Three-Thirds of Dubai’s Real Estate Buyers are Foreigners

Dubai earns billions from the sale of top-notch real estate properties annually. The question is who are the rich property buyers and where does their money originate from?

Based on Christie’s International Real Estate research, Dubai has attracted much more High-Net-Worth Individuals (HNWIs) who have purchased property in comparison to other popular destinations like the UK and the USA. In actuality, Dubai has become the most attractive and popular city for second residences amongst HNWIs internationally. Additionally, the research revealed that HNWIs purchased the most luxury properties in Dubai as opposed to Emiratis during the previous year.

Eighty international property markets were included in Christie’s International Real Estate survey, which purpose was to reveal where the wealthy prefer to purchase luxury properties. Dubai was ranked first, whereby three-thirds (75%) of its property purchasers were foreigners. In contrast, only 44% and 40% of HNWIs preferred London and Miami respectively for the acquisition of luxury property.

The results of the survey revealed that most of Dubai’s property buyers come from Russia, the UK, Germany, the Gulf as well as the Commonwealth of Independent States (CIS).

These wealthy international buyers usually spend $3 to $5 million on the purchase of a luxury flat in Dubai. The price of the property differs according to the size, location and real estate developer.

Apparently, property prices that fluctuate between $3 to $5 million represent upper-scale market properties, which also include luxury properties. However, luxury apartments can also cost well above $10 million. HNWIs are attracted to Dubai because of the city’s travel accessibility, investor as well as business-friendly environment, tax-free systems and general innovative and dynamic flair. Dubai is favored amongst international wealthy buyers because they view purchasing a property within a city where foreigners dwell, that is known for its dynamism and is tax-free a suitable jurisdiction to acquire property.

Although property buyers are not subject to Income Tax or any other kind of tax, since the Dubai is well known for its tax-free regime, this is not the only reason HNWIs prefer the city. Dubai’s friendly investment and business-orientated environment are also key features the HNWIs take into account when looking for property.

Dubai is also attractive due to its strategic location. Having property in Dubai means, an individual also has easy access to Asia and Europe, a fact that also benefits HNWIs.

However, a property market that depends on international investors is more influenced by the economic happenings and situations of other countries. For instance, Uruguay’s property market marked a downfall due to Argentina’s economic ebbs during the previous year.

The Dubai Land Department has revealed that HWNIs spent approximately Dh12 billion during the first three months of 2015 on the acquisition of property.

Wealthy buyers looking to acquire luxury property, spend a minimum of $2 million. Beverly Hills is home to the most expensive luxury properties where prices begin from $8 million.