Purchase Real Estate In Dubai: Everything You Should Know

Global investors are drawn to acquiring real estate in Dubai, a luxurious city renowned for its excellent property options. However, prior to making any purchase, we suggest examining certain challenges that every real estate investor must be aware of.

What Are the Benefits of Buying Real Estate in Dubai?

The purchasing process in Dubai is not so different from the Western countries. So, basically in your deal, there will be nothing radically new. Still, it may surprise you with great advantages that are not available for real estate buyers in Western countries.

• No restrictions. In this city, you are free to buy any property type that you are interested in. If you want to buy land and afterward build a house there, no one will hold you down with such an intention, because you are free to do anything you want with your property;
• Freehold zones. The government of Dubai has designated special freehold areas, where foreigners can legally own any type of property, including land, houses, flats, and commercial buildings. Those areas include Business Bay, Dubai Marina, Meydan City, Al-Bari, and many others.
• Absence of taxes. The good news is that if you planning to rent your real estate, the Dubai government will not tax you. It’s connected to the fact that Dubai doesn’t have a tax law regarding the rental income received from the property;
• Stable economy. Over the last century, the city of Dubai has turned from a little fishing village into of rapidly developing and wealthy city. This particularity is supported by a stable economy that is based on the development of the oil industry.

There are many more benefits of investing your capital into UAE real estate, but in this list, we wanted to point out only the major ones.

Difficulties Of Investments in Dubai Real Estate

Despite the imposing amount of different benefits, the purchase of real estate in the Emirates is not without difficulties. In this section, we would like to present you with some possible problems you might face in your desire to become a happy owner of real estate in this city.

Mortgages Options

As in any other country, the UAE government treats their residents better, than foreigners. If you are planning to buy a property with a mortgage, do not count on good credit options. Of course, bank financing is open for foreigners, but the loan-to-value ratios will not be as affordable as for the locals. In the end, it’s more profitable to avoid mortgages and make purchases with personal funds.

Construction Delays

A major risk to consider is construction delays, a relatively common occurrence in Dubai. It is imperative to assess the developer’s track record and communicate with the company manager before investing in a project. To ensure optimal protection, engaging a legal advisor experienced in real estate investment is highly recommended.

Quality of Real Estate

Dubai is developing extremely quickly, and many residential complexes are growing before the eyes. But sometimes the quality of the construction itself wishes the best. The reasons for this can be very different, from the developer’s savings to the rush to complete the project on time. In any case, if you see suspiciously low prices for the investment, it’s a first sign to keep your investments away from it.

Conclusion

The real estate in Dubai attracts people from around the world with its luxury and safety. But, before considering the purchase you have to deliberate all financial and legal risks, consult with a reliable expert, and make your decision only after careful consideration. Those simple steps will