn Russian investors to the city, seeking properties that offer immediate occupancy and a desirable lifestyle [1][3].
Navigating the legal and traditional aspects of Dubai's property market is essential. Understanding the city's property laws and ensuring all transactions comply with local regulations is crucial. Engaging with experienced real estate agents is vital to navigate market complexity, discover hidden costs, and verify property legitimacy. These agents also provide insights on long-term rental yield and resale potential, aligning with Russian investors' goals for stability and profitability [2].
Emaar Beachfront and Dubai Marina are two prominent locations favoured by Russian investors. Emaar Beachfront is highly sought after for its luxurious beachfront apartments, while Dubai Marina is popular for its vibrant waterfront lifestyle and luxury properties. Other emerging areas, such as Dubai Hills, Emaar South, Dubai Creek Harbour, and Sobha Hartland, are also mentioned in the market, but Russians tend to prioritize waterfront and ready-to-move-in luxury developments [1][2][3].
Vadim Kamalov, a real estate market expert, notes that the average rental yield in Dubai is around 8% per year. The majority of investments in Dubai are in apartments, which are typically 100-120 square meters with one or two bedrooms and a kitchen-living room. Dubai's real estate market is growing and shows good returns, particularly in certain locations, although they are not cheap [1][3].
The Dubai real estate market is predicted to grow by 40% by 2030. This growth has been facilitated by the UAE's protection of investors' funds and lack of asset freezing compared to Europe, making Dubai an increasingly attractive destination for Russian investors [1][3].
Foreigners can stay in Dubai indefinitely if they purchase property worth over 700,000 dirhams, which grants a resident visa. However, it's important to note that Dubai is a monarchy, and elections are not held, with no voting rights for anyone [1].
When choosing a realtor, it is crucial to trust only those companies and specialists who have been in the market for at least 5 years. The Dubai real estate market is transparent, allowing one to see every transaction in any building in the chosen location [1].
Joint projects between Russian and Dubai companies in the real estate sector are rare, but many Russian companies try to enter the market independently. However, many investors have experienced losses due to lack of market analysis and trust in unqualified realtors [1].
The Dubai real estate market has a recommendation for new investors: start with small investments, such as buying studios or one-bedroom apartments in popular locations. Areas with metro access or under construction, as well as coastal territories, are considered promising for buying and investing in real estate [1].
For investors planning to invest for resale, it is advised to find a promising area and buy a new construction with installment plans, as the property value may increase by 10-15% or more during construction [1].
When buying property in Dubai, it is advised to write a will to ensure property rights are protected. The Emirates is attractive to investors due to the absence of personal taxes, low corporate tax rates, and zero tax on personal investments [1].
Dubai offers affordable healthcare with insurance and high-quality education. Unlike a tourist visa, a resident visa allows for indefinite stay and does not give the right to work [1].
In 2022-2023, Russians were the leading investors in Dubai, but now, Indians have taken the lead [1]. Despite this shift, Dubai remains an attractive destination for Russian investors, offering a stable and lucrative real estate market in the heart of the Middle East.
(1) The growth of Dubai's real estate market, combined with the allure of luxury living and waterfront properties, has drawn Russian investors to prioritize investments in locations like Emaar Beachfront and Dubai Marina.(2) Seeking properties that offer immediate occupancy and a desirable lifestyle, Russian investors are also examining emerging areas such as Dubai Hills, Emaar South, Dubai Creek Harbour, and Sobha Hartland, but they tend to prioritize waterfront and ready-to-move-in luxury developments, which can also be found in sports complexes if they meet the investors' standards.
