The Arab world is steadily developing into the no.1 destination for both business and leisure in the world. One of the most appealing cities for investors is Dubai – a tax-free emirate-city that is expanding at an incredible speed and bursting with solid infrastructure, housing, and sky-scrappers.
The United Arab Emirates welcomes foreign investors, and it even grants them essential benefits for partaking in the country’s development. However, you must know a few aspects of the Dubai property market before you make an investment.
Follow these essential tips to ensure a smooth and profitable real estate transaction in Dubai:
1: Learn how buying property in Dubai works
Dubai allows you to buy a property that has already been constructed or which is in the off-plan project phase. Choosing the latter will require you to make a deposit according to the property value, which is usually around 10-15%, and will also require you to wait for the entire project to reach completion before moving in, renting it or selling it forward.
2: Know which are the freehold and leasehold areas
If this is the first time you’re investing in the UAE’s real estate industry, you should know that the market is a bit different from other countries. Here, you cannot purchase property wherever you want to if you’re an expat/foreigner. In this regard, the government offers two solutions:
The Freehold Area
This area represents the areas in Dubai where expats/investors from any part of the world can invest in a property.
The Leasehold Area
The leasehold areas only allow the residents to invest. As a foreign investor, you will not be able to own the property in the leasehold area, but you can lease it for a period between 10 and 99 years.
3: Team up with a real estate agency
The best way to accelerate the buying process is by teaming up with a reputable real estate agency in Dubai. The real estate brokerage firm will provide you with a better understanding of the local laws, tax exemptions and potential rental yield. Not only this, but your real estate agent will also help you find a property that fully matches your requirements.