- Investments
Investing in UAE real estate requires a profound understanding of the available types and methods of investments in the property market to ensure maximum returns. Dubai and the UAE, in general, continue to be one of the most attractive locations for investors worldwide. Despite consistent price growth, the cost of property in Dubai remains comparatively low compared to other global capitals:
Therefore, one can judge the presence of potential future growth.
Before investing in Real Estate, it is crucial to determine the type of property you are willing to invest in.
There are the following types based on the construction stage: pre-launch or off-plan properties, newly constructed properties (new builds), and properties in the secondary market. The prices for these types of properties will significantly differ.
Investing in properties at the pre-launch or off-plan stage involves lower prices compared to similar apartments in already completed projects. On average, property value tends to double by the time it is ready for occupancy, making it crucial for investors to be informed about the area, developers, and market trends in demand for such properties to predict future prices.
New build properties refer to completed homes where you can purchase an apartment. The advantage of this type of real estate is that you can personally inspect the finished property, assess the quality of finishes, and start renovation work immediately. However, prices for new builds will be somewhat higher than off-plan properties.
These properties have already been purchased by a previous owner after construction completion and are available for resale. The cost of such properties can be comparable to new build prices or vary depending on the quality of finishes.
ROI is the primary factor to consider when choosing a property for investment. You can calculate ROI on your own or using our website’s specialized formula.
For instance, if you invest 30% of the property’s cost and the value increases by 1.5 times over the years, you can earn a net profit of $60,000 after spending $90,000 to buy an object valued at $300,000.
For purchases of ready-made properties worth $205,000 or more or when finalizing off-plan properties, you can also obtain residency with all the associated advantages for opening accounts and processing financial transactions.
Property payments can be made in various proportions: 10/90, 20/80, 30/70, 40/60, 50/50, 60/40. If you plan to rent out the property instead of selling it, ensure compliance with all necessary procedures for legal renting. Short-term rentals require obtaining a special license, as you can only rent out properties without a license for long-term leases of one year or more.
Off-plan refers to real estate in the preliminary or initial stage of construction. That is, it is property under construction.
Residents living abroad are not required to pay property tax. However, if the property is intended for commercial purposes, a 5% VAT is applicable.
Yes, according to UAE law (Law No. 26 of 2007), citizens of other countries can rent out their property. Renting can be done independently or with the assistance of a licensed company.
With a long-term lease, you can expect an annual income of approximately 8% of the property’s value. However, if you opt for short-term rentals, you can earn up to 15% of the property’s value annually.
According to UAE legislation, there is no mandatory period of real estate ownership before resale. Owners can sell their property even the day after its acquisition.
Owners or buyers of real estate can appoint a trustee and grant them an appropriate power of attorney. The trustee will have the authority to handle real estate transactions on behalf of the owner.
One can make sale and transfer transactions within two years after the power of attorney is issued.
Yes, banks in Dubai offer mortgage loans with different rates and terms. They provide financing for both ready-to-occupy properties and those under construction. Foreign citizens are also eligible for international mortgages on real estate. To qualify for a mortgage, borrowers must:
You must also be 21 to 65 years old (if employed), while self-employed individuals can obtain mortgages until the age of 70.
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