Over the last few years our advisors have spotted a certain pattern, and it’s not limited to a single client. A Zimbabwean investor who lives in London or Johannesburg contacts us, typically following a referral from someone who has already made a purchase, and the discussion usually begins in the same way: “I’ve been looking at property back home, but I keep hearing about Dubai.”
That instinct is worth taking notice of; the Zimbabwean diaspora transfers billions of dollars back to the country each year, and a considerable portion of that money has in the past been invested in land and residential property in Harare and Bulawayo. There’s nothing wrong with that. However, an ever-growing number of investors, especially those who earn their income in pounds, rands, or dollars, are putting a fair question to themselves: if I’m going to invest my capital in property, why not do so in a place that has a stable currency, clear title deeds, and the added benefit of residency?
At WealthEx Capital we work with that gap, which is the reason why investment in real estate in Dubai has become such a natural topic of discussion among the Zimbabwean diaspora specifically.
Why Dubai Appeals to Zimbabwean Investors
Almost every conversation we have with clients from Zimbabwe—whether they are phoning from Manchester, Cape Town, or Harare itself—brings up a few points.
Currency Stability
It is typically the first point that is raised and requires little explanation for anyone who has looked at the history of the Zimbabwean dollar. Since property in Dubai is dealt with in AED, a currency tied to the US dollar, the value of the asset is not subject to the kind of volatility which has in the past worn down local investments. For an investor making remittances back home, this stability alone alters the calculation.
Freehold Ownership with Clear Title
The property market in Zimbabwe does offer genuine opportunities, but it is legitimate to be concerned about title disputes and unclear ownership records, something that is frequently mentioned in forums for the diaspora and in investor guides. Under Dubai’s freehold system, especially in the designated investment zones, foreign buyers have full ownership rights that are registered with the Dubai Land Department. The title is clear, can be searched, and is enforceable.
The Residency Angle
It is in this area that Dubai outperforms the majority of other alternative destinations. If someone invests AED 2 million or more in property, they become eligible for a ten-year UAE Golden Visa, which can be extended to include their spouse and children. For families considering a move, those looking for better schooling, or anyone who just wants a second home outside Zimbabwe, this residency advantage turns the property investment into a lifestyle choice as well. We have already written more on how this visa route functions, so it’s worth reading if you are thinking about securing long-term residency.
Rental Yields That Outperform Most Global Cities
Dubai regularly offers gross rental yields that are higher than those available in London, Johannesburg, or Cape Town, the yields usually being in the 6 to 8 per cent range depending on the area and the type of property. For diaspora investors who are used to comparing the returns from Dubai with those from the UK or South Africa on buy-to-let investments, this difference is often the deciding one.
The UK and South Africa Advantage
We directly tell our clients this because it influences the way we carry out our outreach, and it’s also something that Zimbabwean investors should understand: the diaspora communities in the United Kingdom and South Africa are, on average, more capital-ready when it comes to investing in property in Dubai than buyers who are still based in Zimbabwe.
It all boils down to earning power and access to financing. Investors who earn in GBP or ZAR and have already built up credit histories and banking relationships in those countries are usually in a better position to meet the large initial capital amounts that Dubai property requires, especially in the case of off-plan purchases involving structured payment plans. This does not imply that investors based in Zimbabwe are excluded from this situation; it only means that the way in which they enter the market is often different, for example by having a family member based in the UK or South Africa co-invest with them, or by using funds that are already held offshore.
If you are a member of the Zimbabwean diaspora in London, Manchester, Johannesburg or Cape Town and have already been slowly building up your savings with an eye on buying property, then this is the kind of case that our team comes across most frequently.
What the Investment Process Looks Like
Getting property in Dubai when you are outside the UAE is easier than most new investors anticipate, but it is still helpful to be aware of the steps beforehand.
Step One: Define What You Actually Want
Investors who are primarily concerned with income and those who are mainly interested in residency end up looking at quite different properties, even when they have the same budget, and we always begin each client relationship with this discussion before suggesting a single unit.
Step Two: Property Selection
It is in this case that local knowledge is most important; places such as Downtown Dubai, Business Bay, and Dubai Marina are generally well-suited to rental income strategies, whereas newer communities tend to provide better capital appreciation for investors who are willing to hold their properties for a longer period. Our selection is based on your objectives, not on the projects that are currently being promoted that month.
Step Three: Reservation and Payment Structuring
Properties that are not built in advance usually involve making an initial down payment and then following a series of payments linked to the various construction milestones, a method which is more in line with the way diaspora investors who have to manage currency flows from abroad would like it than with paying a single lump sum.
Step Four: Legal Transfer and Registration
Ownership is registered with the Dubai Land Department and this results in you receiving a title deed in your own name. Our team look after this aspect so that clients who are buying from Harare or London need not be physically in Dubai when they carry out a purchase.
Step Five: Golden Visa Application (Optional)
For investors who have passed the AED 2 million mark, the residency application process starts at this point and runs alongside the rest of the process instead of taking extra time.
A Market Worth Taking Seriously
This does not mean that investors should give up their investments in their home country. There is real long-term potential in Zimbabwe’s property and agricultural sectors and many of our clients have assets in both of these markets. The simple fact is that when investors are considering where their capital is most effective, the combination in Dubai of currency stability, ownership security and residency advantages has become hard to overlook, particularly for those who are already earning and saving in stronger currencies overseas.
When considering a property investment in Dubai and you want to know what kind of property your budget actually allows you to buy, our advisors deal each week with customers in the UK, South Africa, and Zimbabwe over this very issue.
Talk to an advisor to look into your options.