Buying or renting a property in Dubai is like a dream comes true for many of us on account of the rising demand, lavish lifestyle, tax-free property, and many other reasons. That is why the UAE has the largest and strongest real estate market, with hundreds of expats investing every year. The yearly statistics surge every year, and the reason for people buying Dubai and Abu Dhabi property for sale is not nugatory. The rising demand for real estate in emirates, high-profit margin, and strong growth expected according to the latest insights and trends make property investment a great option for real estate investors and ensure higher ROI in the future.
. Violation will make you end up in prison or entail heavy penalties. As plenty of national and international buyers are showing interest in the real estate market, the growth chances are on rise providing high rental yields that are flogging the real estate market from strength to strength.
Having said that, if you are planning to be a part of Dubai real estate, below are some important factors every investor should know of. Let’s delve deep into these factors:
1.Off-Plan Or Ready Property
Dubai real estate offers property in two variations that are off-plan properties and ready properties. Off-plan properties are new or under construction properties. As they are not ready, off-plan properties have comparatively affordable rates and flexible payment plans. Furthermore, as the value of the property increases with time, it provides high rental yields when the time comes. To buy off-plan property, you just have to pay a 12% to 25% payment to the developer to start the paperwork, and the procedure does not take much time to complete. Remember that the percentage may vary for every developer.
On the other hand, ready properties are ready to shift. You do not have to wait. After finalizing the purchase. Just pack your stuff and shift to your new home. However, ready properties are expensive.
2.Freehold Or Leasehold Property
To bridge the property crisis after the pandemic, Dubai now offers freehold properties for foreigners to increase sales and attract potential buyers from around the world. Before buying property in emirates, expats must know the difference between freehold and leasehold property to make the right choice.
Freehold property gives complete ownership of the property to foreigners after purchase. There are specified freehold zones in Dubai, and foreigners can buy freehold properties only from these designated areas.
In contrast, leasehold properties give ownership for a specific time period, and once the time is completed, ownership rights are reversed to the previous owner.
3.Renting Properties In Dubai
Research is important when renting a property in Dubai. In addition, you must also consider short-term and long-term contracts. Short-term contracts are for 90 days, and long-term contracts are for up to six months. Also, the areas matter as well. For tourists and couples, downtown Dubai is considered to be a good option to rent an apartment. However, Arabian Ranch and Palm Jumeirah are considered to be ideal options for families.
4.Fee And Cost To Buy Property
Bear in mind that the money given to the developer at the time of purchase is not the only cost you will bear for property purchases in Dubai and Abu Dhabi. The transfer fee, mortgage fee, and DLD fee are also needed to be taken note of. One of the biggest advantages Dubai’s real estate market has over other global metropolitans like London is that the emirate offers tax-free property.
5.Operational Cost
When searching the properties for rent and purchase, do not forget to check the operational cost, which is maintenance cost and service charges. The cost varies according to the property you purchase.
6.Work With A Licensed Broker
To protect the rights and investment, make sure to work with the brokers licensed by RERA. Furthermore, as the buying procedure in emirates is daunting and those purchasing for the first time can face many problems, hiring a broker can guide you through the way and help to find properties considering your interests. Check out this link to have a general idea about the property options for rent and their rates.
The Takeaway
The modern architecture, unparalleled lifestyle, tourist interest, and endless business opportunities attract real estate investors and end users to invest in Dubai. Consider the aforementioned factors for a smooth purchasing procedure and higher growth chances.
READ MORE: Know about the interest on personal loan
