Dubai is a city having most of the tallest buildings in the world. The countless towering skyscrapers in this city have always been fascinating for people.
Facts about Dubai Real Estate Industry
The modern and refined architecture here has attracted both the tourists and locals and any lines we can put down here won’t even come close to expressing the utter wonderment experienced by people while looking at this city.
The lights, vibrance and the entire feel of this city have been known to be an incomparable experience for many visitors and many people choose to settle here for such very reasons. Yes, despite the hot weather.
But when it comes to the real estate situation in Dubai, there’s more than what meets the eye. The world of real estate has some well hidden and pretty much unknown facts as much as you may think you know it.
It is always a good idea to know these things and it can also be advantageous to be informed in this field before you make a fixed decision to purchase a property in Dubai. Here we will take you through a few of those facts with 10 listed points.
1. Who Can Purchase Dubai Property?
Purchasing an asset in this city used to be a pretty complex process for foreign buyers and investors. The government didn’t allow foreigners to purchase the freehold of Dubai properties in the past years.
But since the interest of foreign investors in the Dubai Real Estate grew, the Crown Prince of Dubai announced a new Dubai property law enabling foreigners to freehold leases of Dubai property for an unlimited period. They are permitted to apply for 10 to 99 years leases in certain areas.
The nature of these freehold rights is pretty much like property ownership rights in other nations. Foreigners obtaining freehold rights can utilize their assets forever. They can also transfer their rights to another person after going through specific legal procedures.
2. Registration of Interests, Rights, and Transactions
All of the dispositions concerning off-plan properties of a property developer need to be registered. This is completed at the Interim Register, which is regulated and maintained by Dubai’s Land Department. All finalized properties and dispositions have to be registered in the Register, which is also controlled by Dubai’s Land Department.
3. Legal Fees
There are fees such as NOC Fees, Annual Service Charges, Agent commission, and Mortgage registration, all of which apply for purchasing and the sale of real estate property or land in Dubai.
4. Dubai Profits Better ROI Than Most Metro Cities In The World
Due to the presence of modernistic facilities and amenities, Dubai is, at present, one of the most desired places to invest in property. The absence of property tax only adds to making this city a hotbed for real estate investment.
The rental returns in property here also come under the highest in the world. The rate in Dubai goes up to 10% while Singapore, Hong Kong, and London are offering a rental return of about 3%, attracting more investors to this city.
5. Buying Property In Dubai Makes You Eligible For A Resident Visa
You become eligible for a resident visa if you own a property in Dubai. The UAE has always been known for opening its doors to millions of people that range across a host of diverse cultures.
Gaining a Resident Visa is followed by tons of benefits as it is primarily a 10-year visa. The process is also quite hassle-free and particularly efficient while the complete process lasts not more than a couple of weeks.
6. Real Estate Law Number Seven
This Law was passed by the Estate Government of Dubai in 2006. It focuses on reducing the restriction on foreigners related to property ownership in Dubai.
As we mentioned in our #1 point, the UAE estate laws used to forbid foreigners from holding ownership of building properties and lands in Dubai and this particular law brought all the necessary changes.
7. Rental Property Laws
For rental properties such as residential properties and apartments in Dubai, the tenant contract is mostly signed for one year if not it will be mentioned in the written contract.
It is not allowed for the landlords to increase rent. Rents can only be raised when the lease is finished and the renewal process occurs. Landlords are also not allowed to increase the rent by over 15%.
If there is any dispute between the renter and homeowner, a case needs to be filed with the municipality’s rent Control Committee. The panel will apprehend the dispute and conclude accordingly. Both the tenant and homeowner will have to respect the verdict made by the panel.
8. Inheritance Property Law
Compared to other Dubai property laws, this one is quite complex. If a deceased asset owner bears membership of another country then the inheritance law of UAE also contemplates the law of another country.
Deciding an inherited owner becomes more complicated if a homeowner bears dual citizenship of two nations other than the UAE. To assign the estate to the legal beneficiaries, a valid fulfilment of all the legal standards of UAE and Dubai is chiefly required.
9. Investment in the Construction Sector. First-time homeownership is encouraged
Developers are trying to attract more of Dubai’s renters to buy a property with the offer of fair post-payment plans.
Even though such a strategy helped in encouraging first-time buyers, government initiatives incorporating the new visa rules have caused renewed interest in foreign investors.
10. How Long Should ex-pats Stay to Sensibly Buy a Home?
It makes sense to buy a home here even if you plan to live in the UAE for just a year. As you can rent it out even if you are not living in it, and you get to earn a tidy profit despite the market going up and down.
In addition, you will always have a house to reside in while you are living in the country, this will save the money spent on rent costs. At just 4% for a flat rate, the Land Registry Tax is charged and whether you choose to live in that house or rent it out, there are no property taxes.