Unlocking Dubai's Property Market: A Foreigner's Guide
As much as Dubai is known for its multicultural environment and most significant tourist attraction point, there is still no option for foreigners or expats to buy any kind of property in UAE, even if they want to invest a small portion in a business.
This article, as a guide to Dubai's property market, will help you understand how, as an expat, you will have to make your decision in the real estate market of Dubai; just keep reading.
Due to Dubai's safe and facilitative environment, many expats wanted to live there and also wanted to buy property for them to stay here, but they weren't allowed,d and they had to go to other countries for that investment. This was the case till 2002.
At the end of 2001, things took a shift when the government of UAE announced that international people could enjoy lease of properties in some of the selected areas in the city and around the city.
The government of Dubai issued the decree of freehold, in which it was mentioned that people at least 21 years of age can buy. Lease and rent out properties in the area, which is allowed by the authorities.
This massive change in Dubai real estate made waves in the market, and people across the globe who were fond of Dubai's environment and how advanced everything is here started to invest here.
This gave a massive boost to Dubai's economy; no investment attracted more tourists, and this thing is still in hype even after COVID-19.
A Detailed Guide to Dubai's Property Market For Foreign Investors
As to how you, as an expat, invest in this market, we are here to guide you. This article will be a guide to Dubai's property market for you. So you know the different types, rules, and regulations of real estate here in UAE and will be able to invest smartly.
- 1. Types of Property in Dubai
- 2. How can you buy property in Dubai as an expat?
- 3. Legal Aspect While Buying the Property In Dubai
- 4. Tips for Expats Investors
1. Types of Property in Dubai
There are different kinds of properties in the real estate market of Dubai. As this article serves to be a guide to Dubai's property market, we are going to discuss these types in detail in this section.
Residential Property
Suppose we talk about residential property, which includes high-rise apartments in famous areas like Dubai Marina and downtown. Townhouses are also available in areas like Arabian ranches, DAMAC Hills, and the Reem community.
In this area, you will find the best-constructed townhouse, which is the middle option for those who are looking for something in between the villas and apartments.
If you want to invest in villas, then you can search for them in areas like the Palm Jumeirah Jumeirah Beach residential area, where there are beautifully crafted villas with the best views and tremendous space in the backyard.
Commercial Property
In terms of commercial property, you will have multiple options to invest in. DIFC and Business Bay are the business districts that offer office spaces to companies and investors who are looking to open up their companies.
You can also purchase small shops or retail spaces to start your own business, and these can be purchased in shopping malls and commercial markets.
Lease Property
This kind of property is available for you on a lease period that goes up to 99 years. In this, you only own the property, not the land. You can easily take any office or shop and lease it out so you can earn and pay your end of the lease.
Read More: Why To Invest In Dubai Real Estate
2. How can you buy property in Dubai as an expat?
If you want to invest in this real estate market and want to buy or lease out to earn more and make it your side hustle, then this section will further guide you about the buying process.
We will make sure to provide you with every detail in this article, which serves as a guide to Dubai's property market. There are simple steps that you need to follow through which you can easily buy a property in your desired area.
Step 1
In the first step, you need to search out the area that easily fits your needs and especially your budget. Look out on the internet and also get help from agents. Whether you want to buy an apartment and put it on rent, or you want to buy an office space for your company, search about the area.
Popular spaces for international investors in Dubai are the Dubai Marina, Jumeirah Beach, Pal Jumeirah, DAMAC Hills, and downtown Dubai. Here, the property business has just boomed drastically in the last, and you will find plenty of options for yourself.
Step 2
As an international investor, you need more help than searching on Google; you need to hire a real estate consultant who will guide you properly about the market's ups and downs and will bring the best deals available for you. They will also guide you in completing the legal paperwork that is required to buy property in Dubai.
Step 3
While investing in Dubai's competitive market, if you need a mortgage or loan, then the great news is that most of the banks here offer financing facilities for expats. For this, you need to get your approval and understand your budget in detail. Banks that provide loans to foreigners are Standard Chartered, Ajman Bank, Emirate Islamic Bank, and many others.
Step 4
Once you find an excellent offer, ask your agent to negotiate and move further with the buying process. As both parties agree on the same terms and conditions mentioned on the documents, including price, payment method, and other details then they will have to sign the agreement.
In the end, after signing the documents, the property's ownership will be transferred to your name. Remember this process involves proper registration processes like submitting documents at the Dubai land department and paying the required fee, etc.
Read More: Vat On Rent In UAE
3. Legal Aspect While Buying the Property In Dubai
As we are trying to make this article a guide to Dubai's property market, which will help you in your future endeavours. We are now discussing some legal considerations that you need to check before embarking on the journey of investing in this region.
Properties Ownership
Make sure all the properties that you have bought, leased out, or have taken on rent are registered with the DLP (Dubai Land Department). This step protects your ownership rights.
Registration Fee and Taxes
As there are no taxes on property in Dubai there are still some fees and taxes other than that you need to pay, which include; 4% of the transfer fee which is paid during the registration to the Land Department.
Another registration fee for properties starts from 2000 AED and goes up to 50,0000 AED, depending on the property value.
Residency Visa
Another perk of investing here is that if you invest in property of more than 650000 or more, you will be able to apply for a residency visa. This visa can be renewed after some interval as long as you own the properties.
Read More: Sell Property In Dubai
4. Tips for Expats Investors
As the fraud rate here is equal to zero, still, as a foreigner, you need to be sure of the different aspects before you start investing in any other new country. Before diving into the property business of UAE, you need to consider these tips for a more secure and safe investment.
Do your best research on Dubai's market, and look out for trends and news in the real estate world in the UAE. Knowing everything is the best tool you can have. Searching about the market will help you understand how the flow works here.
Hiring or consulting with any legal advisor or agent is very crucial, as a new investor, you will need a little help from these people as they will guide you properly regarding legal procedures, which are crucial for business in this country.
Before making any last decision, it is advised to personally visit the site which you are going to buy or take on rent as this will ease your doubts and will help you in making the wise decision.
Read More: Buying Property in Dubai Marina
Final Words
As the Dubai property market is increasing day by day, investing here will surely be rewarding for expats. With UAE's growing economy, 0 tax benefits for people, and more profits on rental properties, this country is offering tremendous opportunities for new investors and real estate agents to come and get their share of the profit. We have discussed every aspect of this topic to help you in making your future investing decisions and by following these steps, you can invest wisely in Dubai's market.
However, it's important to notice that investment in any industry requires patience and time, and there are some risks associated with this; you cannot expect profit overnight. This market here is attractive, but it's also competitive and swift, which makes you an active marketer so that you can stay focused on the latest ups and downs that are occurring in the market. As an expert or outsider, you need to interact with local expert agents to know more about the market and changes in law that might affect your property business or investment decisions.
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