It will not be difficult for you to figure out why you should invest in a property in the UAE as the country’s attractiveness says it all.
The UAE is flourishing by leaps and bounds. With the cosmopolitan culture, the country is attracting people from all over the world. And with tax-free investment advantages, the UAE has become an investment hotspot.
A vibrant infrastructure and lower prices have created significant demand for commercial and residential properties in the country. As such, the UAE’s real estate market is booming, with emirates such as Abu Dhabi, Sharjah, Umm al-Qaiwain, and Fujairah becoming top investment destinations.
Why Invest in the UAE?
When it comes to the rationale for investing in the UAE, there is not one but several reasons.
With sunshine round the year, the country presents pleasant weather with average temperatures ranging from 24°C in winter to 40°C in summer. And magnificent architectural structures and high standards of living amenities and recreational facilities make the UAE a great place to stay.
The economy of the country is steadily growing, and that has attracted substantial international investment and people. By now, foreigners constitute around 75 percent of the UAE population as people worldwide have flocked to the majestic country. And with the real estate boom, price returns of properties have swung up to 20-40% per annum, and the average yield from rental properties is at around six percent.
There has been an increasing number of foreign professionals coming into the country to work in diverse industries. As a result, the demand for properties is on the rise. Besides, earnings in the UAE are tax-free, so workers save a significant amount of money from their salary. And many of them spend their earnings on purchasing properties in the country.
Moreover, the UAE’s cosmopolitan nature, liberal culture, and available luxurious facilities have made it a fantastic place to live in for people.
Nature also has blessed the country with many natural features, like sandy beaches, rocky mountains, waterfalls, oases, among others.
Investing in UAE Property
If you are new to the country, you can look for apartments for rent in UAE to quickly get a place to stay for a while before considering investing in a property.
But before you decide to invest in a property in the UAE, it will help if you look at a few relevant things.
Foreigners relocating to the country will encounter a bit of restriction. All real estate developments do not offer residence permits and visas for property owners to people outside the country.
You will find properties suitable for foreign investors in the beach developments, like the Jumeirah Beach Residence.
The two types of permits–the residence permit and visa for property owners–grant temporary residency to property investors and their dependents based on ownership of the property. And bear in mind that there is a line of demarcation between both the permits. While the residence permit is renewable every two years concerning the real estate property bought in Dubai, the residence visa is renewable every six months and valid for properties in any UAE emirate.
For you to become eligible for either of the two permits, the property you wish to buy must be valued more than Dh 1,000,000.
With the residence permit option, you are entitled to mortgages. You need to pay off at least 50 percent of the property price in the mortgage, and if the property value exceeds Dh 2,000,000, you should pay off Dh 1,000,000.
As the investor, you will own the property entirely, and the property has to be in a freehold area. And the title deed will be issued in the name of the applicant. But lease-to-own deeds will not be accepted.
While purchasing a property, ensure that it is turn-key and ready to occupy. Also, make sure that the size is large enough to accommodate all your family members.
You will also need a medical examination and incur some costs for the permit. For the residence permit, you have to pay a government fee of Dh 13,000, and if you take your dependents into the country, you need to pay Dh 3,000 per dependent. And for the visa option, you need to pay Dh 2,300 per applicant, including dependents.
With the flourishing economy and the UAE’s fantastic lifestyle, you have enough reason to relocate to the country. However, do not fail to brush up your knowledge about the nitty-gritty of purchasing a property in that country.