Why invest in Dubai?

The investment property market in Dubai presents rental yields that surpass those found in numerous established real estate markets. The average return on investment (ROI) in this region typically falls between 5% and 9%, largely due to property prices per square foot being considerably lower than in major global cities such as London, Hong Kong, and Paris. Consequently, Dubai emerges as an accessible destination for acquiring luxury real estate, particularly since there are no stamp duties or property taxes imposed.

To further entice investors, the Dubai Land Department (DLD) made a significant adjustment in September 2021 by lowering the minimum investment threshold required to qualify for a three-year residence visa from AED 1 million (approximately USD 272,000) to AED 750,000 (around USD 205,000). Holders of this visa are also granted the opportunity to sponsor their families, allowing them to bring their spouse and children to the country.

What is an off-plan property in Dubai?

Off-plan property in Dubai refers to real estate that is currently under construction, making it a favored choice among both end users and investors. This preference largely stems from the lower acquisition costs compared to completed units, along with the potential to resell the property prior to its completion, thereby achieving greater capital appreciation.

Additionally, most developers in Dubai require only a down payment of 5-10%, granting buyers immediate ownership rights. The remaining balance can be settled during the construction phase or upon completion, depending on the specific payment arrangement. Another advantage of investing in off-plan property is that it is newly built, featuring the latest advancements in technology, design, lifestyle amenities, and on-site facilities.

How to buy off-plan property in Dubai?

Initially, it is important to highlight that the real estate market in the UAE is accessible to all buyers. Consequently, a visa or Emirates ID is not necessary when purchasing off-plan property in Dubai; only a copy of your passport is required. It is advisable to engage a real estate agent who can provide comprehensive information regarding the available projects.

Once you have selected an appropriate property, you must secure the unit at the developer's sales office by signing the Sales and Purchase Agreement (SPA) and submitting a deposit. Subsequently, within 30 days of registration, you are required to pay a 4% fee along with the Oqood registration fee.

In accordance with the payment plan, you will need to adhere to the scheduled instalments until the property is officially handed over to you. Upon completion, you will make the final payment and receive the keys to your new property.

Is buying an off-plan a good idea in Dubai?

Off-plan properties represent a highly favorable choice for long-term investment. They are particularly effective for those seeking steady growth and future returns, allowing investors to capitalize on the burgeoning real estate market in Dubai.

What is the off-plan payment plan for property in Dubai?

Various flexible off-plan payment options for acquiring property in Dubai are available, including arrangements such as 80-20, 60-40, 70-30, and 50-50, as well as post-handover payment plans. These off-plan payment structures are categorized into two phases: the construction period and the handover stage.

How to invest in Dubai's real estate?

In the context of investing in the property market in the UAE, numerous individuals opt to establish a long-term income stream by becoming a landlord. It is important to highlight that residential real estate can yield returns on investment ranging from 5% to 12%, a figure that is significantly higher when compared to major cities in Europe.

How to buy an apartment in Dubai?

When evaluating the ideal location for purchasing an apartment in Dubai, several factors must be considered, such as infrastructure, public transportation accessibility, healthcare and educational facilities, among others. Notable family-oriented communities in Dubai include Dubai Hills Estate, Al Barari, and DAMAC Hills, all of which feature spacious villas nestled within lush green surroundings and are enhanced by a wide range of shared amenities.

These amenities encompass, but are not limited to, fitness centers, landscaped gardens, swimming pools, barbecue areas, and multi-sport courts. Acquiring a villa in Dubai presents a highly appealing investment opportunity, as it can serve as a personal residence for you and your family, be rented out, or be resold in the future. As of 2024, the property market in Dubai is experiencing an increase in demand for townhouses and villas, as prospective buyers and tenants are seeking larger living spaces in response to the rise of remote work and education.

Can foriegners buy property in Dubai?

Non-residents are permitted to buy real estate in Dubai exclusively in designated 'freehold' zones. Both foreign individuals, who do not reside in the UAE, and expatriates can obtain freehold ownership rights for properties in these areas without limitations, or leasehold rights for a duration of up to 99 years.

The Dubai Land Department is responsible for issuing title deeds, and there are no age restrictions regarding property ownership in the emirate. Notable freehold locations in Dubai encompass Downtown Dubai, Business Bay, Dubai Creek Harbour, Dubai Investment Park, DAMAC Hills, Palm Jumeirah Island, among others.

Are properties in Dubai affordable?

The emirate of Dubai presents a diverse range of real estate options available for purchase across various price segments, catering to both budget-conscious investors and those seeking luxury properties. The location of a property significantly impacts its price. The most economical locations for purchasing an apartment within the emirate include Dubai Production City and International City, whereas more affordable townhouses can be found in the neighborhoods of Serena and NSHAMA Town Square. For those interested in villas at lower price points, Al Warsan, DAMAC Hills (AKOYA Oxygen), and Serena by Dubai Properties are notable areas to consider.

Where can expats buy property in Dubai?

Expatriates and foreign nationals are permitted to acquire property solely within the freehold areas of Dubai. When investing in real estate located in these specifically designated zones, owners have the liberty to utilize the property as they see fit, whether for personal enjoyment or investment purposes. This includes options such as reselling the property, renting it out, gifting it, or bequeathing it through inheritance. Notable freehold areas in Dubai include Meydan City, Emirates Hills, Downtown Dubai, Dubai Hills, Al Barari, and Dubai Creek Harbour, among others.

Is it worth buying a property in Dubai?

Acquiring real estate in the emirate of Dubai presents numerous benefits. Notably, Dubai boasts high rental yields, typically ranging from 5% to 9%. Additionally, the cost of real estate per square foot in Dubai is comparatively lower than in many other major global cities, rendering it an attractive option for those seeking to invest in premium properties.

Investors who purchase real estate in the emirate for a minimum of AED 750,000 (USD 204,000) are eligible to apply for a three-year investor visa. Furthermore, those who invest AED 2,000,000 (USD 545,000) or more can qualify for a five-year UAE Golden Visa. Property owners in Dubai also enjoy advantageous tax conditions, including the absence of property taxes and stamp duties.

Can I live in Dubai permanently?

In 2019, the government of the United Arab Emirates introduced the Golden Visa program, which offers long-term residence visas valid for either five or ten years. These visas are eligible for automatic renewal, contingent upon adherence to all regulations. Under this new framework, foreign nationals are permitted to reside, study, and work in the UAE without the necessity of a local sponsor, and they are also entitled to full ownership of businesses on the mainland.

Eligibility for the Golden Visa is limited to specific categories, including investors, entrepreneurs, students demonstrating exceptional scientific potential, as well as individuals with specialized skills and researchers across various scientific and academic disciplines.