In recent years, buying property in Dubai has become increasingly popular, with ex-pats flocking to the country to either live or invest in a new property. From thriving infrastructure to a favourable tax system and foreign investment laws, Dubai is one of the best places to acquire property both for personal and business use.
With Dubai hosting the 2020 World Expo, it has further become an attractive destination for tourists from all over the world. Whether you are an ex-pat looking for a home in Dubai or an investor looking to diversify your portfolio, there are some things you need to know before you buy a house or apartment in Dubai.
Why do investors buy property in Dubai?
One of the main benefits of purchasing property in Dubai is that you don’t have to pay tax on your property, making it an investment that will see purchasers make a healthy ROI in a relatively short space of time.
In addition, purchasers don’t have to be citizens of Dubai to purchase property; they simply have to have a valid passport. If they invest more than one million dirhams in a freehold purchase, they will be granted a residential visa to allow them to come as they please.
However, although buying a property in Dubai is relatively straightforward compared to buying property in other countries, it’s essential that you seek the advice of someone that has experience in completing purchasing deals; otherwise, you could end up over-spending.
Types of ownership in Dubai
Freehold properties are most popular in Dubai. This means complete ownership of the property, allowing an individual to sell, rent or inherit the property. Expats and UAE nationals have access to freehold properties (residential and commercial) in a number of great locations.
One of the best things about freehold purchases is that the land is yours, and you have the freedom to make changes to your choosing (with the proper local legal approval).
Another standard type of property that you can buy in Dubai are the Commonhold, which, like freehold, gives you complete ownership of a property. However, commonhold involves purchasing the entire building rather than just one unit, which often means you have to pay maintenance fees to ensure the property is upheld.
The third is “Usufruct” – similar to “ownership” granting the owner a 99-year lease. However, you are not allowed to make any changes to the property.
As you can see, there are several options available to people looking at buying a property in Dubai, so it’s vital that you spend some time examining all the options to find one that matches your needs.
Work with an expert property agency
Here at Mayfair, we specialise in helping people get on the international property ladder. We can help guide you from start to finish to ensure that you get the right property and make healthy returns on your investment.
As the property market in Dubai continues to grow, there is no need to take chances and try to do everything on your own. Instead, we suggest working with an expert agency with years of experience getting purchases over the line and ensuring that all your needs are taken care of.
If you’d like to know more about purchasing property in Dubai, or you’d just like to have a chat about how you could own a property in the UAE, get in touch today.