Why Dubai’s Real Estate Market is the Ultimate Investment Opportunity
The UAE’s investment landscape is evolving at an impressive pace, offering a diverse range of asset classes to suit various risk profiles. From stock trading and private pension schemes to real estate, funds, and deposit accounts, there’s an investment option for everyone across Dubai, Abu Dhabi, Ras Al Khaimah, and Sharjah.
Real estate, in particular, stands out as a top choice for international investors. Recent regulatory measures have stabilized the market, making it more secure and accessible. Key changes include stricter rules on property transactions and the introduction of 100% freehold ownership for foreigners in Dubai and Abu Dhabi, replacing the previous 99-year lease structure. Additionally, long-term residence visas and pension visas, introduced in 2019, have further enhanced investment appeal.
In this article, we’ll explore various investment programs, highlight the benefits of investing in the UAE, and provide insights into the lucrative real estate market in Dubai.
Why Invest in Real Estate in Dubai?
Dubai stands as a global beacon for real estate investment, offering unparalleled opportunities in a thriving economy. The UAE has taken significant steps to bolster economic growth, including easing business regulations and reducing restrictions on real estate lending. Here’s why Dubai remains the top choice for investors worldwide:
- Tax-Free Gains: Enjoy zero tax on capital gains and income.
- Residency Benefits: Obtain a renewable residence or investor visa, granting long-term security.
- Legal Protection: Strong property laws ensure safe and secure investments.
- Tax Treaties: Avoid double taxation with a UAE tax residency certificate, applicable in partnered countries.
Dubai’s iconic skyline, premium neighborhoods, world-class infrastructure, and exceptional safety make it a desirable destination for living, working, and investing. The city’s stability, coupled with its booming business landscape, guarantees a secure and rewarding investment environment.
Seize the opportunity to invest in a city where ambition meets innovation and dreams turn into reality!
The Investment Process in Dubai Real Estate
Investing in Dubai’s real estate market is straightforward but may differ from what investors are accustomed to. Hiring a trusted real estate agent and lawyer can streamline the process, from drafting contract terms and signing the Memorandum of Understanding to handling payments and ownership transfers.
The UAE’s policies, even before the global pandemic, have been focused on attracting real estate investors. With competitive mortgage options, buyers can secure two loans for one property at low-interest rates. Payment terms range from 50 to 100 years, with the ability to transfer repayment to future generations, ensuring affordability and sustainability.
The UAE’s banking sector plays a vital role in market stability, offering expats competitive mortgage rates. Lower loan interest rates and consistent rental income make real estate investments increasingly attractive, further driving demand. Dubai’s market offers a unique combination of accessibility, long-term benefits, and robust growth potential.
How to invest?
As an expat, you can invest in real estate with cash. Moreover, in Dubai, you can apply for a mortgage on the house you are going to live in or use as an investment property. However, depending on the circumstances and the property you want to buy, the amount of deposit you need to pay will vary. If you are looking for a property for an investment, you usually are at greater risk, thus the bank will ask for a higher initial deposit.
Purchase of ready and off-plan real estate by mortgage
If you require a mortgage, you need to talk to a mortgage adviser and make sure that your loan application has been pre-approved by your local bank. The minimum deposit for expats is 25% of the cost of housing, and 6-7% for related expenses. If you want to purchase a property worth more than AED 5 million, the maximum loan-to-value ratio will drop to 65%. It means that you will need a 35% deposit.
Once the mortgage is pre-approved and the mortgage broker or bank has reviewed the available options with you to determine your maximum eligibility for the loan, you will be able to set your budget. The mortgage repayments usually amount to approximately 25% of your monthly income. However, you need to make sure you take out the right loan amount that suits your needs and ability to pay.
What does the investor get?
- The possibility of obtaining a resident or investor visa for 3, 5, or 10 years. It can be extended to family members (wife/husband and minor children) with the right of extension for a similar period;
- The absence of double taxation, the tax on income and capital gains;
- A reliable banking system;
- High profitability of projects;
- The process of buying and selling and renting real estate is reliably protected at the legislative level;
- Living in a country with a stable economy and a national currency;
- Dubai is an international trade hub. There is a high level of education and medicine, as well as the most dynamic implementation of scientific achievements.
