Properties in Dubai for sale – Invest in real estate in the United Arab Emirates

Dubai has become an international real estate hotspot, with major architectural developments and ambitious projects springing up seemingly overnight. With the market still young and demand outstripping supply, the time has come for foreigners to invest in this vibrant and captivating city.

In March 2006, the Freehold Law was passed allowing foreigners to lease for 99 years or freehold land in designated areas. Freehold or leasing allows the foreign investor many advantages. Owners can sell or rent their property in Dubai if they wish. The investment potential is high, with high demand for short-term rentals and yields around 10 percent. Dubai does not tax income, including income from rental property. Plus there is no Capital Gains Tax. With Dubai’s population expected to double in the next five years, causing increased rental demand, a property purchased for rental purposes can be seen as a long-term income generating asset. Owners are not required to live in the United Arab Emirates and there are a number of local and international property management companies, including Colliers International, Cluttons, Asteco and JG Property Management, who can look after the property when the owners are away. Property can also be passed on as inheritance if specific procedures are followed.

Some of Dubai’s most popular real estate developments (many of which offer family-friendly gated communities with access to swimming pools and other residential amenities) include:

• The Springs – Offering 3-5 bedroom villas, located off Sheikh Zayed Road.
• The Meadows – Located near Dubai Media City, it consists of 3-7 bedroom two-story villas.
• Emirates Hills – An exclusive world-class development comprised of freehold villas located close to Dubai Media City and Emirates Golf Club.
• Arabian Ranches – A freehold community of villas and townhouses minutes from Dubai and Jebel Ali, but located in the desert, offering access to the Dubai Polo Club and Equestrian Center.
• Dubai Marina: offers luxury apartments and villas with sea views.
• The Greens – Located close to the Emirates Golf Course and offering modern low-rise apartments available as studios, 1, 2 or 3 bedrooms.
• Other up-and-coming areas include: Business Bay, Palm Jumeirah, Jumeira Islands, Jumeira Park, Al Fujan and Dubai Land.

Investing in the dynamic and dynamic Dubai market is very simple. The only paper required is a relatively simple sales agreement. If necessary, foreigners can apply for financing. The two main lenders in Dubai, which specialize in property mortgages, are Tamweel and Amlak. When buying a property, it is advisable to use a lawyer and ensure that a formal contract is signed, especially if it is bought on the secondary market. It is possible and quite common to buy directly from the developer (such as Emaar or Nakheel) who may charge a transfer fee of between 1-3%. It is typical to have to provide a down payment, plus installments, with the final installment due upon completion or delivery of the property. Upon completion, the property must be registered with the Dubai Land Department. There is a land registration fee equal to 1.5% of the purchase price of the property. Homeowners should also expect to pay an annual property maintenance fee that covers things like necessary plumbing or electrical repairs, site cleaning, and security.

Buying a house abroad is an important decision. It is essential to research all aspects of a potential investment and only deal with trusted estate agents, as there is no formal structured buying process in Dubai. Well-known reputable real estate agents in Dubai include Better Homes, GoWealthy, Re-Max and Landmark Properties. The Dubai real estate market is likely to continue to flourish for the foreseeable future. Dubai is an international driving destination that offers a high standard of living, a tax-free lifestyle and a safe and secure cosmopolitan community, making it the perfect place to invest.