It is difficult to overlook why Dubai is a refuge for real estate investment given its constantly expanding population and the thousands of foreign workers who go there every year to further their careers in a secure, international commercial hub.
After the eagerly anticipated foreign property ownership decree was issued in 2002 and permitted non-UAE nationals to purchase real estate in Dubai, the city saw a significant development boom that attracted international investors to the real estate market.
Whether looking to buy a long-term investment or a property that is ready to move into, Dubai has a lot of housing-related investment options available today.
Highly Controlled Sector:
A system of real estate rules and regulations that safeguard the rights of real estate investors control real estate investment in Dubai.
The Dubai Land Department:
The Dubai Land Department (DLD) approves, arranges, and records transactions pertaining to registered land and real estate in Dubai. It also manages all issues pertaining to the registration of land sales and acquisitions.
In the real estate industry, the DLD currently provides more than 26 primary services and 216 auxiliary services to clients. These services include land and title registration, real estate professional registration and licensing, and the creation of regulatory frameworks to draw in and efficiently manage real estate investments while educating the public about relevant laws.
In order to help investors stay up to date with Dubai real estate prices, the DLD also gathers and posts information regarding real estate buy and sale transactions on a weekly and monthly basis on its website.
The Regulatory Arm of Real Estate Registration Agency (RERA):
The Real Estate Regulatory Agency, also referred to as “RERA,” was founded in 2007 with the goal of creating an environment that is conducive to safeguards the interests of all parties engaged in the marketplace for real estate with regard to investment. It does this by establishing legal frameworks and procedures and by regulating the operations of brokerage and development companies as well as owners associations. The agency bases its goals on international best practises.
To safeguard the larger interests of investors and the market, RERA keeps an eye on all development initiatives from a technical and financial standpoint. Along with enforcing fines for infractions, such as the termination of delayed projects, RERA actively monitors the adherence to relevant rules and regulations by developers, brokers, and other licensed real estate professionals.
Investment Arm of the Real Estate Investment Management and Promotion Centre:
The DLD’s investment branch, the Real Estate Investment Management and Promotion Centre, is in charge of assisting domestic and international real estate investment firms, creating a real estate investment-friendly regulatory framework, and stimulating market activity by encouraging direct and long-term investments.
In order to achieve sustainable development, it also actively contributes to the creation of a green economy and a stable and secure environment.
Do you want to make a real estate investment in Dubai? Recognise your rights
Current Residency:
According to investment-friendly visa programmes available to people who choose to invest in residential properties worth AED 1 million or more, with a maximum of 50% of the property value under mortgage, investors in residential properties in Dubai are granted a shortcut to permanent residency in the city.
Members may apply if their respective shares of jointly held assets are worth at least AED 1 million.
Commercial properties are not allowed; only a single residence may be invested in. Furthermore, only freehold residential properties are eligible for the visa. Applying for this visa with an off-plan property is not feasible.
The duration of the visa is three to five years, and it can be extended as long as the investor has real estate in the nation.
Those who have spent at least AED 1 million on real estate can apply for the three-year visa. The five-year visa, on the other hand, necessitates property ownership worth at least AED 5 million.
Attractive Rental Yields:
Investing in properties for rental purposes can provide substantial profits, as rents continue to be a popular option for purchasers seeking stable investments with appealing property pricing and payment schedules, among other factors. For ready homes, buy-to-let investors in Dubai may anticipate a return of 5% to 6%.
By purchasing an apartment or villa and renting it out on a short-term basis—a decision that is becoming more and more popular among travellers seeking a “homely” and genuine vacation experience—investors may also profit from the strong demand for short-term rentals and capitalise on the significant volume of visitors who visit the city.
Scheme of Rent-to-Own (Ijarah):
A developer and buyer can work up a rent-to-own agreement that lets the buyer make rent payments and save for a down payment at the same time. Since DLD introduced the rent-to-own service and created a special title deed record to offer a clear legal foundation to support such transactions, the plan has grown in popularity.
This agreement facilitates speedier entry into the real estate market for purchasers by relieving them of the burden of a required 25% down payment. In a win-win arrangement, developers also get access to a larger group of purchasers who would not be able to make the sizable down payment.
Advantageous Tax Situation:
Dubai’s tax structure, which is renowned for its low tax rate applied to real estate investments, does not exclude the real estate industry. Real estate investors in Dubai make the most money without having to pay stamp duty or purchase property taxes.
Popular Places for All Lifestyles:
In Dubai real estate, location is still a crucial factor that may significantly impact the return on investment, whether it is next to a beach, in the heart of the city, or isolated in a serene desert.
When evaluating the market, one should also take into account other aspects including size, quality, cost of upkeep, interest rates, accessibility to transportation and schools, and market circumstances at the time of purchase.
Desirable and Safe:
In addition to being a major financial hub and hub for international trade, Dubai is home to over 200 different nationalities, with over 80% of its population being made up of foreign workers and expatriates. This makes Dubai a true melting pot where anyone is welcome to call the city home.
With happy communities prospering in a peaceful civic environment, Dubai is one of the safest and most tolerant cities in the world; therefore your investment is secure there.
One of the main reasons Dubai is the ideal location to launch and expand your business is the widespread trust that the city, market, and economy have on a worldwide scale.
