Dubai! As the name is enough to show the aura of the city for its mind-boggling buildings that are hard to find anywhere else in the world. The fastest-growing city has brought some very unimaginative real estate projects that are world-famous. The city has a number of skyscrapers, including the tallest in the world—Burj Khalifa. A number of scenic waterfront tourist destinations available attract a million customers to get a property in the city. Ample lavish malls that offer brands from all over the world are truly proud of Dubai. In addition to this, The Palm is a matter of talk all over the world.
But, what lets people think twice about property purchasing in Dubai are its various advantages and disadvantages. There is a great scope of efficient return on the real estate in Dubai, but at the same time, many people meet losses. It is very important to first get enlightened about the various pros and cons before purchasing to figure out if you are ready to cope with its disadvantages along with taking advantage of the benefits.
Benefits of Investing in properties of Dubai
It is very vital to be aware of the requirements you are looking for in your home, whether you are buying for the sake of just investment or living purpose. Various factors like—the size of the family, budget, priorities, required facilities, nearby locations, and many more also affect your choice. The Gulf-Realtor will assist you in learning about various projects available all over Dubai.
- Luxurious Area’s Properties—It is understandably known to all that the rate of return on real estate in luxurious areas is higher than properties in other regions. According to an authentic source, data demonstrates that investment in properties of luxurious areas is comparatively more than that of non-luxurious areas. The demand for properties in luxurious areas is growing constantly. In addition to this, the rate of luxurious properties in Dubai is cheaper as compared to properties in other countries, like—Singapore, Hong Kong, London, New York, etc. There are a number of facilities further that the properties in these areas offer that attracts customers the most.
- Constant Growth of the City—Dubai is known for its fastest vision of progression in all fields, whether education, real estate, or health. From being the nation that made an artificial offshore island—Palm Jumeirah, to building the tallest skyscraper—Burj Khalifa, Dubai justifies all the applause it gets from around the globe. The revolution of being the smartest city, it is verily profitable in investing in the city that is growing unstoppably.
- Attractive Rental Yield—This is the most important reason why people are interested in investing in properties in Dubai. As compared to the neighboring cities, they render a return of 6% on apartments and 4% on villas. Dubai, on the other hand, offers a return of over 9% on rental yields at least (According to Bayut). For people who want to invest a decent sum of money in the properties; investing in Dubai is the most appropriate option. The cherry on the top is, the administrations ask for no tax on property that is the biggest advantage.
- Dubai Property Visa—If you are planning to spend AED 10 million or more, you will be eligible for a 10-year visa in Dubai. Adding to this, you cannot sell the property for 3 years. Furthermore, if you invest AED 5 million, you are eligible for a 5-year renewable visa. If you are willing to spend AED 1 million, you will be eligible for the investor visa.
- Safety Measures—Dubai is very strict about its safety norms. The administration has designed its rules and regulations that guarantee full safety to its people. On the one hand, where other MENA countries’ crime rate is increasing, the safeguard measure so Dubai is growing equivalently. This is a priceless advantage of getting a property in Dubai.
Drawbacks of Buying Properties in Dubai
While there are a number of pros of investing in properties in Dubai, there are many cons as well. If you are prepared to handle the below-mentioned disadvantages, you are set to buy property in Dubai.
- Initial Expenses of Procedure of Purchasing—The Dubai Land Department (DLD) charges a 4% fee on the property value. The fee is charged in the name of transferring the entitlement of the property. In addition to this, if you are buying the property on a mortgage, you are supposed to pay an extra 0.25 % fee of the value to DLD with the admin fee.
- No Possibility of Becoming a UAE Citizen—Suggestion is given by the experts that you should plan to get the property for retirement purposes. If your visa expires, you will have to leave the country for whatever reason.
- Oversupply of New Properties—With the increasing supply of properties in Dubai, the prices are declining if we compare the data of the last 5 years. It is because the demand is not meeting the supply level. Around 30% decline has been noticed in the last 5 years. This gives tension to investors who had brought properties for reselling purposes.
Overall, the real estate sector is showing a boom and people are enthusiastically investing in the properties of Dubai, despite the cons mentioned above. The best locations and views are worth investing in. It basically depends on the requirements and financial status of the customers; how much they want to invest, how long they are willing to invest, and for what purpose they are purchasing.
To find properties and their all respective details, visit the projects at Gulf-Realtor. You can also learn about the process of buying a property in Dubai here.