For the real estate market in Dubai, 2022 was quite beneficial – for instance, according to the 3d quarter’s results, more than 25,000 transactions were concluded in the emirate. Sales are up almost 60% over last year. The foreigners began to actively buy luxury property in Dubai: this is a great way to save and increase funds during economic instability. Dubai real estate provides high profitability, and the main thing is to choose the right object for purchase.
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What Are The Advantages of Buying Property in Dubai?
Having a snow-white villa on the coast of the Persian Gulf or an apartment on the top floor of a skyscraper in the center of Dubai is a dream available to almost any foreigner today. Some people buy housing here to live with their families, others to start a business, and others simply seek to secure passive income from renting out an object. Obtaining real estate has advantages for each group of investors.
Getting a Resident Visa
Foreign citizens are given a 3-year resident visa when purchasing real estate in Dubai for AED 750,000 dirhams (about USD 205,000). The important point is that accommodation must be located in the freehold zone. Using mortgage funds is allowed, but only on the condition that the buyer pays 50% of the object’s value with personal funds.
Minimum Risks When Buying Off-plan Housing
According to changes in the legislation of the UAE from 2013, when selling unfinished properties, developers are liable to investors. In case of a construction freeze or project cancellation, the buyer can fully return the invested funds. But caution does not hurt because even with such laws, scammers manage to find loopholes. It is better to perform real estate transactions via entrusted realtors.
A Comfortable and Safe Life
For those not interested in the profitability of real estate in Dubai but who will move here for permanent residence, the advantage will be a high level of security. Every year the government invests a lot of money in law enforcement. The upbringing of citizens affects no less – in the UAE, there are prohibitions for the violation of which fines are issued and even imprisoned.
When moving to the UAE, foreigners feel comfortable in everything. Clinics, academies, kindergartens, gyms, shopping centers, and restaurants are near residential complexes. Despite the fact that Dubai was built on sand, almost all areas of the community are equipped with green areas where it is pleasant to walk with children.
Business Permit
Businessmen who come to Dubai to buy real estate not so much for the living but to quickly resolve issues by opening their businesses. Acquisition of housing in the emirate permits non-residents to become residents and, at the same time, to obtain a business license for 3 years. This period can be easily extended in the future, and such a need will certainly arise because Dubai is one of the most attractive cities for doing business in the world.
Loyal Tax Policy
And here are the advantages for foreign investors. In the UAE, people do not pay income tax. This means that the lessor will get full revenue from the “working” real estate.
Opportunities For Making Money on Real Estate in Dubai
The most reasonable method to make real estate in the UAE generate income is to rent out a house/flat. The number of gains varies depending on the kind of housing, its location (district), as well as the length of the lease. The average yield of real estate from its transfer for temporary use in Dubai is about 5-7% per annum and sometimes reaches 10%. With the right object choice, the buyer will begin to receive net profit within 10 years after the transaction.
Some investors prefer to resell real estate. For such purposes, objects at the development stage (off-plan projects in Dubai) are ideal since their cost is usually 30% lower. This option will take longer – construction takes a long time, especially regarding residential complexes. As we said, such transactions are now safe. The main thing is cooperating with proven developers such as Select Group, Emaar, and Dubai Properties.
Top Investment Properties in Dubai
When purchasing real estate for further renting, one should be conducted by the requests of foreign guests. In recent years, flats in Dubai have had the highest yield: apartments with 1-2 rooms. In 2d place are small townhouses, which are most often chosen for family holidays on the shores of the Persian Gulf. Country villas are the least frequently rented.
Which area is better for an object in Dubai to bring a stable profit? Even though housing by the sea is much more expensive than in any other part of the emirate, the demand for it remains extremely high. Vacationers do not want to go to the beach throughout the whole city, so they choose apartments in Dubai as close to the coastline. Real estate in Dubai with high yields is located in the most popular areas among tourists:
- Palm Jumeirah,
- Jumeirah Beach Residence,
- Business Bay,
- Dubai Marina,
- Jumeirah Lake Towers,
- Deira, etc.
Another good option is to buy a property in Dubai in a rapidly developing area until real estate here has grown in price and receives a stable income from gradually growing rent.
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