Real estate investments in the United Arab Emirates are becoming popular every year. In particular, beginning investors who previously did not buy apartments in Dubai at all or bought them, but only in their own country, are beginning to show interest.
What problems are possible and what new horizons are opening up for those who want to earn money on rent — read all this information in the new material from the property website https://emirates.estate/.
What to invest in the UAE?
From year to year, Dubai ranks highest in the ratings of investment demand. The country, created from scratch in the desert, impresses with futuristic views and a high standard of living — and you can find the trend of constant improvement here in everything from construction to landscaping and striving for environmental friendliness in accordance with world trends.
Currently, the greatest income can be expected from buying investment property in Dubai:
- Residential and non-residential real estate;
- Ready-made business options;
- Complex developments from the IT sphere.
What opportunities are opening up for real estate investors in Dubai?
The housing market in the UAE is actively developing. The construction industry has greatly progressed, if we compare the market state now and ten years ago.
Positive trends in the Dubai housing sector
It is the last 10-15 years in the UAE, especially in Dubai, that there has been an active and continuous development of new territories and the use of integrated development. What does it mean:
- New lands are being developed — residential properties in Dubai are being built from scratch according to the latest standards;
- Together with the houses, the entire infrastructure is being built up: shopping, social, road spheres;
- There are less crowded areas in the emirate for those investors who want to live in a megalopolis and not be part of the city bustle;
- Previously built-up areas are unloaded and, therefore, also benefit.
All this leads to the fact that real estate in Dubai will always be in great demand. Any purchased housing can be rented out at any time of the year or, if necessary, quickly sold, not only getting the money spent, but also making a profit due to changes in the exchange rate (the ruble is getting cheaper compared to the dollar, while the Arab dirhams have been stable for many years).
The UAE is considered one of the safest countries for investing in real estate because every transaction here is controlled by the state. In case of disputes, buyers and sellers contact the Real Estate Regulatory Agency (RERA).
It is responsible for entering new properties under construction into the register, checking developers for activity registration, and regulating conflicts related to realtors and agencies.
Since 2002, the UAE has allowed foreign citizens to become property owners, but only in certain areas. Such areas are called freehold zones. There are especially many freehold communities in Dubai.
When buying a property in Dubai, the new owner can use the housing at his discretion, and he can not only sell and rent it out but also donate and inherit it.
What problems can a property investor expect?
Of course, there are some risks that you do not need to be afraid of, but the investor just needs to be aware of them.
Cost of services
A novice businessman can buy a house in the UAE at a surprisingly low price and enjoy the purchase until he discovers that the subsequent expenses and utilities will not pay off with the amount for which he can rent this housing.
You can avoid such an incident if you choose an apartment not on your own, but through an agency that can provide you with information about your future expenses on request.
With the current demand, such a problem is rare, but you can still face an unpopular area with tenants. As a result, you will have to search for customers, and in the meantime, you will lose money — utility bills and maintenance, as well as possible mortgage payments, may fall on you. That’s why market analysis before buying an apartment in Dubai is extremely important.
Difficulties in remote work
It is good if you already live in Dubai and will be able to independently solve the emerging challenges in the public service sector. But many investors continue to live in their country and do rental business remotely, which is associated with certain risks.
Being the owner, you will have to solve such difficulties and conflicts as a ready-made apartment in Dubai, the need for repairs, equipment breakdowns, social problems between your tenants and neighbors. Finding a trusted person to conduct business will be the best solution, but then you will need to take into account additional expenses.
Pros and cons of commercial property in Dubai
Investing in commercial real estate is another convenient option for investing in the UAE. When you have such real estate for sale in Jumeirah, you have the opportunity to transfer the housing control to a management company, which will save you from the responsibilities of resolving conflicts and solving problems.
This method of investing has one significant drawback: it is unlikely that you will live in an office or a store. However, the profitability of such an investment is high and reaches 10-15% per year, for which many investors choose it.