Dubai is undoubtedly a premier real estate investment destination for investors from across the globe. To fully understand the dynamics of the real estate market in the economic capital of the United Arab Emirates, we had the privilege of interviewing Manuel Manzoni and Marco Scardeoni, two industry experts and founders of LUX Investments—a top-tier Italian firm operating in the luxury real estate sector, offering highly specialized consultancy services for those looking to invest in the real estate markets of the UAE and Saudi Arabia to maximize their returns.
by Roberta Imbimbo
Mr. Manzoni, what makes Dubai’s real estate market so attractive to international investors?
Dubai is truly a gateway to the future. Strategically located between Europe, Africa, and Asia, it has, in recent years, become the beating heart of an interconnected world—a crossroads where major global economies converge. Thanks to its unique geographic position, it offers entrepreneurs the opportunity to operate in a global market environment, gaining direct access to vital markets with unprecedented mobility and flexibility. Its dynamic, business-oriented environment, strong leadership, and political stability make it a preferred destination for international investors. Dubai also offers a wide range of services and opportunities for families, making it one of the most attractive destinations for those seeking a safe, dynamic, and opportunity-rich environment—from education and healthcare to recreation and security.
Is Dubai’s real estate market safe and stable?
The United Arab Emirates enjoys an unmatched reputation for political and economic stability. Despite global challenges, the UAE has managed to maintain a business-friendly environment with policies focused on growth, investment support, and economic diversification. Moreover, following the 2007–2008 financial crisis, the country adopted stricter regulations to ensure the stability of the real estate market and prevent excessive price fluctuations. The introduction of escrow accounts, the requirement for developers to purchase land before launching projects, and regulations for managing funds collected from clients have all increased transparency and security in the market. These measures have helped reduce the risk of failures in the sector and increased the confidence of international investors. Together with the global recovery after the 2008 crisis, these strategic steps have allowed Dubai to quickly reestablish itself on the international stage as a promising hub for real estate investment.
Mr. Scardeoni, are there specific opportunities for Italian investors in the UAE real estate market?
From a fiscal standpoint, Dubai stands out for its investment-friendly environment, with virtually no taxes for residents. For those who are tax residents in Dubai, there is no personal income tax, nor any capital gains tax from property sales, while Italian investors are subject to tax based on their individual circumstances. Also, for tax residents, there are no taxes on rental income, meaning that investors who rent out a property do not have to pay any tax on the income generated. This favorable fiscal policy makes Dubai an especially attractive destination for international investors, creating an environment where the net return on investments is significantly higher compared to many other global jurisdictions where taxes can reduce profits.
How do you see Dubai’s real estate market evolving in the coming years?
The real estate market in Dubai over the next 15 years looks extremely promising and dynamic, thanks to a clear and well-defined strategic vision, as outlined in the Dubai Vision 2040. This long-term plan, announced by the government, aims to transform Dubai into an even more sustainable, innovative, and attractive city, further solidifying its role as a global hub for business, tourism, and real estate. Investors who choose to enter the market now, taking advantage of current favorable conditions, will have access to a continuously expanding city with great potential for property value appreciation.
