Dubai real estate investment
Plano, TX · Member since 2017 · 19 posts · 4 votes
I am a USA citizen and do not have much knowledge or trips to Dubai, but interested in investing in Dubai Real estate.
CAn some one shed me some lights on how foreigner can invest in Duabi, which firms that I can go through, who are reliable and keep my investment safe and able to get some decent returns, and what are the tax consequences for earning potential from outside the country?
appreciate all the input.
Newbie
Dubai is the highest volatility market i have come across as an investor. This means it can be very profitable if you buy at the right time, but can be brutal if you buy at a peak. The markets offer low to medium gross yields that max out around 7% if you buy in todays market. This is significantly lower than the mid west in the US.
A really nice thing over there is that rents are often payed once per year.
Dubai have a very consentrated power and decision organ which leads to very low predictability. Its awesome to see how fast Dubai is changing, but in real estate investing you want slow and steady. I admire the rulers of Dubai for their vision and ability to put those into life. But it make it hard to predict the future. For that reason my money is elsewhere.
You are almost never alowed to do your own renovations, and have to pay an application fee to get approval to do work on your rental. The labor is cheap but is usually terrible quality.
You have very little insight into the governments plans for development and i have seen that have amazing impact on some areas and terrible impact on others.
If you are going through with the purchase i wish you good luck and urge you to consider traffic patterns. Traffic is horrible at peak our in certain areas and you will do well to look into that.
Last i want to say that i have not really seen rents fall significantly in many markets, but in dubai i see it frequently. So buy with good margin for reduced income.
@Charles Rosenbaum can you please elaborate on why you say its considered one of the safest places to invest? My current understanding of the market make me disagree completely with that statement, so what have i missed?
@Sonu Sundar - I evaluated Dubai real estate investment last year, as the cash flow seemed reasonable, and the appreciation potential looks significant. However, required downpayments were typically 40-50%, and would be difficult without a residency visa. When I ran the numbers compared to US real estate, the added leverage potential here meant that it was not worth the additional hassle to continue investigating Dubai.
@Charles Rosenbaum - I would love to hear if you've found something that would prove my assumptions wrong!
I have a premium condo in Dubai that cash flows $10K per month and price is less than $1M. The appreciation is more than 10%. The main thing is to stick with great location and premium properties. The premium LTR and STR tenants have a lot of money there and without residency one cannot be an LTR tenant. That helps get good rentals from business executives who travel there. For 2M aed, you get residency. The challenge is that in US, for that kind of premium property, you have to shell out north of $3M. Also, when interests were low in US, Heloc used to be a good option. But it's a bubble and they are making a lot of changes in the laws to continue that bubble. Location is the most imp thing there. The strategic location view is
1) It is the USA of the middle east
2) Very close and safe travel destinations for Europeans and Asians
3) Direct flights to every big city in the world London, Sydney, SF, LA, you name it
4) Safe haven for lot of Internationally floating money
5) Good investments in tech, healthcare, infra and education.
So, I invested and the vision/execution is good to where they were just in the past 20yrs. The fundamental thing is also that in Asia and Middle East, the jobs & buying power of people have skyrocketed exponentially in the past 10yrs, much better than western countries today. They project doubling of population by 2040. Hope this helps.
It sure is the NEXT USA of the world here in Dubai! I can 100% agree with the above.
Im British and have been living in Dubai myself 13 years, I bought a property last year and it has already appreciated 50% in just 10 mths , thats 100% ROE on what I put in as it was an offplan property!
I also sell real estate in Dubai with Keller Williams so very happy to guide you too if you want more info.
HI there
I live and own property here in Dubai. Im British and have been in Dubai for 13 years also selling real estate at Keller Wiliams so very happy to help with any questions you may have.
So I bought my own property here in Dubai last year, an offplan townhouse at 2.1 mill aed , today it is worth 3 mill aed! I paid just half of the price on it and have now made 50% appreciation on an unfinished home ..or 100% ROE on what I have actually paid. Im happy to run through this with anyone who may want to know more on Dubai real estate.
I will be speaking in Las Vegas for KW in 2 weeks on global luxury real estate also.
HI there
I live and own property here in Dubai. Im British and have been in Dubai for 13 years also selling real estate at Keller Wiliams so very happy to help with any questions you may have.
So I bought my own property here in Dubai last year, an offplan townhouse at 2.1 mill aed , today it is worth 3 mill aed! I paid just half of the price on it and have now made 50% appreciation on an unfinished home ..or 100% ROE on what I have actually paid. Im happy to run through this with anyone who may want to know more on Dubai real estate.
I will be speaking in Las Vegas for KW in 2 weeks on global luxury real estate also.
Hi @Lucy Parker, how is the Dubai real estate now for US folks to invest in Dubai?
Has anyone hear of this company? They are offering free flights to Dubai and 5 star stays and guided tours for looking at investment properties. https://www.dubailuxurypropertyshow.co.uk/, One Investments.
I am a British realtor living and selling real estate in Dubai for the past 13 years. ANY company or developer that has to give you a free flight, hotel or car stay WELL AWAY... they have to do that for a reason as they dont have a good reputation locally.
Happy to advise for anyone wanting further UAE knowledge on real estate. Im also a home owner here and doubled my money in just 9 mths..but NOT all properties and NOT all developers are the same so BEWARE.
HI there
I live and own property here in Dubai. Im British and have been in Dubai for 13 years also selling real estate at Keller Wiliams so very happy to help with any questions you may have.
So I bought my own property here in Dubai last year, an offplan townhouse at 2.1 mill aed , today it is worth 3 mill aed! I paid just half of the price on it and have now made 50% appreciation on an unfinished home ..or 100% ROE on what I have actually paid. Im happy to run through this with anyone who may want to know more on Dubai real estate.
I will be speaking in Las Vegas for KW in 2 weeks on global luxury real estate also.
Hi @Lucy Parker, how is the Dubai real estate now for US folks to invest in Dubai?
HI there
I live and own property here in Dubai. Im British and have been in Dubai for 13 years also selling real estate at Keller Wiliams so very happy to help with any questions you may have.
Hi Raju so sorry just seen this message now. you can find me online and directly DM me in that way. The market is VERY strong now for townhouses and villas but I would stay clear from apartments as we have so many in the market and more launching daily....
So I bought my own property here in Dubai last year, an offplan townhouse at 2.1 mill aed , today it is worth 3 mill aed! I paid just half of the price on it and have now made 50% appreciation on an unfinished home ..or 100% ROE on what I have actually paid. Im happy to run through this with anyone who may want to know more on Dubai real estate.
I will be speaking in Las Vegas for KW in 2 weeks on global luxury real estate also.
Hi @Lucy Parker, how is the Dubai real estate now for US folks to invest in Dubai?