Dubai, the land of luxury and grandeur, has long been enticing investors with its promise of lucrative real estate opportunities. However, amidst the hype and allure of Dubai real estate investment, certain myths and misconceptions have clouded the true picture, deterring potential investors from making informed decisions. This blog aims to unravel these myths, shedding light on the realities of Dubai's real estate market and empowering you to make confident investment choices. Join us as we embark on a journey to demystify Dubai's real estate landscape and uncover the truth behind the common myths that often shroud it in mystery.
Truth: Foreigners are allowed to buy property in Dubai, both freehold and leasehold. There are no restrictions on who can buy property, as long as they have the necessary funds. This policy has attracted investors from all over the world, seeking to capitalize on Dubai's vibrant economy, world-class infrastructure, and luxurious lifestyle. Freehold ownership grants foreigners full ownership of the property and the land it is built on, allowing them to sell, rent, or inherit the property. Leasehold ownership, on the other hand, grants foreigners the right to use the property for a specified period, typically 99 years, thereby making an attractive proposition for Dubai real estate investment.
Truth: There are many affordable properties available in Dubai, starting from around AED 100,000 (USD 27,000). There are also many off-plan properties available, which can be purchased for a lower price than ready-to-move-in properties. First-time homebuyers and budget-conscious investors can find attractive options in various neighbourhoods across the city. Affordable Dubai real estate investment is thriving in; Dubai Silicon Oasis (DSO), International City, and Dubailand offer a mix of affordable studios and 1 & 2-bedroom apartments.
Truth: Contrary to common misconceptions, non-residents are not barred from securing mortgages in Dubai. While the process may involve additional steps and documentation compared to UAE Dubai Real Estate Investment, non-residents can still access financing to purchase property in the emirate. They are able to get mortgages in Dubai, subject to approval from the bank. The terms and conditions of the mortgage will vary depending on the bank and the individual's circumstances. Working foreign individuals must be employed full-time with a reputable company, while non-working foreign individuals may be approved if they have a strong financial background, such as a substantial savings account, a steady source of income from investments, or a history of property ownership.
Truth: Developing areas in Dubai can make for great Dubai real estate investment opportunities. These areas are often home to new infrastructure and amenities, which can make them more attractive to tenants. The developing pockets demand lower property prices than more established areas of the city, which makes it an attractive option for investors who are looking for a good return on their investment. Some of the most promising upcoming areas in Dubai are; Dubai South, Dubai Creek Harbour, and Dubai Investment Park.
Truth: Dubai Real Estate Investment is a city with a diverse range of neighbourhoods, from beachfront properties to golfing oases. The best location for you will depend on your individual preferences and lifestyle. The city is always bustling with modern shopping centres, jaw-dropping skyscrapers, and trendy landmarks.
Truth: The Dubai Real Estate Investment market has gone through some ups and downs in recent years, but it is not considered to be in a bubble. The market is supported by a number of factors, including a growing economy, a strong increase in population, and a favourable regulatory environment.
Truth: Dubai real estate investment does not impose residential property taxes; instead, a 4% municipal tax is applicable on property sales. Given the Dubai government's significant reliance on revenue from tourism and trade, introducing property taxes might discourage foreign investment and impact the tourism sector. Thus, investors can continue to benefit from the absence of residential property taxes in Dubai, enjoying a tax-friendly environment for property ownership.
Truth: The process of buying property in Dubai is relatively straightforward. There are a number of reputable real estate agents who can guide you through the process. Additionally, the Dubai Land Department facilitates a streamlined transaction process which is straightforward and swift.
Truth: It is always advisable to use a reputable real estate agent when seeking Dubai real estate investment. An agent can help you find the right property, negotiate the price, and handle all of the paperwork. Furthermore, a reputable real estate agent brings invaluable local market knowledge, ensuring you make informed decisions. They can also assist in navigating legal intricacies, providing a seamless experience from property selection to finalizing the transaction.
Truth: While Dubai's real estate market has experienced periods of change, it has demonstrated resilience and growth over time. The market is currently experiencing a surge in demand, driven by factors such as Expo 2020, the government's initiatives to attract foreign investors, and the city's growing popularity as a global business hub.