From Budapest To Dubai: Evaluating Investment Prospects In Property Markets

Investing in Dubai’s property market presents a compelling opportunity ripe with potential. Dubai offers unique advantages for investors seeking to diversify their portfolios and capitalize in their markets. Budapest, the vibrant capital of Hungary, is well-known for its modern development, making it an attractive destination for tourists and investors.

On the other hand, Dubai is well-known as a business hub, trade, and tourism. Dubai is renowned for its luxury lifestyle and tax-friendly environment. Investors can explore opportunities in property markets through the property portal Bayut which is the largest real estate portal in the UAE and offers various properties for sale and rent.  In the global real estate market, the Emirate’s strategic location at the crossroads of Europe, Asia, and Africa positions it as a key player, attracting real estate investors. Investors can leverage diverse opportunities from residential developments to commercial ventures, to achieve returns on investment and long-term growth. 

Unveiling Budapest’s Property Market Trends: A Comprehensive Analysis

Budapest, Hungary’s capital, is known as the most beautiful city in Europe. People from around the world come here for food, nightlife, the spas and the culture. The greener, quieter Buda offers unique cultural experiences and an easy-going way of life.

The climate in Budapest is mild and the temperature is rarely uncomfortable. The strategic location of Hungary in central Europe makes it accessible to a wide range of destinations.

Let’s discuss the most demanding properties in Budapest:

1. Szervita Square
2. Verecke Street
3. Oktober 6. Street

1. Szervita Square

Szervita Square is in the heart of Budapest, also known for the city’s rich history and vibrant energy.  The total area of the building is 12,500 m. square. This iconic square serves as a focal point for locals and visitors. The building consists of 2 top floors with 20 incredible residences right in the heart of Budapest.

A list of amenities in Szervita Square is listed below:

• Private car parking
• Smart home technology
• VIP lounge
• 24/7 security
• Private elevators
• Residential rooftop

Note: this data is derived from Mathew and Daniel’s luxury apartments market guide. 

2. Verecke Street

A terraced property in the city’s heart with a few luxury apartments was built in 2021. Most advanced smart home solutions are installed on the property. With this feature, you can change temperature and lighting even remotely. The property has a 467 sq. m. area specified for gardens, so the property is extremely quiet. 

A list of amenities in Verecke Street is listed below:

• American kitchen
• Air conditioning property
• Mortgage free
• Electric shutters 
• Heat pump heating
• Floor heating

Note: this data is derived from Mathew and Daniel’s luxury apartments market guide.

3. Oktober 6. Street

The total area of the property is 108 m. square. The entire wall services of the property are equipped with fiberglass nets to avoid any cracks in the building. The entire wall services of the property is equipped with tapestry. 

A list of amenities in Oktober 6. Street is given below:

• Circo heating 
• High ceilings
• Air conditioning

Note: this data is derived from Mathew and Daniel’s luxury apartments market guide.

Diving Into Dubai’s Property Market Trends: A Comprehensive Overview

Property prices in Dubai for luxury apartments and villas accounted for the record-breaking transactions in 2023. The Dubai real estate market maintains an impressive rate of growth. If we tap into the 2023 market report, this shows valuable insights into the property market trends of Dubai.

Let’s discuss the most demanding luxury properties in Dubai:

• Dubai Marina

• Business Bay

• Downtown Dubai

1. Dubai Marina

Dubai Marina is one of the most sought-after neighborhoods in Dubai. This waterfront community is equipped with hotels, luxury apartments, restaurants, and entertainment facilities. Dubai Marina, seamlessly linked via multiple thoroughfares, offers unrivaled accessibility to prime destinations. Retail centers, medical facilities, and groceries are just a few steps from the property.

A list of amenities in the Dubai Marina community is listed below:

• Shopping malls
• Easy access to supermarkets 
• Cycling tracks and gyms
• Public transport facilities
• Nearby schools and hospitals

Note: This data is derived from the Bayut 2023 Dubai property sales market report.

• According to the Bayut report, the average price/sq.ft. is HUF 174,066.

2. Business Bay

Business Bay is a mixed-use district in Dubai. The area of Business Bay is 46.9 million square feet. 22.1% is allocated for residential projects, 18.5% is allocated for commercial use, and 59.4% is allocated for mixed operations. This property is known for international and local businesses. 

A list of amenities in Business Bay is listed below:

• Shopping malls
• Restaurant and bars
• Clinics and pharmacies
• Public transport facilities

Note: This data is derived from the Bayut 2023 Dubai property sales market report.

• According to the Bayut report, the average price/sq.ft. is HUF 184,419.

3. Downtown Dubai

Downtown Dubai is a project of Emaar Properties located in the heart of the city. The Downtown area of Dubai is home to landmarks, shopping malls, and different attractions nearby. The property is equipped with high-rise buildings, penthouses, villas, and commercial, and residential properties. 

A list of amenities in Downtown Dubai is listed below:

• Hotels     
• Transportation and parking spaces
• Schools and nearby healthcare
• Supermarkets and shopping malls

Note: This data is derived from the Bayut 2023 Dubai property sales market report

• According to the Bayut report, the average price/sq.ft. is HUF 264,216.

Unlocking Opportunity: Why Foreign Investors Should Consider Dubai Properties

The market of Dubai properties attracts foreign investors with unparalleled opportunities. It offers a blend of luxury living, robust infrastructure, and high returns. Let’s explore the reasons why investors should consider Dubai Properties.

• Competitive property prices
• Higher rental yields
• Investor-friendly tax system
• Investor visa

Competitive Property Prices

Compared to other cosmopolitan hubs, Dubai offers competitive prices for foreign investors. These competitive prices in Dubai offer investors to gain more value for their property. Dubai offers business infrastructure and a state-of-the-art lifestyle. This is the most significant reason to buy luxury properties in Dubai. 

Higher Rental Yields

Foreigners investing in Dubai real estate can benefit from high returns on their investments. The villa properties in Dubai offer a higher ROI of 7.98%, while apartments in Dubai offer a higher ROI of 9.04%. (According to Bayut).

On the other hand, properties in Budapest yield an ROI of 4-5%. (According to the Wandering Investor).

Investor-Friendly Tax System

The most interesting benefit of investing in Dubai properties is no taxes on real estate. While most countries implement taxes on income and property. UAE is a tax-free country. Investors can consider that all the money they make in the UAE is 100% theirs. While buying property in the United Arab Emirates, you have to pay no annoying property tax. (According to Bayut).

On the other hand, the tax on the rental income in Budapest is 15%. There is also a capital gain tax of 15%, which decreases every year. (According to the Wandering Investor). 

Investor Visa

Real estate investors owning property worth equal to or more than HUF 200,606,800 at the time of purchase are eligible for a golden visa. This is a 10-year renewable residence permit. The husband or wife, children, and parents can be sponsored.

Documents required for the golden visa application are listed below:

•  A passport
• Availability of e-certificates
• A personal photo
• UAE ID
• A copy of the current residence permit

Residency status: A resident foreign investor and visiting foreign investors 

Investor Resident Visa

The real estate investors owning the property with a purchase value equal to or more than HUF 75,117,413 at the time of purchase are eligible for a two-year residential permit. The husband, wife, and parents can be sponsored. 

Documents required for the investor residential visa are listed below:

• A passport
• Availability of e-certificates
• A personal photo
• Health insurance
• UAE ID
• A copy of the current residence
• A copy of good conduct issued by the Dubai Land Department DLD

Residency status: A resident foreign investor and visiting foreign investors

Budapest Vs Dubai: In A Nutshell

Dubai emerges as a superior choice for several compelling reasons. Firstly the strategic location of Dubai serves as a hub for global business and tourism. Dubai offers a diverse pool of international investors and tenants, ensuring a steady demand for real estate properties. Secondly, Dubai offers an investor-friendly environment such as freehold areas like Arjan, Barsha Heights, Business Bay, and Cultural Village where foreigners can enjoy 100% ownership of the property with world-class amenities and an unparalleled skyline. 

On the other hand, Budapest offers European charm and cultural immersion. Budapest offers long-term stability and traditional investment landscape potential. Budapest embodies timeless elegance and cultural heritage.

Overall, Dubai’s dynamic economy, investor-friendly policies, strategic location, and commitment to innovation position it as a premier choice for real estate investment, offering superior prospects for investors seeking high returns, diversification, and growth opportunities compared to Budapest.

Frequently Asked Questions (FAQ’s)

Q: What are the key benefits for foreign investors investing in Dubai?

A: Real estate investors can have visa benefits such as a Golden visa in which the investor owns the property more than or equal to HUF 200,606,800  and an investor residence visa in which the investor owns the property more than or equal to HUF 75,117,413 eligible for these two types of visas. Moreover, Dubai offers a higher ROI of 7.98%, while apartments in Dubai offer a higher ROI of 9.04%. On the other hand, properties in Budapest yield an ROI of 4-5%.

Q: How is the real estate market in Budapest?

A: Budapest has the most expensive housing options, with an average offer price exceeding one million forints per square meter. Moreover, the average rental price of apartments totaled 4,591,399 forints per square meter for a 2-bed apartment in the country’s capital.

Q: Can you own 100% property in Dubai?

A: In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.

A list of some freehold areas in Dubai are listed below:

• Arjan 
• Business Bay
• Cultural Village
• Discovery Gardens