During the pandemic the UAE looked like a secluded place of calm and safety. In the current unstable world`s situation, the feeling of tranquillity is still present in the country. Foreign investors are eager to buy property in Dubai in 2023 because they foresee the high profit and a sound number of benefits. So, what are the profits? Do they really outweigh the hidden pitfalls? Let`s find it out.
Profits of real estate in Dubai
Buying a villa or an apartment in Dubai, the UAE is a great investment. Full ownership of property in the emirate gives complete freedom to its management. An owner can live there, sell or rent it out. All the ways are reasonable and will become a pleasant experience.
To understand the key profits, we need to identify what attracts foreign investors to the sphere of real estate in Dubai.
Warm sea and sunny beaches
365 days of sunshine a year, the sea, a huge range of entertainment – all this is Dubai. If you buy a house for yourself there is always the possibility to come on vacation and not to search for hotels. If you buy for rent, you will never have problems with finding tenants.
High return on investment
Returns on investment in real estate in the UAE are estimated at 5-10% per annum depending on the type and prestige of the property.
Issuing a residency visa
Buying a residential property in the UAE worth from AED750,000 gives you the opportunity to get a residency visa for a period of 3 years. Together with residency status, you will receive most of the benefits of UAE citizenship. You will be able to get a UAE driving license, place your children in local schools, get a loan from a local bank, etc.
Favourable geographical location
UAE officials like to point out that one-third of the world’s population is 4.5 hours away from Dubai. And it’s true. Dubai International Airport is the busiest in the world. The UAE has world-class seaports such as Jebel Ali, Rashid and Al Hamriyah to transport cargo.
Absence of a language barrier
With 90% of Dubai’s population being expats, English is the main language of communication in the UAE. Even a basic knowledge of English is enough to feel confident in everyday life here. You don’t need to speak Arabic. And if you don’t know English at all, the UAE is a great place to learn it.
High quality of life reinforced by advanced infrastructure
Dubai has everything for you to enjoy life. Beautiful roads, all kinds and forms of leisure activities, excellent transportation, a large choice of schools for your children, developed e-commerce. All this contributes to the fact that more and more foreigners are seeking to move to the UAE.
In addition, Dubai has approved a development strategy until 2040, which suggests that the area of development of the emirate will increase by 1.5 times.
The hidden pitfalls of real estate in Dubai
No need to be blinded by an impressive list of benefits, any buyer should know about hidden issues in the process of purchase.
All homeowners must pay maintenance costs. The amount of payment may be set by the management company or the Home Owners Association (if formed). Payments include the cleaning of common areas, security of the building, garbage collection, and maintenance of infrastructure elements (parking, swimming pool, gym, etc.).
Yes, most of the taxes we are accustomed to in the UAE are absent. But there are fees for buying/selling real estate. Since 2013 there is a registration fee which must be paid upon entering into the sale/purchase transaction. It is 4% of the total value of the property. It may be divided proportionally between the seller and the buyer, or it may be paid in full by the buyer, depending on the terms of the transaction.
High cost of living
If you are considering Dubai as a place for permanent residence, it is worth keeping in mind the high costs in this city. All goods and services will cost more, sometimes several times over. Be sure to consider the high cost of education and medical services.
The bottom line
Real estate in Dubai is a standard of comfort. The high pace of construction in Dubai is not reflected in the quality of housing. Here they don’t build on the principle of “quick turn around, sell and forget. The multifunctional approach to each residential building is a perfect example of designing for human comfort.
It is also the main priority of the construction policy in the UAE. Only quality materials are used in the construction of new facilities. Therefore, the property chosen on the official website Emirates.Estate will bring delight and profit to the owner for a long time.