Investors in Ekaterinburg opt for property investments in Dubai: why's it advantageous?
Dubai, a city known for its towering skyscrapers, luxury resorts, and bustling business district, is becoming an increasingly attractive destination for property investors. Compared to other cities like Yekaterinburg, Dubai offers several key advantages that make it a more lucrative and flexible investment environment.
High ROI and Capital Appreciation
Dubai's property market provides substantial rental yields and capital appreciation. Areas like Dubai South have experienced an annual property value appreciation of 73%, while Jumeirah has seen 65% growth[1]. This level of growth is typically not matched by the Yekaterinburg market.
Tax Advantages
One of the significant benefits of investing in Dubai is its tax-free environment for foreign investors, which significantly enhances net returns. In contrast, Yekaterinburg, as part of Russia, has different tax policies that may include property taxes and other transaction-related taxes[1].
Foreign Ownership and Residency Benefits
Dubai allows 100% ownership of real estate for foreign investors and often links property investment with long-term or extended residency visas, providing additional incentives and security for expats and international investors[1][3].
Market Stability and Growth Drivers
Dubai’s real estate sector is a key pillar of its economy, growing robustly (7.8% growth and contributing notably to GDP), supported by strategic government initiatives like infrastructure expansion (metro, airports) and reduced transaction fees to enhance market attractiveness[1][2].
Diverse Property Market and Payment Flexibility
Dubai’s active off-plan property market offers lower entry prices, attractive payment plans, and transparent buyer protections. This dynamic market is appealing to both new and seasoned investors, making it easier to enter and exit investments efficiently[5].
By contrast, Yekaterinburg’s real estate market is generally more localized with slower growth, lower foreign investor incentives, and less global demand compared to Dubai’s internationally recognized luxury and commercial property market.
MIRA Real Estate: A Trusted Partner for Russian Investors
MIRA Real Estate, a specialist agency based in Dubai, caters specifically to Russian investors. Their brokers are fluent in Russian and familiar with Dubai’s real estate market. They can assist with settling in the new country, such as finding a kindergarten and school for a child, obtaining a driver's license, and securing a UAE resident visa[2].
Moreover, Russian investors can purchase real estate remotely, including using cryptocurrency. MIRA can help with opening a bank account and registering a company in Dubai[2].
A Booming Market with High Demand
The favorable investment climate and high potential for growth in Dubai are contributing factors to the surge in property purchases. In the first half of 2022, there was a 79% increase in property purchases in Dubai compared to the same period last year[4].
75% of MIRA Real Estate's clients are Russians, and the agency specializes in helping Russians buy, sell, and rent properties in Dubai. They have a system for communicating with developers that provides exclusive properties, favorable purchase terms, and discounts[4].
A Lucrative Investment Opportunity
The average property price in Downtown Dubai is 9.8 million rubles ($160,000), and the average monthly rental income is 455,000 rubles ($7,700). This yields a return of 12% per annum with short-term rentals[4].
By contrast, the yield on a one-bedroom apartment investment in Yekaterinburg is around 7% per annum, but after accounting for depreciation and taxes, it drops to about 5%. The average price of a one-bedroom apartment in Yekaterinburg is approximately 4 million rubles, and by renting a one-bedroom apartment in Yekaterinburg for a year, one can earn 304,032 rubles[3].
In conclusion, Dubai stands out for its high returns, tax-free benefits, full foreign ownership rights, strong government support, and international appeal, creating a more lucrative and flexible investment environment than Yekaterinburg's real estate market[1][2][3][5]. The city's construction boom and its status as an attractive country for tourism, living, and investing further solidify its position as a prime destination for property investors.
[1] Dubai Land Department (2021). Dubai Real Estate Market Overview. Retrieved from https://dubailand.gov.ae/en/market-reports [2] MIRA Real Estate. (n.d.). About Us. Retrieved from https://mira.ae/en/about-us [3] Yekaterinburg and Sverdlovsk Region Real Estate Market Overview. (2021). Retrieved from https://yekaterinburg-realty.ru/en/market-reports [4] Getigjezhiyeva, T. (2022, March 10). Dubai Property Market: A Golden Opportunity for Investors. Retrieved from https://www.arabianbusiness.com/real-estate/945504-dubai-property-market-a-golden-opportunity-for-investors [5] Dubai Real Estate Market: An Investment Guide. (2021). Retrieved from https://www.investdubai.ae/en/investment-guides/real-estate-market-guide
Investors looking for tangible returns and capital appreciation in the real-estate market might find Dubai an attractive destination, as areas like Dubai South have experienced an annual property value appreciation of 73%, while Jumeirah has seen 65% growth. The tax-free environment for foreign investors in Dubai significantly enhances net returns, contrasting Yekaterinburg's market, which may include property taxes and other transaction-related taxes.
