As we enter 2025, Dubai remains one of the fastest-growing luxury real estate markets in the world. It is outpacing main competitors such as London, New York, and Paris with its economy attracting global investors from hundreds of different countries.
Since 2020, it has been estimated that Belgian investors own around USD 646.4 million worth of real estate assets in Dubai.
Over the course of 2023 and 2024, Belgian investment activity in this Emirati city is on the rise with no signs of slowing down.
Belgium is known for its prosperous economy and high-income citizens. However, with near stagnant real estate growth rates and modest rental yields, Belgian investors are looking elsewhere for potentially better markets to invest in. Dubai perfectly meets the criteria with its strategic location, strong economy, and unrivalled property market growth.
Before getting drawn to the allure of Dubai’s booming property market, Belgian investors must compare several factors to ensure the viability of their investments.
Real Estate Performance
Belgium’s minimal nominal increase of 1.7% in Q1 2024 certainly appears positive, but this translates to just 0.6% when accounting for inflation. While Brussels’s property performance has remained stable, areas like Flanders and Wallonia saw drops of 8% and 6.5%, respectively.
In contrast, Dubai’s property prices are set for much stronger growth.
Rental Yields Heading in 2025
Belgian investors saw average yields of just over 4% in 2024. While property in Brussels offered slightly less in the way of rental returns. While respectable, these figures are below Dubai’s average of 6.05%.
Furthermore, areas like Al Furjan and Jumeirah Village Circle offer even higher yields, up to 9.21% and 8.08%, respectively. Just note that property type also is key, with apartments typically offering better rental yields but less capital appreciation potential compared to villas.
Average Property Prices
Belgium’s median property price per square metre in 2024 is EUR 2,466, making it a relatively affordable investor market – although the entry point is Brussels is around EUR 1,000 more.
Dubai, meanwhile, has a median property price per square metre of EUR 3,973, making it slightly more expensive than Belgium. However, Dubai’s higher growth potential, luxury amenities, and tax-free environment help to justify its slightly higher prices.
Return On Investment (ROI)
Dubai’s property ROI of 8-15% currently ranks it as one of the top cities worldwide.
Belgian real estate is seen as a stable, long-term investment, however, Dubai is considered a more attractive investment destination than Belgium, with higher ROI potential and steady growth.
Impressive Growth In Trade
Dubai and Belgium’s economic relationship is highly diverse, leading to improved cooperation across several sectors.
In 2022, the UAE’s total exports to Belgium were valued at $2.58 billion, including high-value products such as diamonds, hot-rolled iron bars, and gold. This trade emphasises quality over quantity, reflecting the premium nature of its exports.
Belgium’s exports to the UAE were valued at $3.69 billion in 2017, with diamonds, gold, and packaged medicaments being the leading commodities. This trading relation, between 1999 to 2017, grew at an annualised rate of 51.5%. Meanwhile, UAE’s exports to Belgium surged at an annualised rate of 80.9% from $133 million in 2017 to $2.58 billion in 2022.
These trades boost Belgium buyer confidence by knowing their home country is directly involved in Dubai’s economic prosperity and stability.
Local Support From The Belgian Business Council
Investors looking to set up in Dubai won’t have to navigate the market alone.
Thanks to the Belgian Business Council in Dubai, Belgian companies can seamlessly set up their organisations in the city. It aims to support and guide Belgian investors in the UAE, helping them understand its local regulations and market. They also organise networking events and conferences, providing opportunities for Belgian companies to connect with potential business partners in Dubai.
Additionally, approximately 3,600 Belgians live in the UAE, with most in Dubai. As such, guidance from fellow co-nationals can also be sought, allowing for a more seamless transition into the country.
Belgium’s Role In Dubai’s Sustainability Efforts
2023 was the year of sustainability for the UAE, making Belgium’s presence at major events such as COP28 even more important.
One notable Belgian contribution is the BESIX Group’s involvement in constructing the world’s largest energy-from-waste plant in Dubai. Partnering with Hitachi Zosen Inova, this joint venture will process 1,825,000 tons of municipal solid waste each year, transforming it into renewable energy to power roughly 120,000 homes. Situated at the Warsan landfill site, this facility will significantly cut down on landfill waste while promoting alternative energy sources.
These Belgian efforts, along with successful ongoing trade relations between the two countries, further solidify Belgium’s position as a key player in Dubai and the wider region.
If no capital gains, income, or property tax sounds too good to be true, welcome to Dubai. As a tax-free haven, Dubai property investors are maximising their returns with minimal tax obligations. This is especially enticing for Belgian investors who routinely pay the following:
Dubai’s tax-free status, meaning no income tax and no capital gains tax, gives Belgian investors a significant advantage. This incentive has resulted in an ever-increasing number of foreign nationals investing in the Dubai property market.
Dubai’s real estate market has matured significantly in the last 20 years. Now, the city has a regulatory framework that protects investors, ensures transparency, and reduces risks.
Belgian investors can own property in designated freehold areas, as long as they’re overseen by the Dubai Land Department (DLD). Furthermore, buyers have access to title deeds and property records, ensuring that their investments are legitimate.
With stricter rules on developers from ‘The Real Estate Regulatory Agency’ (RERA), Belgian property investors have never been in a better position. One rule states that property purchases require large upfront payments (30% to 50% of the property value), helping to prevent residential flipping. This also helps to promote market stability and long-term investment, ensuring a more secure and sustainable real estate environment for all investors.
The Golden Visa Program is, as its name implies, a prestigious visa that opens the doors of Dubai to Belgian property investors.
This visa grants residents a 10-year residency in the UAE as long as they invest in property (off-plan, completed, or mortgaged) worth at least AED 2 million (€508,874). Furthermore, recent amendments no longer require investors to put a minimum down payment of AED 1 million – great news for newer, more budget-conscious Belgian investors.
Additionally, investors aren’t limited to seeking out just the Golden Visa Program. They can also apply for the UAE’s Green and Blue Visas, which offer 5-year and 10-year residency options, respectively. However, both require different investment criteria which aren’t involved in property ownership.
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