Why would someone buy property in Dubai?
The UAE has recently implemented a number of measures necessary to revive the economy, including easing the regulations governing conducting business outside of free zones. Bank lending limitations for real estate loans were loosen by 20%, and economic activity rose.
As we’ve previously said in other articles, nearly every major corporation in the globe has an office in Dubai, which has emerged as the UAE’s business hub. The investment sectors that have succeeded in drawing a sizable number of foreign investors to the UAE have grown as a result of the expansion of businesses and industries. In addition, the following factors make Dubai the unchallenged leader in terms of investment:
- no tax on income or capital gains
- getting a resident or investor visa with an unrestricted right of extension
- legal protection for a property and potential for future investment opportunities
- Any person or foreign firm will not be subject to double taxation if they have a certificate proving they are a tax resident of the UAE. This choice is only viable if the investor’s nation and the UAE sign this agreement.
Dubai is renowned
Dubai is renowned for its outstanding districts and skyscrapers, distinctive luxury residential real estate, low crime rate, well developed infrastructure, and numerous other features. All of this makes Dubai the perfect destination for travelers as well as residents and workers. Additionally, the city’s political climate is rather secure, ensuring that your investments won’t suffer as a result of global unrest and instability.
N.B. Those who have invested more than AED 5 million in real estate in the UAE are eligible for the Central Bank of the UAE’s perks in addition to the streamlined visa application process. In addition, they benefited from low housing costs, particularly after they were reduced. Government fees and the cost of annual rent for commercial real estate have also been reduced in light of the pandemic.
Given the aforementioned, it should come as no surprise that a lot of locals and first-time investors with an average salary wish to invest in real estate to safeguard their future.
In Dubai, buying real estate involves only a few requirements. They might, however, be different from what the investor already knows. To assist you with the procedure, it is a smart idea to work with a respected real estate agent and a lawyer. They ought to assist with formulating the terms of the agreement between the purchaser and the offerer, signing an official Agreement, taking care of the compensation and state fees, or transferring ownership documents.
Prior to the global financial crisis and in light of the pandemic, the UAE government’s policy was centered on luring investors to the real estate market. Customers are offered two mortgages to pay for one residential property at low interest rates on the first loan, notwithstanding the affordability of real estate acquisition costs. In addition, the payment period ranges from 50 to 100 years with the option of deferring repayment to succeeding generations. It has an impact on the residential real estate’s strength and quality.
It is important to note that banks help keep the real estate market stable and that there is competition on the UAE mortgage market for expats. Even while many buyers employ bank loans with long-term rates, lower loan interest rates and steady real estate revenue both contribute to the increase of demand.
If you need a mortgage, speak with a mortgage advisor and ensure that your loan application has already received pre-approval from your neighborhood bank. Expats must put down a minimum of 25% of the house cost plus an additional 6-7% for related costs. The maximum loan-to-value ratio will drop to 65% if you wish to buy a home worth more than AED 5 million. You will thus require a 35% deposit.
You will be able to establish your budget once the mortgage has been pre-approved and the mortgage broker or bank has gone over the available options with you to determine your maximum eligibility for the loan. About 25% of your monthly income is typically spent on mortgage payments. You must, however, be careful to obtain the appropriate loan amount for your requirements and financial capacity.