4 Reasons Why Dubai is the New Investment Hotspot for Singapore Investors

When asked about property investment, most savvy property investors in Singapore would typically associate that question with popular real estate markets such as UK, Australia and even Japan.

Dubai is a relatively new investment destination for most property investors in SEA, yet that is now fast changing. For the past year, many of the property investors in SEA have shifted their sight to newer under-the-radar investment destinations such as Dubai. For that reason, let’s take a look at 4 reasons why Dubai made the list.

Investing in Dubai is Tax-Free

For years now, Dubai has been widely regarded as a regional and global centre for business with its real estate market compared to the likes of global real estate markets such as New York and London.

One of the major perks of investing in Dubai is that it is a tax free city and there are no residential property taxes. Anyone who has ever invested in foreign property and paid capital gains tax will know how big of an advantage this is.

Property investors will also want to ensure that their property is a home that others will want to lease. The tax free environment makes Dubai an incredibly appealing place for professionals to move to and work at which in turn, provides for an ideal combination of no capital gains tax on your property and a steady demand for homes in Dubai.

To maximise your potential, do ensure that your home is built by reputable local developers and is located in an area where housing is in demand.

Rental yield that is more attractive than other global cities

Property prices in Dubai are relatively affordable compared with other global cities such as London, Hongkong, etc. Despite that, it is one of the fastest growing economies in the world at a time when many of the other global cities have showed signs of slow down.


The average rental yield hovers around 7% in the main areas of Dubai but can be as high as 10% in certain areas where there is strong housing demand. With bank interest loans hovering under 4% this makes investing in Dubai property attractive for professional property investors.

Dubai is Pro-Foreign Investment

For foreign investors, entering the Dubai market is a relatively straight forward process with minimal paper work.

Foreigners are also allowed to have freehold ownership of the property in freezone areas, this means you will own the land on which the property stands on.

In addition to that, Dubai is a pro-landlord market and the law protects landlords from some of the typical issues that may befall property investment owners. For instance, non-payment of rental fees or even maintenance fees. It is common for landlords to require a one-year payment of rent upfront, which is not practiced in any other global cities.

World Expo 2020 plus a fast growing expat population

The World Expo 2020 is scheduled to be held in Dubai and the UAE government is expecting ~25 million visitors to Dubai during this Expo which is further expected to boost tourism and trade. Analysts have estimated that the World Expo 2020 win will create approximately 300,000 new jobs and will boost Dubai’s economy by a staggering $23 billion.

Even without the announcement of World Expo 2020, there has been a large and fast growing community of expats who come to Dubai on work contracts for a stipulated number of years or even months. Many of these expats choose to rent a home during their stay with their employment contracts typically in the form of one-year renewable contracts that are paid in advance to them.

With the combination of World Expo 2020 and the high expat population, it offers property investors an excellent opportunity to benefit from this anticipated rise in demand in the coming years.

Emaar Property, the leading Middle East developer

Emaar Properties, a Public Joint Stock company established in 1997, is one of the world’s most valuable real estate development companies. Having built some of the world’s most recognized architecture and communities, such as Downtown Dubai, the home of Burj Khalifa and Dubai Creek Harbour, Emaar is defined by its ability to deliver new breakthrough lifestyles with a focus on timeless design and build quality.


Emaar has earned a reputation among property investors, on the back of a string of successful projects that has achieved significantly above benchmark rental yields of 8% and in some cases, even higher.

Two particular development that stood out includes South Beach and Rove City Walk.

South Beach is a premium residential beachfront development in Emaar Beachfront that offers a unique blend of cosmopolitan living and a serene seaside lifestyle. Comprising of 1-, 2-, and 3-bedroom apartments with exquisite furnishings, this will be the first waterfront development to be listed on Ease by Emaar for visitors to experience the epitome of leisure, comfort and lavish living.

For guests, Ease by Emaar opens a new avenue for visitors to experience a premium lifestyle located in some of the most sought-after destinations in the city. Guests are provided with unrivalled hospitality such as hotel-grade housekeeping and amenities, and a digital mobile concierge. Guests can also get an ‘Ease Pass,’ which provides unbelievable offers and deals to the city’s major attractions.

All in all, properties by top developers in prime locations can produce a 6% – 10% rate of return even after deductions for maintenance. With the World Expo 2020 happening in Dubai, the real estate market of Dubai is bound to experience an uptick during that period. This makes 2019 an excellent time to invest for property investors who are interested in Dubai.

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