Real Estate Investments in Dubai – A Brief Overview

Since the COVID-19 pandemic, Dubai has established itself as a preferred destination for tourism and migration of residents from around the world. Since 2021, real estate prices have risen by an average of 15% per year, starting from a comparatively low level relative to European metropolises. Nevertheless, real estate prices in Dubai remain very moderate by international standards.

Several indicators point to a strong increase in demand in the coming years. For example:

  • The UAE is experiencing significant population growth. Dubai’s population is projected to reach 9 million by 2040 (currently: 3.5 million).
  • The UAE attracts the highest number of High Net Worth Individuals (HNWIs) worldwide.
  • According to International Monetary Fund forecasts, per capita GDP is expected to grow significantly more in the medium term than in any EU country or the USA.
  • First-class infrastructure, low inflation, high security, affordable energy, attractive tax rates, and a high lifestyle factor all support long-term economic growth.

Currently, existing properties offer rental yields of around 6-8% net, in addition to capital appreciation. With off-plan projects, higher rental yields and appreciation are possible. This largely depends on the type of property and location. German Partners provides investors with extensive data on this.

From an investment perspective, the diversification aspect is also important to consider. We offer investors up-to-date data and insights into interactions with other asset classes and investment properties in other countries.

On the supply side, there are a wide variety of high-quality real estate projects and new master communities, whether ready to move in or off-plan, in the mid-price segment or as luxury real estate.

In the area of capital investments, not all projects that are designed and marketed as investments hold up under closer scrutiny. Often, there are problematic aspects that can hinder long-term value appreciation. This is where real estate investors need a strong partner to develop a sustainable investment strategy that meets their expectations.

German Partners has over 10 years of market experience combined with expertise in economics and finance. Our data-driven investment approach identifies advantageous projects and development potential while transparently highlighting risks. We don’t just address the preferences of our clients on a project level – our proprietary investment calculation model allows investors to adjust assumptions or forecasts to their own expectations. As part of our investment mandate, we offer:

  • Detailed due diligence reports on interesting real estate projects, which take into account economic aspects as well as ESG factors.
  • An investment calculation with risk scenarios and customization options tailored to the client’s expectations.
  • Comprehensive support up until the receipt of the title deed and beyond, in collaboration with highly specialized partner companies, offering all necessary services for managing the investment.

Learn more about the promising investment opportunities in the UAE real estate market. Our expert team will assist you in your decision-making process and offer investment advice tailored to your needs. Let’s work together to successfully implement your investment strategy and achieve sustainable value growth.

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