Buying real estate is a highly beneficial investment, encouraging investors from around the world to buy various types of properties, commercial and residential, ready-to-move and off-plan, in order to diversify their portfolio, gain rental income, benefit from property appreciation or business activities, receive passive income, and protect their finances and assets against inflation.
That said, investors are always looking for the most promising real estate investment opportunities in different international locations, such as Dubai and Paris, so they find the ones that are most suitable for their needs, wants, goals, investment strategy, and financing method.
So, which market suits your goals best? Dubai or Paris? Continue reading this article for a comprehensive comparison of Paris vs. Dubai’s real estate markets and the advantages of each.
Real Estate Investment Opportunities
It must be noted in our comparison of Paris’s vs. Dubai’s real estate landscapes that both markets offer highly sought-after investment opportunities that are suitable for all types of investment strategies and purposes.
That said, Dubai’s real estate investment opportunities are in high demand thanks to the following factors:
● High Rental Yields
Dubai offers high rental yields, enabling investors to gain a high rental income compared to the property’s purchase price. In other words, the higher the yields, the higher the returns on investments. Dubai’s rental yields are among the highest worldwide, with an average of 7-8%, making Dubai’s property market an extremely appealing destination for investors.
● Tax Benefits
Dubai’s property market is incredibly investment-friendly, especially considering the various tax policies and incentives implemented by the government. Dubai does not impose any personal income tax, capital gains tax, or property tax. As a result, investors are able to maximise their returns on investment (ROIs) and have higher profits.
● Foreign Ownership
When looking at investment opportunities in Paris vs. Dubai’s real estate markets, it is important to keep in mind that Dubai has established what are known as freehold zones. These specified areas allow non-UAE nationals and foreigners to own property in Dubai without the intermediacy of a local sponsor. Some of these areas are Al Furjan, Palm Jumeirah, and Meydan City.
On the other hand, the real estate investment opportunities in Paris are unique for the following factors:
● Historical Appreciation
While Dubai’s relatively recent property market is extremely stable, so is the market in Paris, which has been proven over a long period of time. Parisian real estate history has shown consistently how property value appreciates over time, creating an incredibly stable environment for investments, especially in areas like the 6th, 7th, and 16th arrondissements.
It must be noted that Paris’ real estate market is less prone to fluctuations in property value due to the high demand and limited supply, especially in central and historic areas.
● Stable and Reliable Economy
The French economy is diversified thanks to flourishing sectors of agriculture, manufacturing, and tourism. Since the economy is not dependent on one field, it becomes resilient to financial fluctuations and crises. This is of great significance for investors because a thriving economy promises predictable returns, reduces risks, and makes financing options such as mortgages more appealing and convenient for investors.
● Cultural Appeal
Even though this factor is not concerned with the logistics of investments or ROIs, it is of high value for many international investors. A lot of individuals are looking for properties in Paris mainly due to its rich culture, history, architecture, and arts scene. Those who prioritise such appeal and lifestyle find Paris an ideal investment destination.
Property Types and Prices
Property types and prices are an essential aspect to explore when comparing the options in Paris vs. Dubai’s real estate markets. Dubai is home to a wide range of property types, including residential properties like studios, 1-2 bedroom apartments, villas, townhouses, and penthouses. As for the commercial properties, they include retail stores, offices, warehouses, and more.
Whether off-plan or complete, there is a property for each investor planning to buy or rent a unit in Dubai. Thanks to the impressive variety of Dubai’s property market, investors can look for options in budget-friendly areas or search luxurious destinations for high-end options. No matter the budget, Dubai has endless options for all investors.
On the other hand, Paris has various types of commercial properties for businesses as well as residential options like studios, apartments, lofts, Haussmannian apartments, and mansions. It is worth mentioning that the housing stock in Paris consists mostly of apartments, with only 17% of homes being houses. So, if your dream home is an apartment, Paris has plenty of options, but if you prefer a house or an apartment with a beachfront, Dubai is the right place for you.
Buying Property in Dubai
Are you looking for a new home in Dubai? Azizi Developments is a leading real estate developer in Dubai that has an impressive residential portfolio consisting of the most elegant, modern, and convenient residential units. They provide residents with many world-class amenities and services, in addition to their convenient locations, situated close to healthcare facilities, schools, entertainment outlets, and key areas in the city. Discover Azizi Developments now for more details.