What you can't save on when choosing real estate in Dubai

What you can't save on when choosing real estate in Dubai

Is it worth it or not to purchase a property in Dubai? It depends on whether you’ll be to visiting the city regularly. For instance, you might choose to purchase a property here to relax while you’re on vacation. In another instance, you might choose to purchase a cottage or apartment and decide to rent it out. This way, you’ll have a good source of income. This is quite a popular choice, as many people look for and purchase housing for resale so that they can make a profit from it.

But for what reasons do foreigners purchase property in Dubai?

What are some of the things that one does not save on when purchasing a property here? These types of questions are of interest to a lot of people around the world and should be discussed in more detail to answer them satisfactorily. Let's read through the rest of the article for more insight into this.


Is it worth purchasing a property in Dubai?

For those who regularly vacation in Dubai, it is more convenient and profitable for them to have their own housing here instead of renting a property. It is more profitable because one will not have to constantly give money to a landlord, while at the same time knowing that the apartment or villa will never be yours. Because sooner or later you will have to move out. So ultimately, it's like putting money in a bottomless barrel. That is to say, it just won’t benefit you in the long run.

Also, it’s important to remember that renting a property is just for convenience, as it prevents one from constantly look for accommodation and having to give out any extra money to real estate agencies.

So for people who plan to earn an income from their own real estate, it makes more sense for them to purchase a residential space.

In any case, it is important to know what the most suitable option is for you to go with. This way, you will know to save money where you can. Such as not registering the ownership of Arab real estate if it’s not necessary. This will also be discussed in greater detail, including looking at the conditions for concluding transactions with foreigners and the advantages of purchasing a home in the city.

What you can't save on when choosing real estate in Dubai

Pros and cons for owners

Payment for accommodation is always a fairly good way to make more money and earn an income. Especially, if it’s extra income. In most cases, this is considered a passive income because the management company is engaged in the search and settlement of tenants, as well as, in the cleaning of the space after their eviction. Also, the management company usually belongs to the construction company that acquired the property. Furthermore, if the purchase of the property is made by a private person (secondary housing), then the residential complex also has an organization that serves it as well.

So to benefit from your purchase, it is important to choose the right apartment. To do this, you need to decide in advance for what period, long or short, you will be renting it out. Depending on this, you have to look for accommodation either near the city center or a few kilometers from it. The main priority though should be to try and make sure that the coast is nearby.

Many tourists come to visit Dubai to see the ocean, swim and sunbathe all day.

In addition to the ocean, it is equally important for other tourists to have attractions that are close to their homes and that are within walking distance as well. That is why these types of accommodations are usually located in the heart of the city.

Furthermore, emigrants who come to Dubai for a long time prefer houses by the ocean. Plus, many people want to live in quiet places, far from the city center.

However, most often, workers from India settle on the outskirts of Dubai with several people living in the same apartment. This type of accommodation is inexpensive. However, residents usually have to repair such real estate more often than they would others. The main reason for this is because things such as finishing, communications, and even furniture wear out faster and become unusable, especially due to amount of people occupying the space.

Furthermore, for families with schoolchildren or children who go to kindergartens, it is important that these institutions be located nearby. In addition to this, office centers are necessary for entrepreneurs, as these are people who come to Dubai to work in highly paid positions.

So if you plan in advance who you will be renting your property out to, you will be able to instruct the realtor accordingly. And in turn, he/she will be able to assist you in finding the right area and property.

Please note that to resell the property as quickly as possible, it is better to purchase accommodation near the coast shopping or office centers. What’s more, in this type of situation, reselling is not for those who are looking to purchase. The main thing is to ensure that you leave the searching of tenants to the professionals, namely, local real estate agents and management organizations.

Other advantages and disadvantages of owning Arab property

  1. The climate and more specifically, the local weather – the climate in Dubai allows one to spend time by the ocean, in the ocean, and on the coast at any time. Of course, here in Dubai, this is an advantage for many people. All year round, travelers come here to sunbathe on the coast and to explore the local attractions.
  2. The sights – the variety of tourist attractions draw crowds of tourists from many different countries. Of course, all of them either rent a house or end up purchasing one. Also, they are potential clients of investors.
  3. The transport infrastructure – this is very developed here in Dubai and allows you to conveniently move around the city, across the country, and between the Emirates. Also, you can just as easily fly to any major foreign area in the emirate. What’s more, from here dozens of planes fly daily to different cities all around the world. There are also many airliners arriving here, which bring hundreds of people to Dubai every day, arriving for a variety of purposes. All this is undoubtedly an advantage for owners and investors.
  4. Comfortable and convenient lifestyle – a high standard of living, good salaries for local workers, a variety of large shopping centers (each of them is like a separate city with ski slopes, water parks, shops, supermarkets, and even apartments). Plus, there is a wide selection of restaurants and cafés to be found in various shopping centers, including in the city In addition to the shopping centers, there are also amusement parks, office centers and much more. All this makes living here incredibly appealing and interesting for a lot of people, even those who claim they’ve already seen everything that life has to offer. This can’t be true since Dubai can surprise and mesmerize everyone.

So when reading through the above list, as well as, the rest of the article, it becomes abundantly clear housing here is not the cheapest in the world. However, this can’t even really be seen as a disadvantage since, after the purchase, investors work (or intermediaries do it on behalf of them) in the same market. Plus, when reselling real estate the amount is added to the available cost (this increases every year). And when renting a property, of course, the purchase price is also taken into account (when the rental price is set, the cost of the property has to be taken into account. So the more expensive it is, the higher the price will be for the tenants).

Following this then, are there any disadvantages to owning Arab property? Maybe there are. But that’s only for those who aren’t serious and who can’t stand the heat. Plus, if you need any further incentive to purchase Arab property, don’t forget that the city has air conditioning everywhere. So it’s not that difficult to endure the midday heat (which by the way, is only in summer and not at other times of the year).

What you can't save on when choosing real estate in Dubai

Should we purchase an apartment in Dubai?

All of the above, especially all of the many advantages point out to us why it’s worthwhile to purchase an apartment in Dubai. More to the point, since the pros outweigh the cons, purchasing an apartment in Dubai is a profitable investment. However, it is important to know and familiarize oneself with the conditions under which foreign citizens can purchase apartments (as well as other types of accommodation) in Dubai.

Purchases by citizens of other countries

In Dubai, there are places where foreigners have the right to purchase real estate with the ability to dispose of the property in any way they want. So whether they want to resell it, give away, rent it out for any length of time, inherit it, the decision is entirely up to them. They have the final say.

Where can one purchase a home like this? In the following districts:

Before purchasing any property in Dubai, you need to check on the following with the Dubai Department of Real Estate:

If you apply for a mortgage loan from a bank, they will tell you whether or not you can purchase the property (they have special lists).

In addition, realtors also have similar lists.

Foreign investors cannot purchase property in other districts. However, they are entitled to lease property in other districts for up to 99 years.

Russian citizens are entitled to take out a mortgage. In addition, financial organizations issue loans to foreigners for the purchase of apartments at rates from 6.5 to 9.5 percent. Furthermore, the periods for which loans must be paid off are usually between five and 25 years.

According to the law of the United Arab Emirates, after signing the contract, you must register this agreement with the city Office of Real Estate Registration. Otherwise, the purchase will be considered illegal. That is to say, you cannot legally do whatever you want with real estate, even live in it.

What you can't save on when choosing real estate in Dubai

Website aggregator Emirates.Estate will assist you to purchase real estate in Dubai

Find out what’s for sale in Dubai today and see what housing options are available for you right now by getting in touch with us. The website aggregator Emirates.Estate has selected only the best apartments and cottages that owners, developers, and individuals (single operating entity) have put up for sale. What’s more, there are a wide variety of these real estate properties available. From studio apartments, to townhouses and penthouses, as well as, luxurious residential complexes and so much more. When you’re spoiled for choice, you’re guaranteed to find something that suits both your budget and your taste.

Please feel free to contact us. Our experts are available and happy to be of service. So go ahead and write to us in the feedback form. Or you can even call the number on our website. Enjoy your purchase!

See also