The Dubai real estate market has attracted buyers from around the world, but Americans are more eager than ever to add Dubai property to their portfolio.
Americans are investing globally right now, with Mexico, Spain and Dubai being the hot spots.
Americans are showing liking for the Spanish town of Marbella, and this region is becoming popular among American investors. Over the last year, the property prices in Marbella have risen by 10 percent and are now averaging around $ 470 per square foot. The city offers luxury, a favourable climate and strong infrastructure, making it a prime location for second homes. This city ranks as the 16 th most expensive city globally for luxury properties, even surpassing Madrid and Dubai. Exclusive neighborhoods like Nagüeles-Milla de Oro and Nueva Andalucia make it an ideal place for Americans to invest here.
Mexico, with its proximity to stunning US beaches and affordable real estate, remains a top choice for an American buyer. In 2023 alone, around 17,000 properties were purchased by Americans alone. Popular regions like Rivera Maya and Puerto Vallarta offer not only a lower cost of living but also, a rich cultural experience and ease of travel.
Dubai is a city that is ever-evolving with new real estate projects constantly coming up catering to the needs of the city’s growing population. The city is becoming a top investment destination for Americans, who are now among the top ten investors by nationality.
Dubai offers very affordable prices per sq. foot. Averaging around $ 450 USD, with high rental yields and a favourable tax environment. In Dubai, there are no property taxes, capital gain taxes, or inheritance taxes, making it a highly attractive market. Besides this, the city’s strong capital adds to this city’s strong capital appreciation potential and world-class infrastructure, and it’s clear Dubai is on every property-savvy investor’s radar.
Industry perspective on American Investment in Dubai:
Veterans say it is Dubai’s affordability factor and favourable tax structure that is attracting Americans to invest in Dubai.
“There are many reasons why Americans are showing interest in Dubai properties. First, affordability and price per square foot in Dubai are significantly lower in prime locations throughout the United States, such as New York and California, “says Ghada “GG” Benitez, a certified international property specialist and licensed realtor with GG Benitez International.
She adds, “The favourable tax structure of Dubai makes purchasing property in Dubai extremely attractive to Americans, such as the lack of property taxes, which eats into the profit margins for those who are buying property in the United States. Thirdly, the capital appreciation is much higher in Dubai than most of the markets in the United States.”
Salman bin Ali, CEO of CBA Real Estate and DXBA Technology, echoed similar sentiments when he says, “Americans are increasingly investing in Dubai real estate due to its strategic location, tax-free income, and strong return on investment. Dubai’s world-class infrastructure, booming tourism, and visionary projects create an appealing environment for long-term capital growth. Furthermore, the city’s safe, cosmopolitan lifestyle, combined with relatively affordable luxury properties compared to other global cities, make it an attractive option for investors seeking diversification in a stable and rapidly growing market.”
In the view of Thomas Fawcett, Co-founder, The Property, Americans are turning to Dubai due to global economic uncertainties and instability. He adds, “Dubai’s robust legal framework and strong property rights also provide confidence for investors seeking to diversify and protect their assets. Additionally, the region’s diplomatic neutrality and growing global influence make it an attractive choice for Americans looking for long-term stability and growth.”
So, whether it’s in the luxury in Marbella, affordability in Mexico, or in the attractive market in Dubai, Americans are diversifying their real estate portfolios globally in 2024.
