The archipelago, named Palm Jumeirah, is often compared to the eighth wonder of the world. The uniqueness of the island is that it is completely man-made. Property in Palm Jumeirah in 2022 attracts wealthy people who appreciate comfortable living conditions and high-quality services. Construction of the project from the UAE’s leading developer, Nakheel, began in 2001. It is based only on natural materials: natural sand, extracted from the seabed, and stones. The development of a unique project engaged a lot of specialists, from environmentalists to builders. Such a comprehensive approach allowed getting the result, which before the plans seemed fantastic. Today, the island of Palm Jumeirah represents the epitome of luxury and remains the main resort in Dubai, the UAE, real estate which has the highest price.
Types of real estate on Palm Jumeirah island in Dubai
You can find housing of varying sizes and degrees of comfort on the island:
- studio apartments;
- apartments with different numbers of bedrooms: from one to six;
- penthouses and duplexes;
- townhouses and villas.
Development is continuing at the moment, which allows you to invest money with more profits.
Real estate investment in Palm Jumeirah, Dubai, the UAE
The profitability of investing in Palm real estate is justified by the stable demand. It is an international resort that thousands of people from all corners of the world seek to visit every year, thereby fueling the housing segment and confirming its high liquidity. Investing in properties in Palm Jumeirah is a choice in favor of a competent and potentially profitable investment.
In 2022 the growth of the Dubai real estate market is breaking all records. In addition, the number of tourists and expats that the emirate attracts from all over the world is increasing every year. Experts believe that in the next few years, the trend will continue. This means that demand for rent and prices will grow, which is beneficial to investors.
Monetizing the apartment or villa for sale in Dubai can be performed through its delivery in short and long-term leases. With a competent choice of location and the object, a return will be 15% per annum. If necessary, the property can always be resold, providing a tangible profit from the constant growth in prices.
Advantages of investing in houses and apartments in Dubai
Along with the prestige of the location of residences on the island and their high liquidity, the following points can be considered as convincing reasons for investment:
Profitable scheme of taxation.
No taxes – the state policy of the Emirates. In the UAE individuals do not pay tax on the acquisition and possession of real estate, as well as on capital gains and rental income. There is no inheritance tax. When a gift is made to a blood relative, no payments are made either. The only thing the buyer pays is a registration fee of 4% of the value of the property. The payment is single and lump sum. No less attractive conditions for doing business in the country. This makes immigration more attractive.
Active real estate market.
The housing market in the UAE is actively growing. Housing prices in the most popular emirate of the UAE in the first quarter of 2022 rose by 7.54% year on year, and the average cost per square meter of an apartment was $6 thousand. The volume of transactions in the metropolis reached a ten-year high. From April to June 2022 the number of transactions exceeded 22 thousand (+9.6% quarterly and +45.2% year on year), and their total value exceeded $ 16 billion. Mainly foreigners and locals bought apartments and villas – the number of such transactions for the year rose by 50.8% and 33.9% respectively. Palm Jumeirah is the leader in the number of villas sold.
Non-residents are given mortgages and offered instalment plans.
The state stimulates the mortgage market, and banks are happy to finance foreigners. Mortgages can be taken on 50% of the cost of an apartment or villa, with a rate – of 3.8 to 4.2% per annum. The loan is formalized for a couple of weeks, a maximum of a month for 10, 15, or 20 years. The loan is issued in the local currency – dirhams, which are strictly tied to the U.S. dollar. Banks have minimal requirements for foreign borrowers. The main thing is to show a bank statement for the last six months or one year (depending on the bank). If a foreigner wants to buy an object in the construction phase, he can use the instalment payment from the developer. Most often, the instalment payment is interest-free and is valid until the completion of construction and commissioning of the object – an average of two to three years. Compared with a mortgage, the timing is short, but there is no need to pay interest on the loan. Plus the object under construction or off-plan is 15-20% cheaper than the already built unit.
“Golden Visas” for homeowners.
In April 2022 the UAE authorities approved the new visa rules and added a number of notable bonuses that simplify immigration. In particular, the law on “golden visas” was adopted. Now foreigners can get a ten-year residence permit upon purchase of real estate worth at least 2 million AED ($ 547 thousand). The program is suitable not only for ready-made housing but also for off-plan projects in Dubai (one or more objects) from approved government developers. To acquire real estate is allowed to use a local bank loan approved by the government. A residence permit gives the right to reside permanently in the UAE, open an account at a local bank, and issue a driver’s license, work and study. Together with the investor status and receive and his family members – spouse and children.
High return on investment.
Despite the fact that prices are rising, the return on investment is still quite high. The highest return is provided by the apartments located on the seafront, close to city infrastructure and transport interchanges. Such objects are in high demand for short-term rentals. Villas and townhouses are chosen by those who rent for the long term. Palm Jumeirah offers properties for sale in Dubai for all tastes.
The three-year visa for the purchase of housing worth $204 thousand also does not lose relevance. Taking into account the cost of housing on the man-made island, the buyer almost automatically becomes a candidate for a resident visa.
Off-plan property for sale in Dubai: the most suitable format for a profitable investment
The greatest interest is a real estate by the sea: every year the number of coastal locations suitable for construction decreases. And in five to ten years there will probably be none at all. Therefore, such investments are potentially profitable today.
Objects under construction offer the greatest opportunities. They have the lowest price and an interest-free instalment plan. To make a reservation in most cases is enough to make 10-15% of the cost. After commissioning, property prices will increase by 10-15% and apartments for sale in Dubai will cost more.
A professional real estate agency in Dubai will help you choose and buy an apartment or villa on Palm Jumeirah Island. The catalog presents current listings from local agencies and developers. The site allows you to choose any type of residential or commercial property on Palm Jumeirah Island or in other communities in Dubai. Check out the regularly updated database of properties at https://www.axcapital.ae/. Specialists are ready to answer all questions related to housing investments in real-time. Start your search for a dream apartment on an island called the eighth wonder of the world!