known for its developed economy, long roads and imposing skyscrapers, is no longer just a luxury tourist destination and has become a reality in the financial planning of many Brazilians. In recent years, the city has started to attract an increasing number of foreigners interested in investing internationally. If before they were seen as the great paradise for this type of application, today the eyes turn to the refuge in the United Arab Emirates.
“Since the change of government in the USA, we have seen an increase in demand for Dubai and this only tends to grow. Many investors who previously focused on, or started to look at, the Arab destination as a clear alternative. Having been in the market for years, I would venture to say that I have already noticed a growth of more than 30% in demand”, declares Weverton Araújo, founder of ROWE Realty, a company specializing in the sector.
According to the expert, the advantages are considerable and one of them is based on financial issues. “While cities like New York and London sell square meter prices above USD 6,000, in Dubai the average is USD 3,900 and this demonstrates its great potential for expansion. Not to mention the modernity, structure and innovation employed and praised by the media, all the time”, points out the executive.
Following the line that Dubai is the new “favorite of Brazilians”, the consultant listed 5 reasons why businessmen should think about opting for real estate investments in the region and with their eyes almost closed.
1. Agile processes and tax exemption
According to Weverton Araújo, Dubai’s competitiveness in relation to the USA has increased significantly due to the way of doing business in the region. “Dubai is today a global investment hub, with agile processes, no taxes on rent and average profitability between 7% and 10% per year. This makes it seen as a modern, profitable and safe alternative compared to traditional markets such as the USA”, he comments.
2. Continuous appreciation of the investment
According to the expert, bureaucracy has no place in the United Arab Emirates. There, the government is guided by planning and innovation, which should make the city a global reference in different sectors in a few years. “Dubai is a visionary city, instead of being tied down by bureaucracy, it launches projects that anticipate trends, such as Dubai World Central (DWC), which is being built to operate with a capacity of up to 220 million passengers per year. Once ready, it will become the largest airport in the world.”
3. Location, location and location
Dubai is planned in large urban masterplans, which means that each region is thought of as its own organism, with infrastructure, mobility and services. Weverton confirms that being in a strategic location can multiply the property’s potential. “Initiatives like the DWC, added to the Dubai 2040 plan, show that here the investor does not just buy a property, but participates in a planned growth ecosystem with global reach, something that is difficult to find in other international markets.”
4. Security and modernity
In addition to political issues in the USA, financial instability in Brazil has also increased the demand for real estate investments abroad. “Dubai has become popular with Brazilians because it represents exactly what they are looking for today: security, modernity and a real opportunity for growth. In practice, this means exchanging Brazilian instability for a predictable environment, with serious governance and visionary projects. In addition, there are cultural and lifestyle factors: during the winter, Dubai has a climate very similar to Brazil, which makes adaptation easy. Added to this, the receptivity towards foreigners that is already growing here creates a sensation of familiarity. Therefore, more and more families have chosen the city as their final destination”, argues Weverton.
5. Win-win relationship
Not every real estate investment in Dubai has the same purpose. There are those who seek to generate passive income with rent and others aim for long-term appreciation. Despite the win-win relationship, the expert advises: “Define your objective before purchasing and keep in mind that Dubai is a Muslim city, but very open and cosmopolitan. Respecting customs is simple: not consuming alcohol in public, dressing modestly in mosques, avoiding excessive displays of affection in public places and always greeting with cordiality. In everyday life, this combination of tradition and modernity makes the city welcoming to foreigners, without major problems and with security, business possibilities and a lot of visibility”, he concludes.
