Broker on a property boom in the United Arab Emirates hotspot
A mortgage broker, who’s a specialist in both the UK and Dubai markets, reports a trend of British and European families relocating to the United Arab Emirates city, seeking a better life. There has been greater interest in the move since Labour came to power.
“A few years ago, the stereotype was single professionals in financial services, or crypto investors,” said Jack Goguelin (pictured), founder of Convici Capital. “That all changed recently - now we’re also seeing a big wave of families relocating. For them, important factors include proximity to schools, parks or green spaces, and also being close to a mall, which is where many people socialise, especially during the summer months - and of course, being near a golf club doesn’t hurt.”
Convici Capital, which was established in 2023 and operates out of London, Dubai and Jersey, has received an increase in inquiries about moving out of the UK, it reports, since Labour’s budgetary decisions. “It is boom time here at the moment, so it's a good time to be here,” said Goguelin.
An attraction for British residents relocating to Dubai is the ease with which they can do so, through the city’s Golden Visa scheme, he suggests. “It makes it incredibly easy for people to move here from places like the UK,” Goguelin said. “You can qualify by buying property, investing, starting a business, or simply earning a minimum salary. In the UAE, while certain activities are regulated, it's much easier to set up and operate a business here than in the UK. That ease of access, along with the tax advantages, safety, and sunshine, is a big part of why people are relocating in such large numbers. The UAE has minimal property taxes; no tax on rental income, no capital gains tax, and no estate tax on death. There’s a 4% property transfer fee, but that’s often waived by developers for off-plan deals, or sometimes shared with the seller in secondary market transactions.”
Goguelin, who relocated to Dubai himself three years ago, but continues to do business in the UK, paints a compelling picture of two very different markets. “When it comes to mortgages, the market in Dubai is still evolving when compared to the UK,” he said. “The UK process is getting slower and more drawn out. It’s the opposite in Dubai. The application process is straightforward; you can get a pre-approval in 48 hours, book a valuation within the same week, and complete a traditional mortgage transaction within four weeks. That’s faster than a lot of bridge loans in the UK. Dubai has embraced tech in a big way, with most government services handled electronically or through mobile apps. I don’t think I’ve printed or signed a physical document since relocating.”
Goguelin continued: “In the UK, things can be a bit more traditional. There's usually a heavier emphasis on regulatory detail, and even simple transactions often involve multiple parties, which inevitably leads to longer timelines. Here, mortgage approval is largely based on actual cash received into a borrower's personal bank account. That works well for salaried employees, but it can be more challenging for business owners, investors, entrepreneurs, and non-residents.”
Read more: How to be more successful in the mortgage business
The value of off-plan purchases in Dubai
Off-plan property purchases in Dubai are an attractive proposition for those who are business-savvy, according to Goguelin. “It’s a massive market here,” he said. “You can pay a small deposit and enter into a payment plan over, say, five years, often with a balloon payment at handover. Many people enter these deals with no intention of reaching handover. The goal is to sell the contract for a profit closer to completion. It’s a whole sub-market of its own.”
Those opting for a move to Dubai don’t actually spend most of their time in the city, it seems. “Dubai tends to go quiet during the summer, with many of our globally mobile clients, entrepreneurs and business owners, heading off to Europe,” Goguelin said. “They might only spend three to four months a year here, so instead of buying a villa on the Palm, they might prefer a more manageable apartment in DIFC (The Dubai International Financial centre – a designated financial hub in the city).”
So, what then are the potential financial benefits of buying property in the UAE?
“Dubai property can yield around 10%,” Goguelin said. “Capital appreciation has been strong too, with some areas seeing increases of 25% annually in recent years, and if you're a UAE resident, those gains and rental income are tax-free. That said, if you remain a UK resident, there are tax implications to consider. However, with the right structure, some good advice, and careful planning around how and when you extract funds, you can likely find efficiencies and make it work.”
