Ambedda.com

Take the World at new Level

Property for sale in Dubai – Investing in real estate in the UAE

Dubai has become an international real estate hotspot, with major architectural developments and ambitious projects that seem to spring up overnight. With the market still young and demand exceeding supply, the time has come for foreigners to invest in this vibrant and captivating city.

In March 2006, the Freehold Law was passed allowing foreigners to lease or have freehold ownership of land in designated areas for 99 years. Ownership or leasing allows the foreign investor many advantages. Owners can sell or rent their property in Dubai if they wish. The investment potential is high, with a high demand for short-term rentals and returns of around 10 percent. Dubai does not charge taxes on income, including that obtained from the rental of properties. Also, there is no capital gains tax. With Dubai’s population expected to double in the next five years, which will cause rental demand to increase, a property purchased for the purpose of renting can be seen as a long-term income-generating asset. Owners are not required to live in the UAE and there are several local and international property management companies, including Colliers International, Cluttons, Asteco, and JG Property Management, that can take care of the property when the owners are away. Properties can also be passed on as inheritance if specific procedures are followed.

Some of the most popular real estate developments in Dubai (many of which offer gated communities for families with access to swimming pools and other residential amenities) are:

  • The Springs – Offers 3-5 bedroom villas, located off Sheikh Zayed Road.
  • The Meadows – Located near Dubai Media City, consisting of 3-7 bedroom two-story villas.
  • Emirates Hills – An exclusive, world-class development comprised of wholly owned villas located near Dubai Media City and Emirates Golf Club.
  • Arabian Ranches – A community of villas and townhouses just minutes from Dubai and Jebel Ali, but located in the desert, offering access to the Dubai Polo Club and Equestrian Center.
  • Dubai Marina: offers luxury apartments and villas with ocean views.
  • The Greens – Located near the Emirates Golf Course and offers modern low rise apartments available as studios, 1, 2 or 3 bedrooms.
  • Other emerging areas include: Business Bay, Palm Jumeirah, Jumeira Islands, Jumeira Park, Al Fujan, and Dubai Land.

Investing in the fast and dynamic Dubai market is fairly straightforward. The only document required is a relatively straightforward sales agreement. If necessary, foreigners can apply for financing. The two main lenders in Dubai, specializing in real estate mortgages, are Tamweel and Amlak. When buying property, it is advisable to use an attorney and ensure that a formal contract is signed, especially if it is purchased on the secondary market. It is possible and quite common to buy directly from the developer (like Emaar or Nakheel) who can charge a transfer fee of between 1 and 3%. It is typical to have to provide a down payment, plus installments, and the final installment must be paid after the property is completed or transferred. Upon completion, the property must be registered with the Dubai Land Department. There is a property registration fee equal to 1.5% of the property purchase price. Homeowners should also expect to pay an annual property maintenance fee that covers things like necessary electrical or plumbing repairs, site cleaning, and security.

Buying a home abroad is an important decision. It is essential to research all aspects of a potential investment and deal only with reputable real estate agents, as there is no formal structured buying process in Dubai. Known reputable real estate agents in Dubai include Better Homes, GoWealthy, Re-Max and Landmark Properties. The Dubai property market is likely to continue to flourish for the foreseeable future. Dubai is a thriving international destination offering a high standard of living, a tax-free lifestyle, and a safe and secure cosmopolitan community, making it the perfect place to invest.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *