Purchasing a property in the United Arab Emirates is an attractive option for many people, especially those looking for new ways to earn more money and conduct business abroad. Let Ax Capital housing company tell you more about how to make money regarding real estate in the UAE, the purchasing of villas in Dubai for investment, and what investment schemes exist in the country.
The content of the article:
- Earning money on real estate in the UAE
- Why Dubai?
- EXPO-2020
- Dubai's best areas for investment
- Housing types
- Benefits of villas and townhouses
- Mortgage
- Real estate maintenance
- How to choose a suitable property in the UAE
- Ax Capital will help you to purchase real estate in Dubai
Earning money on real estate in the UAE
For foreign investors, the most common reasons to purchase houses and villas in the UAE are as follows:
- A comfortable economic climate in which there are no taxes on income, property, and profit from the resale of real estate.
- The UAE's policy tries to attract foreign investments, so the state encourages investors and entrepreneurs. For this reason, the country has developed the "golden visa" program. According to this program, citizens from other countries can get an equivalent residence permit for a significant contribution to the UAE's economy and investments.
- A foreign investor has to wait for a resident visa from between 6 months to 10 years. Only then does(s)he become a resident of the UAE. Legally residing in the country and receiving all of the rights that indigenous residents have.
Why Dubai?
According to the facts, Abu Dhabi is the largest of the seven emirates. Yet, Dubai is the most developed and successful emirate, both economically and technologically. What’s more, in terms of real estate transactions, infrastructure, and well-being, Dubai is one of the best cities in the world to live in.
Since the end of 2022, the Arab housing sector has rapidly been recovering. Furthermore, it’s maintained this growth in dynamics throughout 2021.
According to the Dubai Land Department (DLD), the fourth quarter of 2020 displayed that the volume of housing transactions has increased by 25%. Moreover, the total number of registered deals amounted to 11,065, totaling AED 22.07 billion ($6 billion). So these figures were proof that Dubai's economy was stabilizing after the Covid-19 pandemic.
Similarly,2021 has kept with the trends of 2020. In the first quarter of 2021, more than 11,750 housing transactions worth AED 25.15 billion were concluded. This data is 6% higher when compared with figures of the previous year. Also, for the secondary real estate market, there’s been an increase of 16%. While conversely, housing sales in projects under construction decreased by 7%. Still, all this allows investors to earn money in the real estate market of the UAE.
EXPO-2020
The upcoming Expo-2020 exhibition is of interest to visitors who are looking to purchase Arab real estate. It will open in October this year and will be an event of epic proportions. It is estimated that Dubai will host more than 25 million guests from all around the world.
The exhibition complex includes several dozen thematic buildings, which will be built in the southern part of the emirate. The central building is shaped like a flower bud, which is a stylistically original design. Furthermore, each participating country will have its own building.
Dubai's best areas for investment
If Dubai acts as an investment destination, there are several of its most popular central districts. They are the best places not only for tourism but also for infrastructure development and permanent residents.
Here are some of the most attractive areas of the emirate both for investment and for living.
Dubai Marina
In terms of investment attractiveness, Dubai Marina ranks first among the most popular areas of the emirate. Its area is only two sq. km. Despite this though, there are a lot of skyscrapers in this area. In fact, there are two hundred skyscrapers built close by the sea here. The Dubai Marina also boasts many first-class restaurants and luxury hotels.
Downtown Dubai
Downtown Dubai is a cultural center and an attractive place to live. It’s only 2.5 sq. km in size, but despite this, it has plenty of high-rise buildings. Dubai Mall and the ultra-high skyscraper the Burj Khalifa are the largest ones. Living here is a dream come true that many people from all over the world dream of and that some eventually successfully realize.
What’s more, the townhouses in Dubai are among the most expensive because they combine luxury, prestige, and international quality.
Palm Jumeirah
The Palm Jumeirah is a man-made island and the embodiment of a brilliant engineering idea. Wealthy people who appreciate comfort and privacy choose this place to purchase villas and townhouses. What’s more, the island is ideal and has all the most appealing conditions such as the cleanest beaches, luxury hotels, and premium restaurants. Take note that most of the market here consists of villas.
Housing types
The diversity of the Arab real estate market surprises many people. Other reasons to buy property is stability and a high level of profitability. The most popular properties for buyers are:
- Studios
- Apartments
- Penthouses
- Duplex apartments
- Townhouses
- Villas
Benefits of villas and townhouses
The key advantage of villas and townhouses in the UAE is the atmosphere of privacy. Most of the properties of this type are located in the gated communities, such as DAMAC Hills and Arabian Ranches. These are usually luxury properties which feature playgrounds, pools, parking space, etc.
Another benefit is easy access to the key roads. Villa and townhouse communities are located in 35-40 minutes from the center of the emirate and the international airport. All this creates a peaceful environment without the hustle and bustle of a big city yet located in the central parts of Dubai.
These are the most popular reasons why tourists and expats prefer to rent housing in such communities.
Mortgage
UAE banks provide mortgage loans to foreigners. However, to receive a positive response, one must fulfill several requirements and meet the mandatory criteria. Otherwise, the banks will refuse to give you a loan.
- The first and most important requirement for the client is to be in a stable financial position. On the other hand, even if you meet this requirement, you still don’t have any guarantee that you will get a mortgage.
- The second requirement is to have a resident visa. Other requirements include the following:
- Provide an income certificate and an account statement for the last six months.
- Business owners must provide audit reports.
- The client's account must have at least AED 3,500 ($950) after the loan payment.
- Loan repayment should not exceed half of the income.
Non-residents can count on financing up to 70% of the cost. They must pay the remaining amount themselves. It is also important to remember that each bank offers individual conditions for both the borrower and his documents.
Real estate maintenance
Although there are no property taxes, foreign homeowners in Dubai must regularly pay for its maintenance, security, and cleaning of the surrounding property.
Utility bills are paid according to the meter readings. The total amount to pay depends on how much you consume. When it comes to villas, the maintenance costs also include:
- Cleaning of water tanks ($ 130 to $250 per year);
- Gardener (the cost depends on how much work they need to do);
- Pool cleaning (from $1,000 per year).
How to choose a suitable property in the UAE
When looking for a property, you should pay special attention to the most popular options in the local market. In 2021, the trend is spacious properties, such as villas and townhouses with a wide range of amenities. People trapped in apartments are now looking for comfortable housing by the sea. In Dubai, the most popular locations for buying villas are Dubai Marina, Palm Jumeirah and Downtown Dubai.
Ax Capital will help you to purchase real estate in Dubai
Find your dream villa now. Visit our website, Ax Capital, browse through the online catalog and choose from hundreds of housing optionsavailable from the top developers in Dubai. Feel secure in knowing that our company's experts/consultants will help you choose your ideal property by taking into account the financial aspects, as well as,ensure it includes everything you’ve ever dreamed of. Plus, our agents are also on standby and will find the best investment option for you. One that not only accompanies high profitability, but also a quick return upon investment.
