Why Canadians Are Increasingly Investing in Dubai Real Estate

A Shift in Investment Priorities

Canadian investors are diversifying their portfolios like never before, with Dubai emerging as a top destination for real estate investment. Rising property costs, restrictive rental regulations, and recent legislative changes in Canada are driving this trend, while Dubai offers tax-free rental income, affordability, and strong returns. As a Certified International Property Specialist (CIPS®) and a Realtor® with expertise in both Canadian and Dubai markets, I’ve been helping Canadian investors navigate this transition to build profitable portfolios in Dubai.

Let’s explore why Canadians are becoming one of the leading buyer groups in Dubai real estate.

If you are a Beginner in Real Estate fill out the form to get a proper Guide:

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01. Canada’s Real Estate Challenges

Skyrocketing Property Costs

• Toronto: Median prices exceed $1,000-$1,200 per square foot, with downtown condos often surpassing $1,300.
• Vancouver: Prices range from $1,300-$1,500 per square foot, ranking among the highest globally.
• Montreal: Slightly more affordable at $800-$1,000 per square foot, but increasing demand is pushing prices higher.

💡 What This Means: For the same budget, Canadian investors can secure larger or more luxurious properties in Dubai, where median prices range between $350-$400 per square foot.

Low Rental Yields

• Toronto: Rental yields average 3-4%, barely covering mortgage and maintenance costs.
• Vancouver: Similar yields of 2.5-4%, further reduced by property taxes.
• Montreal: Slightly higher at 4-5%, but still limited by rising costs and tenant-friendly laws.

Short-Term Rental Restrictions

Airbnb regulations in Canada have made short-term rental investments less profitable:

• Primary Residence Requirement: Cities like Toronto and Vancouver only allow short-term rentals in a host’s primary residence, limiting opportunities for investment properties.
• Licensing and Taxation: Hosts must register and pay GST/HST on short-term rental income, reducing overall profitability.

💡 Impact: For Canadians interested in short-term rental income, Dubai offers a more investor-friendly environment with easier licensing and no additional taxes.

Prohibition on Foreign Buyers

Canada’s foreign buyer ban (enacted in January 2023) prohibits non-Canadians from purchasing residential properties for two years. While aimed at cooling the housing market, it has also affected Indian immigrants and other non-permanent residents living in Canada, limiting their ability to invest locally.

💡 Why It Matters: This restriction has driven non-resident and immigrant investors to explore international markets like Dubai, where they face no such barriers.

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02. Dubai: A Compelling Alternative for Canadian Investors

Affordability and Strong Rental Yields

• Affordability: With median prices of $350-$400 per square foot, Dubai offers better value than Toronto, Vancouver, and Montreal.
• Rental Yields: Long-term rentals in Dubai deliver yields of 8-10%, while short-term rentals in tourist-heavy areas like Downtown Dubai and Dubai Marina can exceed 12-15%.

Tax-Free Rental Income

Unlike Canada, where rental income is subject to both federal and provincial taxes, Dubai allows investors to keep 100% of their rental income.

• While Canadian citizens must report global income to the CRA, Dubai imposes no additional property or income taxes, maximizing profitability.

💡 Example: A $1 million property in Toronto with 4% yields generates $40,000 annually, taxed at approximately 30-50%, leaving just $20,000-$28,000 net income.
In Dubai, a $1 million property with 9% yields generates $90,000 annually, with no local taxes.

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03. Flexibility with Off-Plan Properties

Dubai’s off-plan market offers unique advantages:

• Low Entry Costs: Down payments start as low as 10-20%.
• Staggered Payments: Investors can spread payments over several years, even post-handover.
• Sell Before Completion: Investors can capture market appreciation by selling properties before project handover.

💡 Flexibility: This model is ideal for Canadians seeking to maximize returns with minimal initial capital.

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04. The Golden Visa: A Gateway for Canadian Investors

Dubai’s Golden Visa is attracting record interest from Canadians:

• Eligibility: Invest a minimum of AED 2 million (~$745,000 CAD) in real estate.
• Benefits:
• Long-term residency (5-10 years).
• Includes spouse and dependents.
• Freedom to live, work, and study in Dubai.

💡 Trend: With rising Canadian interest in programs like Portugal’s Golden Visa, Dubai’s Golden Visa is quickly gaining traction as a competitive alternative.

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05. Lifestyle Appeal

Why Canadians Are Drawn to Dubai

• Tourism Hub: Dubai welcomed 16.73 million visitors in 2023, with numbers projected to exceed 20 million by 2025.
• Global Connectivity: Direct flights from Toronto, Vancouver, and Montreal make Dubai accessible year-round.
• Year-Round Sunshine: Dubai’s warm climate offers a stark contrast to Canada’s harsh winters, making it an attractive destination for both tourists and long-term residents.

💡 What This Means for Investors: Dubai’s lifestyle appeal ensures consistent demand for both short-term vacation rentals and long-term leases.

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06. Supply and Demand: The Numbers

• Population Growth: Dubai’s population grew by 2.5% in 2023 to reach 3.6 million and is expected to hit 5.8 million by 2040 under the Dubai 2040 Master Plan.
• Controlled Supply: Developers are delivering 35,000 new units annually, but demand continues to outpace supply in prime areas.

💡 Investor Insight: This supply-demand imbalance creates opportunities for consistent price appreciation and rental income growth.

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How I Help Canadians Invest in Dubai

As a Certified International Property Specialist (CIPS®) and Realtor® with expertise in Canadian and Dubai markets, I specialize in helping Canadians navigate Dubai’s unique investment opportunities:

• Expert Guidance: From understanding Dubai’s tax advantages to navigating off-plan properties.
• Trusted Network: Access to RERA-certified agents, top-tier developers, and property management companies.
• Full-Service Support: Assistance with Golden Visa applications, financing, and portfolio management.

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Let’s Build Your Dubai Portfolio

If you’re ready to diversify your investments with Dubai’s high-yield, tax-efficient real estate market, let’s work together. With offices in Canada and Dubai, I offer tailored solutions for Canadian investors.

📩 Contact Info:
🔹 Ghada “GG” Benitez
🔹 Certified International Property Specialist (CIPS®)
🔹 Licensed Realtor® | DRE# 01487964
🔹 Realty Executives Dillon
🔹 Host of the Dubai Connect Podcast™
🔹 📲 +1-619-339-7978 | 🌐 www.GGBenitezInternational.com