International Investment

INVESTING IN DUBAI FROM THE UNITED KINGDOM

TOP UK INVESTOR

DESTINATION

Dubai property has been and will continue to be one of the most popular and performative investments for UK investors.

Top 5 capital growth performance globally
#2 safest city in the world
5-7% average rental yields
Attractive visa process
World’s top destination for Foreign Direct Investment
Less expensive per sq.ft. than London

Since Dubai opened its doors to overseas investment two decades ago, UK investors have found it to offer some of the strongest returns available anywhere in the world.

Now, as the UK is expected to hit a period of economic uncertainty, the pull of Dubai property and the emirate’s booming economy are more enticing than ever before.

ONE OF THE WORLD'S STRONGEST PROPERTY MARKETS

The UK economy is struggling. Growth prospects post-Brexit and Covid-19 are still lagging behind other countries. In February 2023, after the UK narrowly avoided an official recession, the Chancellor warned that economic forecasts remain grim.

Even if the UK wasn’t set to experience a gloomy and stagnating property market and high-interest rates, many investors would still be looking at Dubai real estate, thinking the future of their investments would be brighter there.

WHAT DO UK INVESTORS NEED TO KNOW?

Dubai property is changing.

Previously investors knew they were speculating in a boom-bust cycle. And that was compelling for many Brits. Back in Gold Rush years following the opening up of the Dubai property market for Foreign investors, a time in which some of the biggest capital appreciation spikes of all time were recorded, Brits were the third largest cohort of investors – behind only Emirates and Indians.

However, investors now find a very different property market, one that resembles London 20 years ago.

Last year saw the emirate record double-digit capital gains increases, a growth rate that was twice the global prime average.
This was following a record-breaking 2021, in which the Dubai market saw industry sales transactions totalling AED 151 billion (USD 41 billion). Not only was this huge demand 110% more than the previous 12-month period, it was also much higher than even pre-pandemic investment levels – recording a 90% and 55% rise in value and volume respectively.

As for yields, Dubai property is currently offering a very strong rental yield, certainly compared to other investments or even UK prime property. Investors in London property struggle to get a 3% annual rental return on investment, in Dubai investors are recording 7% fairly easily.

RENTAL RETURN:

DUBAI VS LONDON

Dubai

0 %

London

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“Dubai’s record FDI inflows and top rankings testify to investor confidence in its stability and reinforce its status as a strategic partner to foreign investors.

“We remain committed to enriching Dubai’s enabling business environment to explore fresh growth avenues with our partner investors to achieve even greater success in years to come.

“In a world facing profound challenges over the past few years, Dubai offers one of the safest and most stable business environments, boosting investor appetite.”

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum

TAX BENEFITS OF DUBAI PROPERTY INVESTMENT

Dubai remains notable for its very favourable taxation rules. This approach has helped investors maximise the return of any property investment they make in the emirate.

Of course, tax status, implications and advice are best discussed at an individual level, and that is something we can help all our investors navigate should they choose to acquire property with our aid.