Ruble deposits today offer around 20% per annum. But what returns can you expect when investing in Dubai property?

Ruble deposits today offer around 20% per annum. But what returns can you expect when investing in Dubai real estate?

Ruble deposits

High interest rates.

— 15% tax on income from deposits.

— Inflation could eat up a portion or even all of the profit: according to the Central Bank, the official rate is around 8%, but actual inflation could reach 30% by year-end.

— Income in rubles with an unstable exchange rate: over the past month, the ruble has weakened by 8% against the dollar.

— There is a risk of freezing ruble deposits, similar to what happened with dollar accounts.

— Risk of increased taxes or additional expenses.

— Over time, risks related to transferring funds abroad increase.

Dubai real estate

+ A growing economy with a stable currency tied to the dollar. No local crises or sanctions.

+ Guaranteed property price growth during the construction phase.

+ Average yield of 7-10% in dollars.

+ Average annual increase in rental rates of 10-15%.

— Land tax at 4%.

— No guarantee that your specific property will achieve the desired appreciation.

— When renting out, tenants cannot be evicted before the contract ends: the law protects tenants' rights.

— You must notify the tenant one year in advance if you plan to sell the property or move in yourself.