5 Things to Know About Investing in Dubai Property
Dubai, a high-profile multicultural city, continues to attract visitors from around the world for both business and leisure. The city’s unique laws, attractive developer offers, and flexible payment plans have drawn significant foreign investment, with foreign investors now comprising 20% of the Dubai property ownership real estate market. Recent events like the World Expo 2020 have also fueled Dubai’s booming property investment market. There are many properties for sale in Dubai, but before diving into real estate investments, here are some essential facts to help you make informed decisions based on your needs, finances, and plans.
1. Work with a Registered Agent
While you might be tempted to work with a freelance broker, it’s crucial to understand that you won’t have any legal recourse against them in case of transaction issues. To protect your rights, it’s better to work with a licensed agent certified by the Real Estate Regulatory Agency (RERA). A licensed agent specializes in the real estate market and ensures your transactions are protected by law. Always ask for their official papers to verify their credentials.
2. Choose Prime Locations
Although property projects are developing across Dubai, certain neighborhoods are particularly sought-after due to their excellent location and potential for high returns on investment (ROI). Investing in a safe, amenity-rich location near schools, main roads, parks, and gardens can greatly influence your ROI. DUBAILAND, for instance, is considered one of the best places to invest in Dubai. This community offers luxurious residential projects like Mudon Al Ranim, Villanova Villas, and Remraam, all designed to meet buyers’ needs with family-friendly amenities and convenient facilities, including easy access to Downtown Dubai and the airport.
3. Optimize Your ROI
Investing in Dubai’s property market offers some of the highest rental returns globally, with yields around 10%, compared to 3% in London. Investors can benefit from attractive property prices and flexible payment plans by investing in buy-to-let properties, achieving a ROI of 5% to 6% for ready properties. With many visitors preferring short-term rentals for a homely experience, smart investments can generate substantial rental yields.
4. Immediate Residency Benefits
The Dubai government’s new initiatives, such as residency permits for retirees and remote workers, make it possible for investors in residential properties to gain legal residency in the city. The expansion of the 10-year Golden Visa program is particularly attractive to investors and entrepreneurs. To qualify, foreigners must invest in a single freehold residential property, not commercial properties. The 10-year visa is maintained as long as the property is owned, offering benefits like opening a bank account, getting a driver’s license, and registering a car in Dubai, along with many other family benefits. The process is hassle-free and typically completed in two
weeks.
5. Encouraging Investment Law
Dubai’s flourishing real estate market is supported by a low tax rate, high-quality properties, favorable property regulations, and reliable infrastructure. A new mortgage law also encourages foreign investment. Additionally, purchasing off-plan properties allows for lower down payments with installments ranging from 40% to 60% over the next two years, and a loan on handover for the remaining amount.