A powerful economy combined with the rapid technological development has brought Dubai to the level of the most prosperous cities in the world. A significant contribution to the financial well-being of the emirate was made by a powerful housing sector, which brings overseas investments in properties in Dubai and high profit margins. Emirates Estate will tell readers about the causes of the international success of Arab housing, about future opportunities and bright prospects that it opens up to real estate investors in the UAE.
Why Dubai Real Estate is so popular
Real estate in Dubai is one of the most profit-making sectors in the entire Arab country. The average cost of 1 sq. m. of living space here is 6 thousand US dollars. If you buy investment properties in Dubai with an area of 100 sq. m., in a popular area like Downtown Dubai or Jumeirah for 750-800 thousand US dollars, your profit will be from 8 to 15%.
In addition, there are several attractive aspects of property investment locally:
- Stable demand for both residential and commercial property in Dubai;
- High returns contribute to a quick payback;
- A comfortable investment environment in the emirate and in the UAE as a whole;
- No income taxes, including on rental income;
- A resident visa for housing investments amounting to 273 thousand US dollars or more;
- Unique zones of free ownership and “lifetime lease” (Freehold/Leasehold);
- A wide range of investment apartments in the Dubai secondary and primary housing markets;
- Availability of installments and mortgages for overseas citizens.
Several ways to earn money on property in Dubai, UAE
In 2021, deposits in Arab housing are more relevant than ever. The market is booming, as well as Arab developers and the state are doing their best to attract the attention of overseas investors. Moreover, a lot of favorable offers and interesting real estate for sale in Dubai, as well as big discounts on the luxury housing market – all this makes Dubai stand out not only against the background of other emirates in the UAE, but also against the background of other major cities in the world. Next, Emirates Estate will find the main ways to earn money on buying apartments in Dubai.
Dubai long rentals
Long rental in Dubai is one of the most common methods of doing successful business with profitable housing in the country. The lease agreement is concluded for at least a year. If the owner has transferred the right to operate his housing to a management company, the commission for the management of real estate is charged not from the owner, but from the tenant. Usually the commission does not exceed 5% of the rental amount.
All terms of accommodation and payment are included in the contract. In order for the owner to start renting an apartment in Dubai, the UAE, you will need the ownership for the property and the owner’s passport. It is unnecessary to come to Dubai to manage cash inflows. In this case, you can manipulate all the accounts remotely.
The landlord does not have the right to evict the tenant without prior notice (at least 90 days in advance) and without a significant reason. The same applies to the tenant.
The payment is made a year in advance, and the deposit is taken into account, or it is divided into several payments every month, or once every 3-4 months.
Dubai short rentals
During last years, short rentals have become very popular with both tenants and investors in the UAE. The former finds this type of rentals a more convenient and flexible way to rent a home, the latter – an opportunity to get a good profit in Arab apartments in Dubai. Thanks to a short lease, you can earn up to 15% per annum.
In order to start renting out real estate of the country, the owner must obtain a one-year license. Its cost is $600. It is also necessary to make a contract with a management company that will keep under review the maintenance of the property and look for guests. For their services, the management company usually retains 20% of the profit.
Investment in off-plan real estate in Dubai
Investing in new buildings is a contribution that you need to wait for payback. Many people will have concerns about the reliability of this method, but you should not worry. All the activities of construction companies in the Dubai housing market are strictly controlled by the state, and most of the developers on the market are state-owned. This means that their reliability is confirmed by years of hard work and successfully completed projects.
Buying an off-plan property for foreigners will cost about 100-150 thousand US dollars, while the market value of ready-made housing can (and will) exceed it several times.
This is a great way to make free money work, and developers often offer favorable conditions for buying a property in Dubai for expats in installments or a mortgage.
It is impossible to obtain a resident visa to invest in off-plan housing of the UAE, since the owner enters into his legal rights only after the housing is completed and put into operation.
Apartments for sale in Dubai
Buying real estate for sale in Dubai is a standard practice in the country. Many investors specifically buy a home on the secondary market, which required minimal repairs, in order to renovate it themselves and sell it at a good margin.
Another option is to wait a few years, resell the apartment and make a profit from the price difference. The cost of property in Dubai is increasing every year, which means that investors will be able to get a good profit.
Emirates.Estate will help you buy apartments in Dubai near the beach
Are you thinking about starting to invest in profitable flats in Dubai? Emirates.Estate will help you find the best option, according to your capabilities, preferences and taste. The website has the best residential properties from popular developers in Dubai, as well as from reliable owners. You can get detailed advice on issues of renting, buying apartments in Dubai for foreigners and making a profit from investment real estate from a specialist. If necessary, you can get full support when making a real estate deal from experienced lawyers.