Dubai's real estate market is poised for significant growth in 2023, according to recent research from a Dubai-based PropTech company. The data showed that the emirate's property prices grew by 20-40% over the past 12 months, with some areas experiencing even greater growth. Let’s delve into the most interesting findings and predictions for real estate for sale in Dubai in 2023.

The major buyers of Dubai property

Dubai's market experienced a surge in demand as it emerged as a safe haven for private wealth fleeing geopolitical instability worldwide. The city attracted entrepreneurs and investors seeking stability and security, resulting in a significant influx of Russian businesses and top-level professionals. Many laid their eyes on the emirate due to its sunny weather and exceptionally competitive urban pace balanced with serene green areas suitable for families and retirees.

The city's status as a tourist attraction and finance hub in the region was further cemented with the successful hosting of the 2022 FIFA World Cup in Qatar. This further boosted the real estate market, as it became a prime tourist destination.

The World Cup in Qatar brought not just an influx of tourists, but also a large number of private investors seeking to capitalize on the potential opportunities in the region. The sales volume and value of off-plan and secondary properties were forecasted to hit a 12-year high. This increase in demand for housing and commercial objects has been attributed to the World Cup.

Dubai's visa programs and affordable housing compared to other major cities like New York and London also contribute to its popularity as an investment destination. With rental prices increasing by 50% in the three months leading up to the World Cup, many investors saw buying apartments to rent them out as a wise investment strategy. Dubai's stable political and economic situation, combined with its high quality of life, makes it an ideal location to store and grow capital. To find available real estate options, check out the https://www.axcapital.ae/ official website.

It is expected that even more entrepreneurs are going to come to the emirate in 2023, as the new “Green” visa program is about to be launched. It allows one to apply for a five-year residence permit, given that the person is either a young talented specialist, an independent worker, or an investor getting ready to set up a business in the UAE.

The tax policy in the Emirate

The city's stable economy, strong infrastructure, and attractive tax policies also played a key role in attracting private wealth. Dubai is considered a prime destination for property investment due to its low tax rates compared to other large cities in the world. The city is known as a "no tax" emirate and is attractive to investors and residents alike because of its oil and trade revenues. Instead of direct payments, the government imposes a monthly "housing fee" and a 4% transfer fee when buying or selling a property.

There are only a few taxes related to real estate in Dubai: 

• A one-time 4% land registry fee is applied upon making a deal. This fee is split between the seller and buyer, with each paying 50%. The fee is calculated based on the contract sales-purchase price of the property and is payable to the land department on the day of the ownership transfer.

• Rental properties can be subject to a 5% tax from the tenancy contract value, which is paid by the tenant and added to the utility bill. 

• Commercial properties have a tax of 10% and are processed the same way as residential properties. Given the simplified system, yearly declarations are not necessary, as payments are collected automatically and are minor.

• Finally, there are no inheritance taxes, and a regular 4% ownership transfer fee is applicable at the time of ownership transfer under inheritance.

The most expensive areas of Dubai in 2023

The data showed that average prices in Dubai varied from Dh 425,000 to Dh 12,042,618 and that the most expensive areas included Trade Centre First and Al Wasl Part 2. Meanwhile, districts with green areas, such as Dubai Hills, attracted families seeking a more tranquil living environment and experienced significant growth of 53%.

Most areas that saw rapid growth in 2022 have reached their price limit and are expected to grow moderately through 2023, with experts predicting a 5% increase in prices in Palm Jumeirah.

Moreover, Dubai's strategic location at the crossroads of Europe, Asia, and Africa has made it an important hub for global trade and commerce. This, coupled with its thriving tourism industry, has made the city a top choice among people throughout the world. The city's stable economy and consistent growth make it a secure and profitable place for investment in 2023 and beyond.