When you have money for investment, real estate is often the first thing that comes to mind. Of course, there are alternatives, but equity supported by brick-and-mortar clearly wins on many counts. There is a lot of variety here, and many individuals are drawn to houses outside their native country, particularly resort-style residences with lots of sun and water.
Looking for a real estate investment opportunity? According to a Reuters survey of economists, housing prices in Dubai are rising for the first time in six years. This provides an incentive to purchase property in Dubai with the intention of later selling it. Learn how to invest in today’s ever-changing market, even if you are a new property investor.
Dubai is a worldwide commercial, business, and tourism centre. As more and more people move to cities, housing trends continue to rise. According to Interpol, it is a safe city with a very low crime rate. Furthermore, Dubai’s health infrastructure is advanced. As a consequence, most retirees in Dubai prefer to buy rather than rent an investment property. It is also getting more diversified in order to make all cultures feel welcome. It draws foreigners from a variety of communities. Furthermore, purchasing property in Dubai expedites the process of obtaining a residency permit there.
Homeownership
Non-residents are authorized to purchase property in selected regions of Dubai known as free investment zones. These places have a number of off-plan houses with attractive payment plans, and buying homes under construction appears to be one of the most economical and straightforward methods to enter the market. The strategy works as follows: the property is purchased for personal use and gains value over time.
Foreigners frequently purchase properties in Dubai to stay in for holidays or to do business. Some families purchase property in Dubai as a second or third home. After villas and townhouses, the majority of end-users prefer apartments.
Mortgage finance is an option for purchasing real estate. Non-residents may apply for a loan of 70-75% of the purchase price. One thing first-time purchasers should be aware of: banks may grant a larger loan amount than requested. The applicant should keep in mind that expensive premises need a lot of money in terms of insurance, upkeep, and service fees. Apartments in Dubai Marina, for example, were paid AED 14 per sq. ft., while in Downtown Dubai, the service cost went to AED 65-67.88 per sq. ft.
Investing in Rental Properties
Many people guarantee their security by earning “passive income” as landlords. The Dubai real estate market is ideal for this because, first, there is a huge demand for property leases, as around 95% of individuals living in Dubai are non-natives who come for work and must rent houses, and second, residential properties return between 5-12%. In comparison to EU capitals like Hong Kong, where 2.5% of rental return is considered standard, this is a solid ROI.
When investing in rental properties, one should be prepared to become a landlord – a person who performs a lot of work in addition to locating tenants, legalizing the lease agreement, and providing maintenance, repair, and restoration of any flaws and defects that emerge during use. Actually, that is a full-time job that not everyone can do in the long term, but any owner can employ rental property management. The issue with leaking faucets or broken locks will be resolved by a professional crew, and the owner will be pleased with the end result. The investors profit from collecting rent and from appreciation. If the property’s value rises, the owner may be able to sell it at a profit when the time comes.
