Dubai has become a global property hotspot, with great architectural developments and ambitious projects soaring up apparently overnight. With the market still young and demand exceeding supply, the time is ripe for foreigners to invest in this vibrant, captivating city.In March 2006 the Freehold Law was passed permitting foreigners either 99 year leasehold or freehold ownership of land in designated locations. Freehold or leasehold allows the foreign investor many advantages. Owners can sell or rent out the property if they so desire. Investment possible is high, with a great demand for short-term rentals and yields about 10 percent. Dubai does not impose taxes on income, such as that from renting property. Additionally there is no Capital Gains Tax. With Dubai's population anticipated to double within the next 5 years resulting in the rental demand to improve, a property bought for the purpose of leasing may be seen as a long term income-generating asset. Owners are not needed to live in the UAE, but must go to the country briefly once every 6 months.
You will find several local and international property management companies, such as Colliers International, Cluttons, Asteco, and JG Property Management, who can look after the property when the owners are away. Properties can also be handed down as inheritance if specific procedures are adopted. Ownership of freehold property also entitles the first named owner to a three year renewable residence visa. (This visa does not permit the holder to take up work in the country.) The most well-known Dubai property developments are the Springs, Dubai Marina, Emirates Hills, the Meadows, and Arabian Ranches. Other up and coming locations consist of Business Bay, the Palms (Palm Jumeirah, Palm Deira, Palm Jebel Ali), and Jumeirah Beach Residence. Investing in Dubai's dynamic and fast moving market is quite easy.
The only paper needed is a fairly simple sales agreement. If necessary, foreigners can apply for financing. The two main lenders in Dubai, specializing in real estate mortgages, are Tamweel and Amlak. When buying property, it's advisable to make use of a lawyer and make certain a formal contract is signed, especially if purchasing on the secondary market. It is possible and quite common to purchase directly from the developer (like Emaar or Nakheel) who might charge a transfer fee of between 1-3%. It's typical to have to provide an advance payment, plus installments, with the final installment due upon completion or handover of the property. After completion, the property ought to be registered with the Dubai Lands Department. There is a land registry fee equal to 1.5% of the purchase price of the property. Owners ought to also expect to pay a yearly property maintenance fee which covers such things as any essential plumbing or electrical repairs, cleanliness of the site, and security. Purchasing a home overseas is a major choice.
It's important to research all aspects of a potential investment and deal only with reputable real estate agents since there isn't any formal structured purchase process in Dubai. Well-known real estate agents with good reputations in Dubai include Better Homes, GoWealthy, Re-Max, and Landmark Properties. Dubai's property market is likely to continue to flourish for the near future. Dubai is a thriving international destination offering a high standard of living, a tax-free lifestyle, and a safe and secure cosmopolitan community making it the perfect place to invest.
