Over the past few years, Dubai's economy has proliferated in all the fields. The city has taken advantage of its contrasts, diversity, and geographical location. Having a remarkable evolution over the years, today the city is not just an international business destination but is also known as a cosmopolitan destination for shopping and entertainment.
The country is appealing to foreign investors because it provides an excellent opportunity to essential markets like Asia, Africa and the Middle-East and also because it has more excellent connectivity to other international business centres in America and Europe. If you want to set up business in Dubai it can reap heavy profit for you.
Before buying a property in Dubai, a particular should look after these following things.
Things to Look Out for Before Buying a Property
Once you are done with your primary purpose of buying property in Dubai, it is time to get down to researching different areas. Every property investor has a mental image of the community where they would like to buy a property. Investors should be cautious about the location of the property. There are many things you need to check like the security, crime rate. Generally, Dubai is a haven in the Middle East. It enjoys an excellent security system that uses exceptionally advanced techniques in ensuring order. Also, check the developer's track record. Today a lot of investors tend to deal with top real estate brands in Dubai like Emaar, Damac, and others since they offer the most significant credibility and professionalism in conducting work.
Freehold vs Leasehold
People who are not from the UAE (United Arab Emirates) and specifically, Dubai's real estate market, often get confused about the difference between freehold and leasehold areas. Making an informed decision while buying a property in Dubai demands one to understand the fundamental difference between these area distributions.
- Dubai Freehold Areas
There were times when foreign nationals could not buy property in Dubai. However, things started changing from the year 2000 onward and making for expats to purchase property in Dubai. The government of Dubai began to introduce new laws. Specific areas were given the status of freehold land, which means that anyone from any part of the world can buy real estate in those areas.
- Dubai Leasehold Areas
Leasehold areas, as the name also indicates the fields in Dubai where a particular cannot buy real estate, but he or she can lease land or property. Any property which is given one lease for more than ten years up to ninety-nine years is considered as a leasehold property.
Real Estate Finance in Dubai
Another crucial thing you need to know before buying property in Dubai is the real estate finance system in the Emirate. Financing services for property buyers is available. Hence, it is restricted only to companies and banks authorized by the United Arab Emirates Central Bank. In Dubai, most home loans are offered at a rate ranging between three to four per cent. To acquire a mortgage, the creditor must check the investor eligibility to test his financial capability of paying back the debt. This is determined through several factors like, the minimum length of service, minimum salary, the company which buys work for and many others.
Local vs Expats
Since a foreign national cannot acquire citizenship of the UAE by any means, the question may arise that are there different rules of locals and expats in Dubai for buying a property.
- Local Real Estate Investors in Dubai
Local Emirates can buy property anywhere in the UAE or Dubai. There is no such limitation of freehold or leasehold areas for them.
- Expats Real Estate Investors in Dubai
Expats can only buy Dubai property in designated communities, which are called freehold areas. Expats may lease a property for up to ninety-nine years in a leasehold area, but the ownership of that property will come back to the landlord at the end of the lease period.
Reason for Investment
A particular need to set up the mind before setting off the property in Dubai to define the purpose or the idea for buying. If you are looking for investment, then you should consult your agents as there are specific areas considered to be ideal for property investment. They are characterized by high rental value, many commercial centres and amenities surround high capital growth rate per year and them. If you are looking for a house to settle in Dubai, Then you must look for convenient areas suitable for yourself and your family requirements. First, you should check the locations of the best hospitals, schools, recreational centres and many others.
Purpose of Buying Property
The upcoming thing you need to decide is the purpose of buying a property, for personal use or for buying a property for investment.
Buying Property in Dubai for Personal Use
Dubai has become the centre of business and a second home to millions of expatriates from all over the world. In Dubai, properties were always considered as very expensive and out of reach for general expats who are blue-collar workers. However, things have evolved now, and many people who are working in Dubai are now inclined towards buying their property or renting one.
Look for the basic amenities then, near hospitals, schools, supermarkets and restaurants etc. that are near to the home.
Buying Property in Dubai for Investment
Since Dubai's real estate market is famous for many perks like no tax, secure and transparent producers, high rental yield, high capitalization of investment, and so on. Majority of people want to buy those properties in Dubai that can offer them a high return on investment.
Dubai carries very high prospects for its investors and residents; it's expanding at a high pace to double, even triple, its old urban size. The city is presently witnessing many large-scale infrastructure and real estate projects under construction like Al Maktoum International Airport, Dubai South city and many others. With more world-renowned events to be held in the town like Expo 2020, it's bound to experience considerable developments in the commercial, recreational and hospitality.
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