Real Estate Market in Dubai

The Ins and Outs of the Real Estate Market in Dubai

The real estate market in Dubai is always being faced with more interest and more demand from investors looking to purchase properties in this smart, highly industrialised city, that offers comfortable living conditions for individuals and families alike. Be it a house, villa, apartment, or any other form of property, and regardless of the area, whether in downtown Dubai neighbourhood, or in other popular neighbourhoods like Emirate Hills, Palm Jumeirah, Jumeirah Bay, or the many other places, investing in real estate in Dubai always has a stable, unwavering demand.

Dubai’s property market never fails to deliver to investors everything they could look for in a property. The city makes a great place for living with its high standard, developed infrastructure, beautiful scenery and tourist destinations, and many other factors. The economy of Dubai is also an important factor that makes the city attractive to investors, as they will surely have their needs met, without having to bury themselves in a lifetime debt.

However, it is always important for anyone who is thinking about investing in real estate in Dubai to know all the ins and outs, and all the possible outcomes of this decision, as such investment is, most often than not, a long-term investment.

The Pros of Investing in the Real Estate Market in Dubai

The benefits of purchasing property in Dubai are many; below are some of the most important advantages compiled in a list:

Residence Visa

If you happen to purchase a real estate property worth AED 1 million in Dubai, while ensuring that it is not under a mortgage, you will be eligible for an investor visa. Your investor visa allows you to get a two-year residence visa. And if your property is worth AED 5 million, or more, you will be eligible for a five-year residence visa; a 10-year residence visa requires purchasing a property worth AED 10 million, with the condition of not selling it for at least three years.

Stable Economy

Dubai’s economy is steadily growing at a stable pace. One reason for this is the political stability and peaceful environment, making it a comfortable place to live and invest in. and even though investors, citizens or expats, may prefer to invest in low-priced property to break even or get a run for their money, this is not the only right way to do so. Any investment in Dubai’s real estate market counts.

And over the past few years, and decades, Dubai’s economy has proven to be unshakable when faced with economic challenges. So if you are worried about economic stability in the real estate market in Dubai, rest assured about this aspect.

Safety and Security

Not only is Dubai safe from outside dangers when it comes to the political situation, but it is also safe on the local level; despite it being a highly industrialized city, the crime rate in Dubai is relatively very low. This makes purchasing property, and living in Dubai, such a comforting idea. What’s better than knowing that your family and kids are safe to go out and move around with little to no worries of safety?

Dubai’s law is very strict about safety; as a consequence, crimes like theft, robbery, and whatnot, are very rare, and in the event of such incidents, the guilty are easy to detect with the high-tech gadgets especially designed for this purpose. Additionally, the rate of road accidents in Dubai is also relatively low, taking away the worry of driving around the city.

No Taxes

After having purchased your property in Dubai, and having paid the registration fee for Dubai’s Department of Land, that is the extent of it; you will not be required to pay any property tax to the government. In the case of purchasing a house in other highly industrialized cities, like New York, you would have to pay regular property taxes. In Dubai, though, no such recurring payable tax is required upon purchasing a house.

Renovations and Developments

Despite Dubai being one of the most advanced cities in the world in this time and age, the developments did not stop there. Dubai is constantly doing renovations and aiming for more advancement, on its way to becoming the “smartest city” in the whole world. An example of this is Dubai’s government’s plan to build a tower taller than Burj Khalifa, which is already the tallest tower in the whole world.

Investing in the real estate market in Dubai means that you become part of this never-ending advancement. This rapid pace of new additions to the city will introduce better infrastructure, more convenient transportation options, new shopping malls, and resorts, and many more innovations.

The Cons of Investing in the Real Estate Market in Dubai

Despite the pros considerably outweighing the cons, it is still important to be aware of both the advantages, and the drawbacks of investing in real estate in Dubai to be able to make a well-informed decision.

Residence Visa Is the Extent of it

A 10-year residence visa is the best you can get out of investing in real estate in Dubai; there is no possibility of gaining a UAE citizenship. However, the residence visa is renewable.

Additional Costs

While there are no regular payable taxes on property in Dubai, you should be aware that when you purchase property directly from the developer, the Department of Land in Dubai requires you to pay 4% of the value of the property, as well as fees for registration, Title Deed issuance, and all are to be paid in advance.

Cost of Living

The living expenses in Dubai can be higher than many other cities, making it relatively hard to save money while also trying to live a luxurious life. However, the impeccable living conditions are worth the money paid. And while it may be hard to find a job at first, when you do end up finding a good job, and with good financial skills, you can balance between living the bets life you wish for, and saving extra money for the future.

The Verdict

As an investor interested in the real estate market in Dubai, you should not rush into making your decision. It is important to make your thorough research and to get the help and advice of a real estate agent, specialized in Dubai’s real estate. Your agent will help you weigh your options, based on your needs, budget, and other factors.

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