Dubai is a city of records. It is a breathtaking city with ultra-modern architecture, progressive centres, deep-water tunnels, luxury stores, and artificial islands. The area attracts millions of visitors annually. For this reason, purchasing real estate in Dubai is highly beneficial for foreigners. There are many apartments and villas in Dubai for foreigners that are available for sale at affordable prices. This article will discuss the key points of real estate purchases.
Zones for buying real estate in the UAE
In the UAE, there are three main types of real estate ownership:
- Freehold – unconditional ownership of the real estate.
- Leasehold – purchase on a leasehold basis for 10 to 99 years.
- Commonhold – the scheme in which buyers purchase an apartment in full ownership, united in an association of tenants, and jointly own common areas. At the same time, the term of possession of real estate is not limited.
Citizens of countries that are not members of the Cooperation Council for the Arab States of the Gulf (GCC) are allowed to acquire freehold properties only in certain areas of the emirates of Ajman, Dubai, Ras Al Khaimah and Umm Al Qaiwain. Buildings and land in other areas can only be rented for up to 99 years (leasehold). Real estate cannot be purchased in freehold in the emirates of Sharjah and Abu Dhabi.
Key points of real estate purchase in Dubai
A deal cannot be performed without an agent
According to UAE legislation, the purchase of real estate or a land plot cannot be carried out without the participation of intermediaries. If you buy an apartment or a villa on the primary market, your transaction will be performed under the service of a licensed company. It is crucial to be confident in the company’s legacy, check the documents, and ensure that the transaction is legally secured. If you buy a house or land on the secondary market, check with the realtor whether the contract is the primary value of the object of interest to you and the intermediary involved in the transaction. There are quite a few real estate companies operating in Dubai; focus on the reviews to choose the best one.
Readiness to pay for the quality
Even though the Dubai real estate market is developing in severe leaps and bounds, there is still excess demand over supply. To own real estate in the UAE is considered reasonable even by those who do not work in the Arab Emirates and do not own a company here. And entrepreneurs, who are engaged in business in Dubai, or work as employees in good positions, tend to buy housing so as not to live in rented apartments. The high demand forms a decent cost per square meter in Dubai: about 3 thousand dollars. Pricing in the real estate sector in the UAE is exciting: the larger the area of the proposed housing, the lower the cost per square meter. For example, a villa will cost you 1.5 thousand dollars per square m, but the city apartment or townhouse – is not less than 2.5 thousand dollars per sqm because their area is more modest than the enormous villa. The cost does not seem so high, given that almost all residential properties are delivered with the full repair. The buyer can immediately move into the purchased housing.
Opportunity to get a resident visa
You can count on it only if you buy expensive housing, priced at least 1 million dirhams (just under $ 300,000). Purchasing luxury housing gives you the right to live freely for three years in Dubai. Extend the resident visa. You can, as long as you want, the main thing – to continue to own real estate and not violate the laws of the UAE. If you want to get a job in the Emirates for hire, you will have to get an additional work permit from your employer. If the house is registered in the man’s name, then his wife and minor children get the right to live in Dubai on his resident visa. Registering the property in the name of a woman is also possible, but in this case, the family’s mother will not be able to sponsor her husband and children.
Once you have fully completed the process of buying real estate, you can begin to use it as you see fit. You don’t have to use the property yourself. You can sell it right away to make money on the deal or rent out the house or apartment for short-term rentals, such as a few weeks or long-term rentals of several years. You can donate it to whomever you wish. One thing you can be sure of is that you have made a good investment, which will bring you both pleasure and profit.
Profitability of property buying now
If you have savings in your country’s currency, then converting them into currency to buy real estate right now is a good idea. Investing in Dubai is a great option not only to save but also to multiply your savings. For example, if you buy objects at the start of construction, then by the time of delivery, the object can earn up to 30% on resale due to growth in the object’s value.
On the whole
Dubai in the UAE has great perspectives to become the most advanced city in the world. The emirate impresses with breathtaking architectural objects, high business opportunities, affordable housing, and a good investment return. Do not hesitate to become a part of a new world where the craziest ideas of talented specialists are implemented.