A Golden Opportunity: Why Investing in a Dubai Property Beats the Netherlands

Where Asia, Europe, and Africa collide, Dubai has evolved from a desert into a glitzy investment destination. Ultra business-friendly with low taxes and regulations, it’s not hard to see what attracts investors and entrepreneurs alike. Read on to find out why owning property in Dubai is worth considering.

1. A Profitable Substitute to Dutch Property

The property market in the Netherlands has become more restrictive towards landlords, and regulations such as the WOZ system (Wet Waardering Onroerende Zaken) and point-based rent controls are now in place. Under WOZ, properties valued at 623,000€ are disallowed from renting for the first four years, limiting the return potential. Legislation in the Netherlands leans sharply in favor of renters.

Dubai provides a landlord-oriented environment with fewer restrictions. Expats can invest safely in the knowledge that they have more control, and those put off by Dutch regulations welcome this freedom.

2. Tax-Free Investment

One of Dubai’s strongest attractions is the absence of taxation on real estate. While property and capital gain taxes in countries like the Netherlands and others take a huge bite out of profits, investors can keep 100% of their rental returns and resale profit in Dubai. This makes Dubai an excellent location for expats who want to reap maximum profits. Dubai has many favorable attributes to the property investor, for instance;

• No property taxes
• No capital gains tax
• 100% repatriation of foreign investors’ profits

This tax-free nature guarantees higher net returns than investing in real estate in Europe and other regions worldwide, such as Singapore or New York.

3. High Rental Yields & ROI

Dubai has consistently boasted some of the world’s highest rental yields, ranging between 6-9%, much higher than in cities such as Amsterdam (3-4%) or London (2-4%). Highly sought-after locations such as Downtown Dubai, Dubai Marina, and Jumeirah Village Circle are characterized by high demand and stable rental incomes.

Its thriving tourism industry drives short-term rental demand through platforms like Airbnb and Agoda. Millions of tourists visit each year, and with new mega-projects on the horizon, including the world’s largest casino and a brand new airport set to become the biggest in the world, rental property demand is all set to increase.

4. “I cannot afford to buy”

This is a valid concern, but Dubai has flexible payment plans—even for first-time buyers. Most property developers require investors to put down a 20-25% down payment, and from there, you’d pay, for example, 1-2% a month or 5% every six months. The point is that it’s affordable and allows expats and Dutch nationals to enter the housing market without selling other properties or sacrificing equity elsewhere.

But if you’re worried about debt in a faraway land, you can sell after paying 60% of the property price, generating healthy returns even before full ownership. It’s certainly worth looking into.

5. Residency Through Property Ownership

Is it easy to move from the Netherlands to Dubai? The answer is yes. Buying property in Dubai can give you a resident VISA. This handy government initiative, just recently launched, is called the Golden Visa program and allows buyers (and their families) the right to live in Dubai for 10 years. And all with a minimum property purchase of AED 500,000 (about €125,000), giving some security to those who might want to divide their time between the Netherlands and Dubai or perhaps see themselves moving there permanently. If you do decide to move, it isn’t super complicated.

6. A Prosperous Economy

With a stable and fast-growing economy, the UAE’s prosperity largely rests on its geography, which renders it an epicenter for international trade. The focus on innovation, a strong business environment, and world-class infrastructure has increased property prices.

Luxurious developments such as those filling up Palm Jumeirah are experiencing unprecedented demand. These trends position Dubai as an excellent option for long-term investment growth.

7. Lifestyle Appeal

Compared to New York or London, Dubai offers the ‘luxury lifestyle’ but on a more affordable budget. You don’t need to be a millionaire to enjoy a waterfront residence, world-class shopping malls, and the best restaurants and cultural attractions. The price per square meter is also $300-$600 compared to around $1,500-$2,000 in New York.

There is a warm climate all year round. We’re sure you’ll agree that Dubai offers a rather tempting alternative for those used to rain and drizzle. Dubai is also super modern and a lot more liberal than its neighbors. So there’s that to think about, too.

8. Expat Community

A large expat population from around the world is settled in Dubai—many highly skilled and well-paid. The city’s decision to double its population within the next two decades means a continuous demand for quality housing. This will lead to new locations popping up with more affordable prices than downtown, the marina, etc.

The Dubai expat community provides opportunities to network and a stable pool of renters for rental apartments.

9. Government-Supported Security Measures

Dubai’s real estate market is regulated to promote transparency and openness. This ensures the protection of investor interests, which are key to Dubai’s future prosperity. By law, developers must achieve certain building stages before they can legally ask for payment from clients. So, for instance, 40% built means no more than 40% of the property cost is payable.

These programs ensure that errors are corrected promptly, with deadlines often given. Plenty of firms guarantee the full cost of rectifying faults. There are hundreds of developers vying for business, so it’s in their interest to do so to stay competitive. Rigorous inspection protocols ensure compliance with building codes. This continues to give investors confidence when purchasing off-plan or ready-to-move-in properties.

Why Now Is The Ideal Time to Invest in Dubai Property

For expats in the Netherlands seeking the highest returns, minimal regulation, and long-term growth possibilities, property in Dubai offers an opportunity that is too enticing to turn down. Dubai’s zero-tax culture, high rental yield, flexible payment options, and lifestyle attraction make it a great investment property.

Whether seeking to diversify your assets or achieve financial security through passive income streams, Dubai presents unparalleled opportunities that are difficult to find anywhere else—and certainly not when compared with increasingly restrictive European markets such as those in the Netherlands. Dutch Real Estate Company works with the top five biggest developers in Dubai and tailors their services to your circumstances.