Rich South Africans are flooding into this overseas city
Dubai in the United Arab Emirates is leading the world in luxury property price growth, with South African investors wanting a piece of the action.
Whilst many luxury markets are slowing, the 2023 Knight Frank Wealth Report showed that property prices have skyrocketed by 225% from the pandemic lows in late 2020, with YoY price growth at nearly 50%.
Samuel Seeff, chairman of the Seeff Property Group, said that Dubai appears to be entering its golden phase, with a huge influx of roughly half a million people into the city, and buyers and investors are flocking to its property market.
With global uncertainties and economic crisis, wealthy buyers have shifted to what they see as stable and growing.
Seeff said that Dubai is a Middle Eastern hub that has enormous business and tourist numbers and a particularly buoyant rental market.
Nombasa Mawela, licensee for Seeff Dubai, said that there are several new developments being created to fill the enormous gap in rental housing, offering strong rental yields for South African investors.
Mawela added that the introduction of the Dubai Golden Visa has proven incredibly popular for those looking to move to the city, as it offers the visa holder and their family to live in the country for up to 10 years, with the ability to stay outside the UAE for more than the usual period of six months in order to keep the residence visa valid.
Being able to open an offshore personal and business bank account is also a huge plus for people who move to Dubai.
Property buyers can also get mortgage finance of up to 75% of the purchase price, with many developers offering attractive alternative payment plans and low-risk financing options – these require low upfront investments with periodic payments.
Read: A look at the stunning R30 million ‘country estate’ up for sale in South Africa
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