South Africans are increasingly turning their attention to offshore property investments, with Dubai emerging as a favored destination, according to Nombasa Mawela, principal of Seeff Property Group’s new office in the United Arab Emirates. While Dubai’s property prices can be staggering, Mawela emphasizes that there are still affordable options for South African investors, with prices starting from around R2.3 million (AED 450,000). For those seeking UAE residency and a UAE bank account, a minimum investment of just under R4 million (AED 750,000) is required.
Mawela highlights that the cost of properties in the R4 million and above range is comparable to what one would pay for a house in an upper-middle-class neighborhood in South Africa. Additionally, new financing options are available for those looking to relocate or invest in Dubai. Non-UAE residents can now qualify for a mortgage of up to 75% of the purchase price, making property ownership more accessible. Furthermore, property developers are offering flexible payment plans of up to five years for individuals who prefer not to obtain a mortgage.
According to Mawela, the return on investment for property in Dubai is among the highest in the world. The city is regarded as one of the safest places to live and offers a central location for travel to various parts of the world. With its rapid growth as a business, tourism, and shopping hub, opportunities for investment continue to multiply.
A wide range of property types is available in Dubai, from apartments to luxury villas. Prices vary depending on the location and size of the property. Basic studios can be found for approximately R2.3 million (AED 450,000), while one-bedroom units range from around R4.5 million (AED 875,000). Villas start from approximately R14.3 million (AED 2.8 million). Mawela notes that the Dubai property market has performed exceptionally well, with values continuously rising and seemingly no upper limit.
Certain areas have gained popularity among investors and expats. Downtown Dubai, renowned for the iconic Burj Khalifa and its status as a shopping and tourist destination, is a central location with easy access to various facilities. The Palm Jumeirah, home to some of the most expensive oceanfront villas in Dubai, is also highly sought after. Dubai Marina attracts expats for its combination of beaches and vibrant social life. Jumeirah Golf Estate appeals to expat families, particularly those who prioritize outdoor and play areas for children. The estate is also known for hosting the famous DP World Golf Tournament.
Seeff Property Group recognized the potential in expanding its operations to Dubai, with Chairman Samuel Seeff seizing the opportunity. With the help of Nombasa Mawela, Seeff Property Group now has a presence in Dubai. The company, which already has branches in various locations across South Africa and neighboring countries, saw Dubai as an exciting market to tap into. Dubai’s exponential growth and the presence of numerous South African brands and businesses further support the decision to expand into the city.
As South Africans increasingly explore offshore property investments, Dubai’s allure as a safe and thriving international destination, coupled with more accessible financing options and the potential for high returns, make it an attractive choice for those seeking investment opportunities outside their home country.