Dubai is known for its high standards of living and dynamic property market. This city attracts investors with its favourable offers and investment opportunities. Buying property in Dubai can be a great investment for those looking to relocate and for those looking for a profitable investment.
What Properties The Market Offers
The Dubai property market offers a wide range of properties, from commercial spaces to residential homes. Investors and prospective residents can choose between flats, villas, and short-term rental properties such as Airbnb apartments.
Exclusive penthouses with city or sea views are also available, which are particularly popular with foreign investors. Dubai’s property portfolio also includes specialised properties such as retail and office centres, making its market extremely diverse and attractive to a wide range of buyers.
Property Selection Criteria
When choosing a property, it is important to decide on the purpose of the purchase: whether the property is needed for personal residence, investment or rental income. This will determine priorities such as location, type of property and value.
It is also important to consider the potential for property value growth in the chosen area and the availability of developed infrastructure. Below is a list of the main criteria to consider when choosing a property:
- Location: proximity to key transport hubs, shopping centres, schools and medical facilities.
- Property type: apartments, villas, commercial property or plots of land.
- Intended use: for own residence, short term rental or long term investment.
- Budget: Property value and additional costs such as taxes, utilities and maintenance.
- Legal status: check that the property is legally clean and has all the necessary documents.
Advantages of Buying Under Construction
Buying a property under construction (off-plan) often offers the best price and investment potential until construction is complete. Developers offer favourable payment terms, including interest-free instalments for up to five years.
In addition, buyers can choose from a wider range of available properties and can often customise the design or finish of their apartments. This allows them to personalise the property to their own taste before it is built.
Also, by buying a property at an early stage, investors can expect a significant increase in the value of the property by the time it is completed.
Ready-Made Property: Pros and Cons
Buying a ready-made property gives buyers the opportunity to move in straight away or start earning rental income. It also simplifies the process of obtaining mortgages and other financial services, as banks are more likely to lend against existing properties.
On the other hand, ready-made properties can be more expensive than properties under construction, and the choice of properties may be limited by current offers on the market.
In addition, buyers need to consider the possible additional costs of renovation and modernisation of older buildings, which can significantly increase the total cost of investment.
Financing and Mortgages
Mortgage for non-residents:
In Dubai, non-residents can obtain a mortgage covering up to 60% of the property value. Document requirements are minimal: passport and bank statement for the last six months.
Cost and terms of obtaining a mortgage:
Mortgage fees and commissions include 4% of the property’s value, charged for the registration of the transaction. Application and approval usually takes up to one week.
Property Registration and Legal Protection
Buying through a company:
For asset protection, you can buy property through a Dubai registered company. This provides additional anonymity and protection from legal claims.
Privacy legislation:
Dubai offers a high level of privacy for property owners. Company and property registrations are protected from public access, ensuring investors’ privacy is protected.
Investment Potential of Different Districts
Neighbourhoods with high rental yields:
Neighbourhoods such as Dubai Marina and Downtown Dubai are attractive for short-term rentals. New neighbourhoods such as Business Bay and Dubai Creek also show good investment prospects. These locations are popular with tourists and business travellers, which ensures high demand for rental flats and flats.
Neighbourhoods for long-term investment:
For those looking for long-term investment and privacy, neighbourhoods with villas and townhouses, such as Dubai Hills or Arabian Ranches, offer good investment and high demand in the market. These neighbourhoods offer privacy and a high standard of living, making them particularly attractive to families and those looking for a tranquil and luxurious environment.
Conclusion
Investing in Dubai property offers many opportunities for investors of different categories. It is important to choose properties carefully, taking into account your purchase objectives and financial capabilities. The Dubai market is a dynamic one, and with the right approach, you can make significant progress along the way.