Dubai, Miami, Florida, Spain, Mexico - investments in luxury real estate, with high yield

The real estate market tends more and more to become a global one, and the borders are opening one by one, even if we are not talking about those inside Europe. Dubai, Miami or Florida are areas where Romanians invest, buying real estate properties to resell them at higher prices than the purchase prices.

The real estate sector in the United Arab Emirates is constantly expanding, and investors can find a wide range of properties available there, from small apartments to luxurious villas and exclusive residential projects. All benefit from multiple facilities.

Mircea Brânzei, Owner & Founder of ImobiliareDubai.ro, points out: "Investments in real estate in Dubai have been extremely profitable in recent years, and the value of a property can increase by 30% to 100% over time. Romanians' interest in real estate purchases in Dubai is growing, considering the financial advantages for investors, the fact that there are no taxes on profit, property, rental or resale, flexible payment plans, prices starting from 150,000 euros, the fact that the investment it is protected by the government, payment of installments and after receiving the keys, high rental yields and the possibility of owning properties for life. Smart investments in Dubai can offer a return of over 70% per annum - something unheard of in the world. Consequently, it is forecast that the demand for properties will continue to grow in 2023, and property prices could appreciate by at least 10-15%".

Nicoleta Topliceanu, manager at Direct Real Estate - Dubai Luxury Real Estate -, claims that, recently, prices have increased a lot in Dubai - probably also in the context of the war -, demand is very high, and developers are investing a lot in the area : "There is a lot of construction in Dubai and all the apartments have swimming pools, football pitches, fitness, bars, restaurants, etc. As far as Romanians with an appetite for investment are concerned, the biggest demand for real estate in Dubai comes from Bucharest. People want to invest in a safe city, and there the property will never devalue, because there will always be demand, especially since the population is constantly growing in Dubai. We have on offer from studios - with prices starting from 107,000 euros -, to various types of apartments, houses, etc.".

Some of the buyers intend to move there, but most of them buy properties in Dubai to resell them, Nicoleta Topliceanu told us, adding that there is no crisis in Dubai.

After Dubai, Andreea Popa, founder of Emax Real Estate, opens the Florida market, alongside the most powerful real estate developers in the United States, being present at the National Real Estate Fair (TNI) in September and with a series of premium and luxury residential complexes from Miami.

Andreea Popa believes: "It is proven that the real estate market is the least volatile and has a natural tendency to recover, regardless of the economic context, having of course also a price appreciation, with the passing of the years. During the three years of business, we managed to develop our portfolio in Dubai and expand in the United States of America. Miami is one of the most popular vacation destinations on the American continent, and here prices for new real estate start at $540,000 for a studio that is located near the ocean, has multiple leisure facilities, and offers the possibility of obtaining a temporary residence permit and reach up to a maximum of 13 million dollars for luxury apartments signed by famous designers".

In Dubai, Emax Real Estate offers start from 140,000 euros for a studio, with a starting area of 40 square meters, Andreea Popa told us, adding: "Absolutely all our properties in the portfolio have facilities that compete with those of a 5-star hotel, meaning they have SPA, swimming pool, playground for children and adults. All projects benefit from payment in installments from the developer and we do not charge commission to our clients. In the package for investors, we offer services for obtaining assistance, bank financing, property management in what we sell. Most of those who invest in Dubai do so for the increased investment yield and for the tax facilities that Dubai offers at this time. No income tax is paid there, no annual property tax, and VAT in the residential area is zero. After they buy, they rent or resell; they buy in the project phase and sell when the price appreciates. For rents, the yield starts at around 8%, and for resale the invested capital can be doubled in the first year after the investment".

The cited source believes that real estate prices in Romania will not decrease in the coming period, mentioning: "In Romania we have many taxes and, therefore, high prices. Then investors turn to Dubai. In Romania, when you buy something you become a debtor, the right to property is not respected. In Dubai, you bought a property, a 4% registration fee is initially paid in the Land Registry and after that you don't pay any tax. The prices, in Romania, would start somewhere from 400,000 euros for a unit that in Dubai starts from 140,000, with all the facilities I mentioned".

• Romanians buy houses on the Costa Blanca, for investment

Real estate investment opportunities in an extremely popular area, for those looking for a pleasant climate and a high standard of living, can also be found in Spain, for example on the Costa Blanca.

Dorina Popovici, General Director of the agency Casa Spania 24, points out: "Spain is the second most visited country in the world and in recent years has become a popular destination for real estate investments. There are many advantages for real estate purchases in this country, such as : affordable prices, advantageous fiscal system with low taxes, modernized infrastructure, excellent climate with 320 days of sunshine, rental opportunities and flight schedules throughout the year. The portfolio of the Casa Spania agency includes over 200 exceptional properties with amazing views of the Sea Mediterranean, and prices start from 236,000 euros and reach up to 4.8 million euros. The old ones can cost from 80,000 euros."

According to his lordship, the profile of the buyer is that of the investor who buys to make a profit: "The rents are very good, being a tourist area, and they rent very well. In 8-10 years, the buyer amortizes his investment. There are property management companies that do this. We have been on the market for two years, but sales have started to increase, because, in addition to all the other advantages related to the price and the climate, it is also very important that the location is in Europe, being easy to reach".

• A first for recent years - developers have homes in stock, not in the project stage

In the second part of last month, those who are looking for housing, but also people who invest in real estate had the opportunity to visit the National Real Estate Fair, which took place at the Palace of the Parliament, between September 22-24.

The exhibition brought together developers, financial-banking institutions, as well as real estate agencies from Romania and abroad, who prepared updated real estate offers, subject to special price reduction campaigns. In this autumn's edition of TNI, 110 exhibiting companies were present, with a total of over 20,000 real estate offers for all tastes, budgets and needs - from low-cost properties, apartments in low-rise buildings, premium apartments in the center and the north of the capital, boutique properties, modular houses, Green Homes certified housing, wooden structure houses, villas on the outskirts of the capital, up to penthouses and investment opportunities on the Romanian coast, in Dubai, Spain, Miami, Florida and on the Mayan Riviera. During the event, visitors could also consult services related to the real estate segment, such as photovoltaic panels, filtration systems, air purification and various solutions to transform your home into an energy-sustainable one. One of the specificities of this fair was that the developers were able to present housing in stock, not just in the project stage, as was the case in previous years. This happened as a result of the fact that interest rates on loans rose constantly.