The real estate market of one of the most popular destinations in the world is in constant growth. It abounds with hundreds alluring apartments and villas in convenient locations. Being offered by famous developers, they feature high quality and unique characteristics. How not to get lost in the real estate market in Dubai and how to buy real estate in the UAE without any difficulties? Let`s find out the answers to these and some more questions in this article.
The state of real estate market of Dubai nowadays
No secret that the real estate market in Dubai is extremely active and has a lot to offer to any foreigner. According to the Dubai Land Department, in January 2022 there were almost 75% more transactions with a 145% increase in the total value of transactions compared to the same period in 2021. There were 15% more real estate transactions in January 2021 than in January 2020.
In general, we can distinguish two main reasons for high interest in Dubai`s real estate market:
- Reviving of tourism after pandemic
- Favorable conditions for property purchase.
Let`s have a closer look at these two factors.
Such a demand on apartments and villas in the emirate is influenced by the fast revival of the tourism industry after the pandemic. Being the first country to open the borders to tourists, the UAE has created favorable conditions for foreign businesses and potential residents. Investors from all over the world were actively investing in local real estate, earning passive income from renting it out.
People from all over the world consider relocation to Dubai because of simplified tax system and high level of life. Besides, the current world`s situation and the laws of the country allow potential residents to work in foreign companies and use alternative currency.
Benefits of real estate purchase in Dubai
The most vivid advantage is that you become an owner of a premium housing option in the quickly developed metropolis. You may either use it as a private home and live a happy life with your family or rent it out. High investment return is a pleasant factor as well. Not to beat around the bush, if you invest in real estate in Dubai from $274,000, you have the right to obtain a residence permit in just 1 month. It is the registration of immigration status of the UAE. The program can include family members: the spouse and dependent children of the investor.
The process of buying real estate in Dubai
The purchase process consists of standard steps that accompany most deals with foreign real estate:
- find a suitable object
- sign the contract
- make a deposit
- register the property in the name of the new owner
- pay the necessary fees.
This is a brief instruction on how to become a successful owner of a stylish property in the emirate.
Before making a transaction, make sure that you have chosen the necessary location, desired property including all the amenities. Consider your budget and look through necessary documents. Consult with specialists to become aware of possible additional documents needed.
After the purchase, investors must pay a registration fee (Dubai Land Department transfer fee) amounting to 4% of the property value. In some cases the fee is divided proportionally between the buyer and seller. The buyer also pays a registration fee depending on the type of property (from 2,000 to 500 thousand dirhams). To get a certificate of ownership it is necessary to pay a fee at the local court ($ 70).
Additional costs may face investors who are planning to rent property through a local rental agency: it can take about 5-7% of the rental income. But the investor himself receives 7% of the regular annual yield for long-term rentals and 10-11% for short-term rentals.
Hidden issues to pay attention to when buying real estate in Dubai
- Visa regime
The UAE is known for its high level of security and provided safety. To build such a reputation, the government established strict selection criteria for obtaining residence visas to stay in the country. Only the owners of property worth more than 1 million dirhams are enabled to obtain a Dubai visa. If the house you buy is cheaper, then there is no basis for you to enter the country. In this case, to reside permanently in the country you can register your company (from $ 5,500), get a job in a local company, enroll in a local educational institution or get a family visa from a close relative who already has residency status.
- Cultural peculiarities
The UAE consists of seven emirates. Dubai is one of the most loyal ones to foreigners and tourists. The emirate welcomes people of different nationalities offering the same rights and opportunities. Nevertheless, the UAE is officially a Muslim country with its own laws, customs and traditions, which imposes a certain imprint on the daily life of the population. There are quite strict norms of behavior, especially in public places. Although many expatriates admit that the restrictions have little or no effect on their lifestyle, cultural differences and peculiarities cannot be discounted.
- Maintenance fees
The owner of a property in Dubai is responsible for its proper maintenance and must pay the costs of its maintenance set by the property management company. Maintenance fees include the cost of guarding the building, cleaning common areas, garbage collection, maintaining infrastructure (parking lots, pools, gyms, recreation areas), etc. Typically, such fees are charged annually, depending on the project, anywhere from $20 to $80 per square meter per year. When property is rented, the cost of its maintenance is covered by rental income. However, if the property is not rented out, its maintenance costs must be taken into account, regardless of whether it is used or not.
The final word
Purchase of real estate in Dubai is undoubtedly a rational solution. It helps to save money in unstable economic situations and even earn some more. To get the beneficial property, explore the above-mentioned hidden issues and decide on the necessity of buying. Emirates.Estate is ready to offer luxury apartments and villas in Dubai from renowned developers at reasonable prices. Do not wait to open the website and enjoy the versatility of Dubai`s real estate market.
