The real estate market in Dubai has seen an increase in the number of expats and foreign nationals who are interested to invest in the city. Several people are still unaware about the fact that they can own a freehold property in Dubai and it is not constraint to 99 years lease anymore. Investors in Dubai can now invest in freehold apartments, townhouses, villas and even mansions very easily. Furthermore, people looking to invest in commercial properties are also eligible to opt for freehold shops, offices and many more options. With the no taxation policy in Dubai, investors can be rest assured that property investment in Dubai can only provide them with ample amount of profits.
The biggest and the foremost attractive asset is that of the high rental yields that an investor in Dubai can bag in of upto 8%. To cut the long story short, every foreign expat is allowed to invest in UAE and can earn a handsome profit out of it too. In this article, we are furthermore going to talk about the advantages of investing in UAE:
What is the status of the Property Market in Dubai?
Everyone wondered if the pandemic had an adverse effect on the property market in Dubai, but it is not what you think happened. The investment market in UAE has been stable due to the drop in the market prices. The demand for residential properties with a larger space has only seen an increase. With the pandemic, people have realized the importance of social distancing and a larger space to be able to take good care of a bigger family. Let us walk you through the steps of how one can invest in a property in Dubai.
If you want to purchase property in Dubai, there are some steps involved. You can follow these to buy all off plan properties, freehold properties, and resale properties. So, let us see how you can fulfill your dream of owning property in Dubai.
- Look for an agent who can help you with property options
Finding the right agent for your property purchase in Dubai can be a task. You can always find the best experts at Azco Real Estate to help you with your leasing, freehold property purchase and a lot more.
- What kind of properties can an investor purchase?
Foreign investors prefer to purchase properties, such as villas, apartments, townhouses, plots of land, or commercial spaces that are in well-known and secure areas. They want leisure facilities in and around, for example, tennis courts, gyms, swimming pools, golf courts, malls, and more. Similarly, you need to determine which type of property is the ideal choice for you when you want to invest your money.
- Search Property Online
As for any property, the best place is to search online. There are several real estate agencies that list a range of properties on their portal. You can explore the ones in your preferred locations. The listed properties are both newly constructed and those available for resale. Developers may also sell properties that are still under construction.
- Contact Azco Real Estate for more details
If you need help with your property search and cannot decide the right choice for you, you can talk to real estate experts at Azco. They have expert knowledge about the real estate market in Dubai and can give you better financial advice. They can help you explore a range of options and invest in properties that have high value and ensure promising returns. Also, they are experienced in dealing with foreign buyers so they can understand your needs better. All this will help you make an informed decision. However, make sure they are registered under the regulatory body for Dubai- Real Estate Regulatory Agency (RERA).
- Am I eligible to invest in a property in Dubai?
To invest in Dubai, you need to have a passport to prove your identity to the government. You do not need to take any residency permits to buy the property unless you have an intention of staying there for a certain time. If you want to visit Dubai to investigate things before you invest your money, then you need a visa. The UAE government offers a six-month visa, called the “Property Holders Visa”. Moreover, to qualify for this, you must be an individual not an organization and buy property under a certain value.
- Understand the financial requirements
To buy property in Dubai, you must ensure that you have sufficient funds to invest and meet all the costs that are involved in the purchasing. The expenses include the deposit, transfer fees, real estate agent fees, legal advisor fees, and more. Taking help from a lawyer is not necessary but recommended getting help with all the paperwork and legal formalities.
- Apply for the mortgage or home loan
It can be difficult to obtain a mortgage in Dubai for purchasing property. Self-certification mortgages are not offered to the buyers and the amount of paperwork can be too much. However, you can get a loan from a financial institution as per the local laws by taking the help of a financial advisor. After obtaining the loan, you need to pay it back in monthly installments. Usually, the mortgages are raised for 15 to 25 years in the Dubai Property Market.
- Down-payment or paying the deposit
After finalizing the property and getting the loan, you are required to pay the deposit. The amount will be mentioned in a form, and it is usually between 5% and 15% of the property value. Developers do not drive sales and purchase agreements until you pay this deposit. While buying off-plan property, make sure that the payments you make are forwarded to a RERA- approved securities account. It is the real estate regulatory agency in Dubai that takes care of all the real estate investments. These payments are later transferred to the developer when the development of the property is completed.
- Signing the agreement & paying DLD
You need to sign the formal and legally binding sales and purchase agreement. DLD is a 4% land tax that is paid to the government for owning a property in Dubai. Several developers in Dubai offer discounts on the DLD too. The contract must include the purchase price and the date by which the property under construction will be completed, and what are the penalties that the developer will incur if the property is not handed over to the client on time. You can hire a local lawyer to check the contract for you along with all the details and basic terms and conditions.
- Get the deeds transferred to your name
To get everything done, you need to transfer the deeds. here you need to pay 100% of the purchase value of the property in Dubai. Until you transfer the deeds, you cannot own the property, so make sure to arrange the financing beforehand. You can inspect the property by visiting it to point out any issues that the developer should consider before finalizing the development.
Last but not the least, finding the Right Real Estate agency
The real estate market of Dubai is different from other countries so it is recommended to hire a real estate advisory firm who can guide you throughout the property buying process. Azco Real Estate is one of the reputed real estate advisory firms in Dubai that specializes in offering properties to investors in the most sought-after areas of Dubai. They offer an exclusive range of villas, apartments, plots and a lot more in Dubai that are ideal for foreign nationals. They can help you find the right property which could be either under development or available for resale. You can check out the ideal options as per your interests and book any one of your choice by simply paying an initial deposit or down payment to them.