Dubai opened its real estate market to non-Emirates in 2002, and this decision attracted a lot of attention from investors around the world. These things make people want to go to Dubai, but what makes them want to go isn’t clear. And this is what most foreign investors and people who live in Dubai want to do: buy a home there.
Foreigners and expatriates can buy homes for sale in Dubai in areas that are freehold or leasehold. They can get freehold ownership rights without any restrictions, or they can get leasehold rights for up to 99 years, too.
What draws foreigners to the Dubai real estate market?
Dubai’s real estate market is always full of investment opportunities that promise to make money.
Another reason is that the country is peaceful, stable, and one of the safest places in the world to live.
The tax-free status of the UAE is a big reason why foreigners want to buy real estate there. Though Value Added Tax (VAT) was added in 2008, residential properties in Dubai are still tax-free. Dubai’s residential properties are either taxed at zero or not at all. People who own commercial properties have to pay a 5% VAT.
Another great reason for expats and foreign investors to buy homes in Dubai is to get a residential visa. Anyone who invests at least AED 1 million in a completed freehold property with a valid title deed can get a visa to live in the UAE.
There has been a big rise in the number of properties available to foreigners over time. Despite the COVID-19 lockdown, there are a lot of apartments, villas, and townhouses for sale in Dubai’s real estate market.
How do I buy a house in Dubai?
When you learn about the benefits of owning a home in Dubai, you may decide to give it a try. Buying a home is always scary, especially when you’re doing it for the first time and in a new country.
In the beginning, buying a home in Dubai may seem complicated. Legislating bodies and the Dubai Land Department have worked hard to make the process quick, smooth, and easy.
People from other countries who want to buy real estate in Dubai must have valid passports, work with a registered real estate agency in Dubai, or directly with a developer to find what they want and complete all the paperwork.
The government is trying to get foreign investors to buy property in the U.S. The government of the UAE places a lot of importance on foreign investment in the real estate sector, so it is always working to make homeownership more appealing to people who want to buy. As an example,
- Investors can get a three-year visa renewed for another three years if they buy a home worth more than $1 million.
- If the home is worth more than AED 5 million, the visa is renewable for five years.
- If you buy a home in Dubai for more than AED 2 million, you can get a five-year visa that can be renewed.
- Real estate developers also develop new ways to make their projects more appealing to foreign investors.
How do you choose a home in Dubai?
As a foreign investor or expat, you can choose from a wide range of properties, different places, and a wide range of developments. Before you begin searching for a job, think about a few things that will help you make the right choice:
Investigate the developer’s history and track record.
- Ensure that the agent you’re going to work with is registered with the official regulatory body.
- A foreigner should make sure that they can buy in the area and the development they want to buy a home in before they do.
- You should know how much you will have to pay at each transaction step and what other fees you will pay, like the agents and the transfer fees.
- Check if the property is being sold at a fair price by doing your research.
- Always try to get a better deal on the price the store wants.
- If you need a mortgage to buy a house in Dubai, get your loan approved first.
Before making any deal, get legal advice.
After you sign a contract, you must follow the terms of the agreement. Make sure you read the contract carefully.
If you have any issues, express them to the appropriate parties and have a discussion.
Tips for purchasing a Dubai property
When it arrives at buying a home in Dubai, real estate agents may ask about the reason for the purchase. Is it for investment or personal use? If you want to buy it for your use or rent it out in the future, think about the following stuff before you make a decision:
- Facilities in the area
- Size of the home
- Service fees
- The market situation
Even if you’re buying it for your use now, you might plan to rent it out in the future, so look at it from a tenant’s point of view.
Fees for buying real estate in Dubai
Dubai is known worldwide for having low taxes, but a specific cost/fee/tax comes with buying a home in Dubai. There are a lot of fees that you need to know about in advance. This will help you set your budget and determine how much money you have to spend.
A lot of documents are needed to buy a house in Dubai.
Having a real estate agent registered with RERA and who you can trust to buy a home in Dubai is very important. Based on your budget, needs, and investment goals, he can help you find an off-plan property, a ready-to-move townhouse, a villa, or an apartment. Anyone can buy a home in Dubai as long as the home is in an area that isn’t for residents of the United Arab Emirates. If you want to buy a house, you’ll need to do the following:
- The person must have a valid passport to do this.
- Proof of residency.
- Proof that you live where you say you do
- Income statements need to be backed up by salary slips or certificates.
- A bank statement to show that you can afford to buy the thing.