Unlocking the UAE’s Property Market: Dubai, Abu Dhabi and Ras Al Khaimah

The United Arab Emirates (UAE) has positioned itself as a leading global real estate market, offering great opportunities for capital growth and rental income. Known for its favourable tax conditions, internationally recognised educational opportunities and government policies that welcome foreign investors, the UAE has witnessed a remarkable surge in property values. Reports indicate that the UAE’s overall residential real estate market is expected to experience steady growth, with an anticipated compound annual growth rate (CAGR) of 8% from 2022 to 2027.

The country’s strategic location at the crossroads of Europe, Asia and Africa further enhances its appeal as a business hub, providing exceptional connectivity and access to international markets. The UAE’s world-class infrastructure, supported by a thriving economy in finance, tourism and technology, sets it apart from other global cities.

Property values surge across key UAE markets

In Q1 of 2024, property prices in the UAE observed significant growth across key locations:
Apartment prices in Dubai increased by 18% and villa prices surged by 22%. The average citywide rental returns also saw an uptick, with a 7% increment. Similarly, Yas Island in Abu Dhabi demonstrated growing market demand, with apartment prices climbing by 2.77%. Meanwhile, apartment prices rose by 18.5% in Ras Al Khaimah, accompanied by rental cost increments of 7-11%.

The Golden Visa Program

The UAE government has implemented several initiatives to attract and retain global investors, with the Golden Visa program being a standout. Introduced in 2019, the Golden Visa grants a 10-year residency to investors who spend at least AED 2 million (731,485 Singapore Dollars) on real estate.

This visa program is part of a broader strategy to create a stable and welcoming environment for foreign investors. It further provides them and their families with long-term residency and the ability to sponsor dependents. Compared to other major cities, property prices in the United Arab Emirates are still relatively low, making it an appealing option for Singapore investors looking for high-quality properties at competitive prices.

For Singapore investors, the UAE presents an exceptional opportunity for capital growth and rental income. It is characterised by attractive rental yields averaging around 7%, with some areas achieving up to 10%.

Why invest in UAE real estate?

• Tax-free environment: The UAE’s tax-free framework, with no capital gains or residential property taxes, makes it a tax-efficient investment destination.
• Government support: Proactive government initiatives offer long-term residency benefits, including the Golden Visa program.
• Socio-economic stability: A stable political environment, low crime rates and strong economic resilience contribute to a secure investment climate.
• Strategic location: The UAE’s position at the crossroads of major continents offers exceptional global market access, making it an ideal base for international business.
• High rental yields and capital appreciation: In prime areas, average rental yields are around 7% and there is potential for up to 10%, combined with substantial capital appreciation, which promises lucrative returns.
• High quality of life: Residents benefit from world-class infrastructure, amenities and vibrant culture, making the UAE an excellent place to work and live.
• Competitive pricing: Compared to other global cities, the UAE offers relatively affordable property prices while providing excellent infrastructure.
• Stable currency: The Emirati Dirhams’ stability provides buyers with a secure exchange rate environment.
• World-class healthcare: The UAE boasts the best healthcare facilities globally, offering advanced medical technologies and highly skilled professionals.
• Diverse and vibrant cultural environment: The UAE’s cosmopolitan environment, with a mix of cultures and a high quality of life, attracts investors seeking financial returns and lifestyle benefits.
• Strong legal framework and investor protections: The UAE has developed a transparent and robust legal framework for property transactions, including protections for foreign investors.

Key locations and properties for investment

The UAE’s real estate market is diverse, with key investment opportunities in Dubai, Abu Dhabi and Ras Al-Khaimah. For the upcoming event in Singapore, three prominent developments will be highlighted:

Sama Yas, Abu Dhabi

Sama Yas is an upcoming, luxurious residential project by the renowned Aldar Properties on Yas Island, one of Abu Dhabi’s iconic attractions. Situated near Yas Marina Circuit, Ferrari World, Yas Waterworld and Yas Mall, Sama Yas offers residents the utmost luxury and convenience in one of Abu Dhabi’s most popular areas for living and investment. Abu Dhabi International Airport is a 15-minute drive from here.

Completion date: 2027

Residences: This development includes a variety of residences—one—to three-bedroom apartments, two- to three-bedroom duplexes and two- to three-bedroom garden apartments. Commuters will enjoy easy access to major road links, a quick, short drive from the Abu Dhabi city centre and Abu Dhabi International Airport.

Amenities:

• Private park: Ample green space ideal for relaxation and recreation.
• Concierge services: Round-the-clock assistance to cater to residents’ needs.
• 24-hour room service: Includes meal orders from the exclusive IZU restaurant.
• Retail areas: Convenient shopping options within the community.
• Boutique spa: An on-site facility offering luxurious treatments.
• Expansive green surroundings: Promotes a balanced and serene lifestyle.

Nikki Beach & Rosso Bay Residences, Ras Al-Khaimah

Situated on Al Marjan Island, Nikki Beach & Rosso Bay Residences is ideal for an exclusive coastal lifestyle. Positioned between the Rixos Bab Al Bahr and DoubleTree by Hilton Resort & Spa, this development will offer high-end apartments ranging from one to five bedrooms, featuring stunning natural landscapes and direct beach access. The area surrounding Nikki Beach & Rosso Bay Residences is poised to benefit from increasing tourism, boosted by the introduction of upcoming high-end hotels and resorts. Among the most anticipated is the Wynn Resorts casino project, the UAE’s first, scheduled to open in 2027.

Completion date: 2028
Residences: This project includes one- to five-bedroom apartments, Sky Terraces and Sky Villas. Each residence is designed to maximise comfort and luxury.

Amenities:

• Airport proximity: Dubai International Airport is an hour’s drive from this development
• Beach access: Direct access to a private beach.
• Health club: Includes state-of-the-art fitness facilities and a yoga studio.
• Infinity edge leisure pool: Offers stunning views and a luxurious swimming experience.
• Serviced club lounge: A dedicated area for relaxation and socialising.
• Kids play area: Outdoor spaces designed for children’s activities.
• Branded residences: High-quality finishes and furnishings.
• Additional services: Grocery delivery, housekeeping and pet care.

Verdes by Haven, Dubai

Aldar Properties’ Verdes by Haven is a wellness-centred residential community in Dubailand, Dubai. This project offers residents eco-conscious apartments, a distinctive treehouse community lounge, yoga studios and concierge services. Its location near Emirates Road and Al Ain—Dubai Road makes this development an enticing investment option for overseas investors, as it’s designed to foster a convenient lifestyle with access to Dubai’s key areas. The Dubai International Airport is only a 10-minute drive from Verdes by Haven.

Residences: 1,047 apartments with configurations including one-to-three-bedroom units and two-bedroom duplexes. All residences will feature contemporary elements, including walk-in closets and laundry rooms.

Amenities:

• Wellness-Focused Facilities: Co-working spaces, a central park, yoga studios and meditation pavilions.
• Community Features: Multi-sports courts, a clinic and a community centre.
• Recreational Areas: A swimming pool, children’s pool, running and cycling tracks and shaded play areas.
• Additional Services: Cooking classes, free yoga and pilates, spa facilities, travel concierge, car rental bookings and home maintenance.

UAE Property Showcase in Singapore

If you are a Singapore property investor and would like to enter the UAE property market and expand your portfolio, we invite you to Benham and Reeves Singapore’s upcoming UAE Property Showcase. This event, scheduled for 7 & 8 September 2024 at The Great Room, Raffles Hotel Arcade, Singapore, will offer investors comprehensive insights into the UAE’s real estate market.

The showcase will feature luxury apartments in Yas Islands, Ras Al Khaimah and Dubai, starting at SGD 465,000. Attendees can also engage with experienced real estate agents for one-on-one, tailored investment advice.

Conclusion

For Singapore investors, the UAE’s real estate market offers an ideal combination of high returns, tax benefits and a secure economic environment. With luxurious Aldar Properties in excellent locations, now is the perfect time to diversify your investment portfolio and capitalise on the UAE’s thriving real estate market.

Benham and Reeves has been at the forefront of connecting Singapore investors with global opportunities. It offers comprehensive services, from pre-purchase advice to complete property management.

Get in touch with us today to register and get access to the event details.