16 reasons to buy property in Dubai: Your key to a lucrative investment

Why Dubai as a real estate destination?

Dubai has not only established itself as a luxury destination, but also as one of the most attractive and stable real estate markets in the world. The Emirate combines a strong economy, a strategic location, advanced infrastructure and a dynamic political environment — all key framework conditions that make it an excellent destination for real estate investments. The high demand for real estate in Dubai, combined with favorable tax regulations, high rental returns and a wide range of real estate options that offer long-term value enhancement potential, make the city a preferred choice for international investors.

Here are 16 compelling reasons why you should invest in real estate in Dubai:

1. Political stability and security

Dubai offers a politically stable environment and is one of the safest cities in the world. The United Arab Emirates (UAE) is characterized by a stable government and an efficient legal system, which provides investors with a high level of security. The low crime level and stable political environment make Dubai an ideal place to invest as it minimizes the risk of political or economic instability. This security is particularly important for long-term investments.

Another important factor is the Dubai 2040 Plan, which sets a clear vision for the future development of the city by 2040. This long-term plan includes sustainable urban development, improved infrastructure and innovative projects that will further strengthen Dubai as a global hub for business, residential and leisure activities.

2. Growing economy and infrastructure

Dubai has been growing steadily for years and continues to diversify. The economy has not only relied on oil and gas, but has also relied on the development of technology, tourism, real estate and financial services. Dubai recorded economic growth of 4.6% in 2022 and the city is expected to continue to cement its position as a global trade hub in the coming years. The city is continuously investing in innovative infrastructure projects, from new high-rise buildings to smart city initiatives, which further boost growth.

3. Strategic location and international connection

Dubai is located at one of the world's most important transport hubs, connecting Europe, Asia and Africa. This makes the city a center for international trade and business relations. Dubai International Airport (DXB) is one of the busiest airports in the world and provides excellent international connections. In 2023, the airport received around 66 million passengers, and growth continues steadily. This strategic location not only promotes tourism but also attracts companies and investors.

Another impressive infrastructure project is Al Maktoum International Airport (DWC), also known as Dubai World Central. This new airport is intended to replace the existing Dubai International Airport (DXB) in the long term and will be the largest airport in the world when completed. The DWC will have a capacity of 260 million passengers per year and will have five parallel runways. The entire project has a volume of 32 billion euros, with the first construction phase expected to be completed by 2030. Full completion is planned for 2050. This ambitious project will further strengthen Dubai's international connections and make the city even more attractive as a global hub.

4. Legal certainty and clear ownership rights

Dubai offers a highly regulated and transparent legal system that provides buyers with clear ownership rights and a high level of legal certainty. The buying process is clearly structured and well-regulated, so as an investor, you can be sure that your rights are protected at all times. Dubai is considered one of the safest real estate markets in the world in this regard, making it a preferred choice for international buyers.

5. Tax exemption and tax benefits

Dubai offers an almost tax-free environment for investors. There is no income tax, no capital gains tax and no inheritance tax. The only relevant tax concerns companies that have to pay a 9% tax on their profits. However, this tax rate only applies to winnings above 375,000 AED (approx. 93,000—95,000 EUR, depending on the exchange rate). Profits up to this limit are tax-free. This rule applies to all companies registered in the UAE, unless they can claim a “Free Zone Exemption.” This tax exemption makes the real estate market in Dubai particularly attractive, as investors can maximize their rental income and profits without heavy tax burdens.

6. High rental returns

Dubai is one of the cities with the highest rental returns in the world. You can expect a gross rental yield of 6 to 10%, making the city one of the most profitable places to invest in real estate. The stable demand for rental properties remains constant due to strong international demand and the large number of expats. This ensures that your investment remains profitable in the long term.

7. Diverse real estate options

Whether you're looking for an elegant apartment in central Dubai, an exclusive apartment in the Marina, or an expansive villa in Palm Jumeirah, Dubai offers a wide range of real estate options to suit every budget and taste. The variety of property types and locations makes it easy to find the right property that meets your needs.

8. Luxury lifestyle and exclusivity

Dubai is known for its luxury and attracts many wealthy buyers and entrepreneurs. The city not only offers first-class real estate, but also a high quality of life, which is characterized by exclusive amenities such as private beaches, luxurious wellness facilities and first-class restaurants. These factors make Dubai a particularly attractive location for investors who want to invest in high-quality real estate.

9. Low additional purchase costs

The additional purchase costs in Dubai are relatively low by international standards. There is a fee of 4% of the purchase price, which is paid to the Dubai Land Department (DLD). In addition, there are no hidden or high brokerage fees, making buying property in Dubai more cost-effective and transparent.

10. Off-plan real estate: growing market and high flexibility

Off-plan real estate is particularly attractive in Dubai as the city is constantly growing and evolving. These properties often offer flexible payment plans and attractive entry prices. They also offer the opportunity to benefit from a significant increase in value during the construction phase. Dubai has a high number of off-plan projects that are characterized by innovative designs and prime locations, making the market for off-plan investments particularly diverse and fast-growing.

11. Sustainable urban development

Dubai is increasingly focusing on sustainable and environmentally friendly urban development projects. The city invests in green construction projects, smart city technologies and energy-efficient buildings, which makes both ecological and economic sense. These sustainable initiatives not only increase the value of real estate, but also help Dubai to be recognized as a leading example of environmentally friendly urban development worldwide.

12. Long-term investment security

Dubai's continuous development and economic growth offer investors long-term security. Even in difficult economic times, the city remains an attractive option for investment, as it focuses heavily on diversification and innovation. In addition, the real estate markets are stable due to high demand from home and abroad, which ensures the long-term profitability of your investment.

13. Low additional costs for owners

The annual additional costs (“service charge”) for owners in Dubai are usually between 12 and 30 AED per square foot (equivalent to around 30 to 75 euros per square meter). Even more luxurious properties rarely exceed 100 euros/m²/year. In addition, there is no property tax or other annual property taxes in Dubai. This makes buying real estate particularly attractive compared to other major cities and makes running costs for owners very calculable and low.

14. For digital nomads and remote workers

Dubai has established itself as an international center for digital nomads and remote workers. With excellent Internet, modern co-working spaces and a high quality of life, the city offers ideal conditions for people who want to combine work and leisure. This development also makes Dubai attractive for investors who want to invest in real estate used by this growing target group.

15. Family-friendly infrastructure

Dubai offers excellent infrastructure for families, including top-class schools, hospitals and leisure facilities. Family-friendly residential developments and a high quality of life help make Dubai a preferred location for families. These developments are creating strong demand for family-friendly properties.

16. Golden Visa as Plan B

The Golden Visa program in Dubai offers you and your family the opportunity to obtain long-term residence status. This is not only an added benefit to your quality of life, but also a valuable option if you're thinking about a second home or a long-term stay option. The purchase of a property worth AED 2 million or more gives access to this visa, which is valid for 10 years and can be extended.