British investors are leading the charge in Dubai’s real estate market boom as they flock to the UAE in record numbers to buy properties and settle down, lured by tax benefits, high rental yields, and luxury lifestyle, industry insiders told Arabian Business.
Data from leading Dubai property agencies shows an unprecedented surge in transactions from UK nationals over the past year, outpacing traditionally dominant buyer groups like Indians and Russians. This surge underscores the UAE’s rising appeal as an investment hub for British buyers amid economic uncertainties at home.
Influx of British property investors
According to Paul Kelly, Operations Director at Allsopp & Allsopp Group, transactions from UK customers soared 43 percent in Q1 2024 compared to the same period last year, and 27 percent over the last 12 months.
“We can attribute this to an influx of people from the UK, as well as an increased appetite from local UK tenants who are entering the market,” Kelly said, citing factors like Brexit, cost-of-living pressures, and rising taxes that have made Dubai an attractive alternative for many.
At Metropolitan Homes, British nationals accounted for a staggering 21.2 percent market share in 2023, surpassing traditionally dominant groups like Indians (11.9 percent) and Russians (3.7 percent), revealed Alina Adamco, Head of Sales. The agency has witnessed a significant increase in British clients across three key groups – young professionals, retirees, and entrepreneurs.
“Dubai’s strategic location, modern infrastructure, tax advantages, cosmopolitan culture, and strong investment returns are major drawcards,” Adamco said.
Tax-free profits, high rental yields major lures
A key driver of the Dubai real estate boom has been the UAE’s tax-friendly policies, which enable investors to maximise returns compared to their home markets.
“Unlike the UK where property investments come with substantial tax liabilities like income tax on rentals and capital gains tax, Dubai offers a tax-free environment – a huge incentive,” said Lynnette Sacchetto, founder of Dubai-based DXB Advisors.
Dubai’s ability to generate higher rental yields than major UK cities is another major pull factor. With central London and other urban areas offering lower and sometimes volatile returns, the emirate stands out as a more lucrative option for income-minded investors, according to industry insiders.
“Dubai’s real estate market is known for its high rental yields compared to major cities in the UK,” Sacchetto said.
Despite fluctuations and economic downturn across the world, Dubai’s economy continues to show robust growth driven by diversification which has propped up sectors like tourism, trade, finance, and technology – “a stark contrast with the UK’s economic uncertainties fueled by Brexit,” she added.
As a result, the emirate has further cemented its status as a safe investment haven for UK nationals concerned about their home market’s performance. This, coupled with low crime rates, strong legal frameworks, a pro-business government, and a luxury lifestyle, has made it a secure environment for foreign investors and expats alike who are looking to settle down longer-term.
“From high-end shopping malls, restaurants, world-class schools, and hospitals, the quality of life in Dubai is a huge draw for those looking to invest in properties that also serve as personal retreats,” Sacchetto said.
British retirees choose Dubai
Investing in Dubai real estate also unlocks the potential for long-term residency through schemes like the coveted Golden Visa – a major incentive for buyers considering relocation.
“This is particularly appealing to those who wish to spend part of the year in the UAE or are considering relocating,” Sacchetto noted.
British retirees “seeking a warm climate [and] luxurious lifestyle” are drawn to Dubai’s five-year retirement visa, revealed Adamco. She added that there has also been a surge in young professionals and entrepreneurs investing in property as they now view the UAE as a “long-term base” and look to capitalise on the country’s strategic location for business “as a gateway between East and West.”
What are they buying? Luxury property still in vogue
While British buyers’ preferences are gradually shifting towards more affordable apartments in prime areas like Dubai Marina and Downtown Dubai, luxury villas and properties remain a major focus.
According to Aishwarya Lalchandani, Senior Market Research Analyst at Better Homes, around 54 percent of total sales by value for British investors in Q1 2024 involved villas and townhouses, though this marked a decrease from over 80 percent a year ago.
“Conversely, the proportion of apartments rose from 18 percent in Q1 2023 to 45 percent in 2024 – indicating their evolving tastes,” Lalchandani said.
According to experts, some of the most coveted locations for British property buyers include Dubai Marina, Palm Jumeirah, Downtown Dubai, and upscale villa communities like Emirates Hills, Arabian Ranches, and Jumeirah Golf Estates.
Metropolitan Homes’ Adamco cited Dubai Marina, Palm Jumeirah’s luxury beachfront residences, and Emirates Hills’ elite villas as major British buyer magnets. Better Homes data showed significant transactions from UK nationals in areas like Dubai Marina, Jumeirah Village Circle, and Dubailand.
A long-term bet?
Industry experts suggest the surge in British interest represents a long-term trend rather than a fleeting phenomenon as Dubai strengthens its reputation as an investment safe haven.
“Dubai’s reputation as a business-friendly emirate for global investors further reinforces its appeal,” Adamco said, adding how established British communities, cultural events, and international schools are facilitating smoother integration for new expatriates.
With the UAE’s tax-friendly policies, high rental yields, and booming economy offering stark advantages over uncertain post-Brexit conditions at home, British nationals are voting with their wallets.
From young professionals to retirees and entrepreneurs, they are flocking to stake their claim in Dubai’s real estate market. While luxury properties remain coveted, evolving buyer preferences signal a growing appetite for affordable options too. Ultimately, this trend reflects Dubai’s resilience and ability to attract long-term foreign investment and residency.
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