Foreign homebuyers aren’t having it easy in Canada at the moment. The Canadian Government just introduced a new law that will limit foreign buyers from purchasing residential properties as investments for the next two years.
But what does that mean for eager foreign property investors? It opens the door to consider other major cities, like Dubai, for their next real estate investment. Let’s look at why Dubai is a good real estate investment destination and what development projects are getting everyone’s attention.
What caused a pause in real estate investing in Canada?
The cause for the law change was a surge in home prices since the start of the pandemic – which many believe was caused by foreigners buying investment homes. And even before the pause, foreign property tax can be up to 20% in some Canadian provinces.
Why invest in Dubai?
The benefits of investing in Dubai are aplenty. A global transport hub for passengers and cargo, the city is constantly evolving with a focus on innovation and technology. Additionally, it prides itself on economic and social resilience due to its strong regulatory framework.
While UAE doesn’t have a provision for permanent residency for foreigners, UAE permanent residency by investment is available, where you get the “UAE Golden visa”. A 10-year renewable investor visa in Dubai is available to individuals purchasing real estate in the UAE worth AED 2 million or more. We’ve got all the details here.
One of the most appealing draw-ins is that Dubai is a ‘no tax’ emirate; but do expect a monthly “housing fee” (also known as the municipality tax), as well as a transfer fee of 4%. All property owners must pay 5% of the average rental value in their area and must pay a fee to the Dubai Land Department upon transfer of the property.
In summary, Dubai is one of the world's cheapest cities for property investment.
Compare the pair
According to CREA, the average home price in Canada is CAD 650,000 (AED 1,700,000). While in major cities like Vancouver and Toronto, the average price hikes up to CAD 1,200,000 (AED 3,300,000).
In comparison, the average home price in Dubai is AED 1,600,000.
In 2022, the rental yield in Toronto amounted to 3.8%. Dubai, on the other hand, whereas in Dubai, the rental yield was up to 9.1%.
Where to buy property in Dubai?
Let’s take a look at some of the newest real estate projects that are turning heads amongst property investors.
DAMAC Lagoons
DAMAC Lagoons is a residential complex spanning 45 million sq. ft. and features eight Mediterranean-inspired clusters that sit around gorgeous man-made lagoons.
Residents can enjoy resort-style amenities like a waterfall, wave machine, floating cinema, waterslides, and waterpark, plus leisure and activity hubs.
The housing options currently include 4-5 bedroom townhouses and 5-6 bedroom villas, with a starting price of AED 2,100,000.
Binghatti Nova
A premium residential project built in the sustainable JVC (Jumeirah Village Circle) area.
Binghatti Nova is classically styled with marble interior patterns and designer furniture. You’ll be able to enjoy cool winter nights on your balcony, as it is available in every apartment.
Amenities are aplenty with this project. You can make use of the fully equipped gym, a dedicated yoga area, and a floodlit pool. The complex also boasts a medical center with state-of-the-art equipment, as well as a spa center.
Apartment sizing starts from 613 sq. ft. and the starting price is AED 590,000.
DAMAC Camelia
DAMAC Camelia villas are part of the DAMAC Hills 2 residential complex. You’ll find a selection of 3-bedroom townhouses with thoughtfully-designed layouts, state-of-the-art finishes, and a private garden. The community covers nearly all of the basics with retail shops, an outdoor gym, a wave pool, a lazy river, Zen gardens, sports fields, and even an outdoor cinema.
The starting price for villas at DAMAC Camelia is AED 1,320,000.
Arada Jouri Hills
The latest addition to the Jumeirah Golf Estates mega community, Arada Jouri Hills features 294 luxury homes that range from 3-bedroom townhouses to 6-bedroom mansions.
Each home boasts natural light from floor-to-ceiling windows, skylights and double-height spaces, plus is equipped with smart technology for added security and convenience.
Swimming pools are standard for detached homes and two internationally-acclaimed championship golf courses are merely a stone’s throw away.
The starting price for homes in Jouri Hills is AED 4,100,000.
Ready to invest in Dubai?
With so many new projects popping up all over Dubai, it’s no wonder that everyone wants a piece of land in one of the fastest-growing cities in the world.
If you’re ready to turn your Canadian Dollars into a UAE investment property, our expert team can help turn your foreign homebuyer dream into reality. Call us at +971 (4) 581 3616"