Why is the UAE a Hot Spot? Pun Intended.

Chesterfield Gordon is engaged with a few developers selling their properties in Abu Dhabi and Dubai, so what is all the fuss about?

Tax regime is very favourable, especially with UK landlords feeling the squeeze, we are finding landlords can sell a chunk of their portfolio (or all of it) and move money into other investment areas, including the UAE real estate market which can offer attractive returns. For example a 2 bedroom flat in Abu Dhabi sets you back approximately £450,000 sterling (prices correct at time of writing this) off plan which will appreciate 8-10% a year for 3 years. Meaning by the time you pick up the keys, the flat will be worth approximately £600,000 sterling. Earning circa £150,000 sterling, yes please! We can't find any real estate market offering the same ROI. Rental payments in UAE are made either quarterly or half yearly or a year in advance which brings safety to landlords. This payment security makes it a safer asset class.

Additionally £450,000 is the magic number (correct at time of writing this) to benefit from a 10 year "Golden Visa" meaning you can travel in and out the region freely and benefit from the tax free regime.

The weather. Do we really need to go there?

Dubai is a known as a business hub in the Middle East but Abu Dhabi is quickly becoming a financial centre (and cultural hub) for the region and both are accepting crypto as a form of payment to buy real estate. Abu Dhabi has also been voted the safest and richest city in the world for 7 consecutive years and the intention is to keep it that way.

Recent articles on UAE from the Times & Sunday Times showed a statistic that around 30,000 Brits a year were relocating to the region since Covid-19. This year though that number is predicted to be around around 250,000! This does not take into consideration other nationalities like Indians, Russian and Chinese etc.. who are also coming in droves. Competition to secure a property is fierce. The quicker you are able to move the higher your chances are to secure a property. It is not uncommon for a developer to release a site and being sold within hours on that same day!

Keeping the above in mind and despite how many projects are being built there is already a property shortage which, if you are familiar, means prices are likely going one way...

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^{Disclaimer - price of real estate is subject to change from the developer at any time. This is not financial advise and recommend you do your own research before making any commitment.}