Buying property in Dubai: What investors need to know

Dubai, for the longest time, has been a hotspot for tourists from all over the world, wowing them with its spectacular sights and upscale luxury lifestyle. It is also a thriving investment hub. A stable economy with a peaceful political backdrop, world-class infrastructure and a well-protected, low-crime environment make investing in Dubai real estate a money-making venture.

Can foreigners buy property in Dubai? Yes, an ex-pat or foreign investor who buys a property in Dubai worth at least 1 million AED in a freehold estate is entitled to hold resident visas in UAE. You don’t need a visa to buy a home in Dubai.

Research the Market

The pandemic impacted the estate market of Dubai, just like the rest of the world. However, it created huge demands for larger properties owing to the remote working of the customers. 

If you want to invest in properties in Dubai, always check whether the respective property is in a designated area for foreign ownership. 

Why not read our insightful articles on the property market and speak with us to find the best areas of investment in the Dubai property market?

The Right Location

Dubai has spectacular neighbourhoods, each having its speciality and price points. Always ensure that the property and area meet your investment requirements and budget, at the same time having a high rental yield and a potential for capital appreciation.

Some of the most sought-after neighbourhoods are 

• Palm Jumeirah
• Business Bay
• Jumeirah village Circle
• Jumeirah Lake Towers
• Azizi Riviera
• Dubai Harbour
• Downtown Dubai

These areas offer an eclectic mix of upscale luxury and affordable properties with world-class facilities and easy accessibility to key business and leisure spots.

The Right Property

Dubai offers an array of properties ranging from villas, penthouses, luxury townhouses, apartments, and commercial spaces. Make choices which suit your budget, requirements, and the purpose of investment. For instance, if you want to live in Dubai, buying a villa or townhouse would be more attractive to you, the same way an apartment would be more feasible if you are investing in buy-to-let.

The Right Professionals

Buying a property in Dubai can be a daunting and complex task, although easily navigable through the guidance of a credible estate agent. Verify the credibility of the agent’s registrations before hiring them. The real estate agency and its agents should be registered with Real Estate Regulatory Authority (RERA).

Foreign investors should do the due diligence when it comes to comparing prices of properties, and rental yields in the area. A thorough check on the paperwork should be carried out – like whether the MOUs (Memorandum of Understanding) and NOCs (No Objection Certificates) are in place before submission.

The Pearl Gates property specialists with their diligent expertise and strong local network, can provide guidance, towards your journey of investing in a property in Dubai.

The Right Time

Is it the right time to buy property in Dubai? Absolutely! 

After the pandemic restrictions were lifted, tourism has once again soared in Dubai, increasing short-term rents of properties. Rental yields and property prices are rising, making real estate investments in Dubai very profitable.
Our advice to foreign investors is to invest in properties through regulated agencies, to prevent encountering scams and fake deals.

The Right Assessment

Before investing in a property, assess and calculate all the costs which are going to be accrued in the process of buying a property in Dubai. The negotiated price of the property, legal fees, service charges, agents’ commissions, and property registration duties. An investor should research and make himself aware of all the charges that are levied.

Service charges include recurring costs that have to be paid as the maintenance charge of the property, which usually has security, cleaning and facility management covered under it.

Why should you Invest in Dubai?

First and foremost, Dubai features one of the best rental returns on property in the world. The income generated from investment properties, especially short-term rentals, recovers a good percentage of the purchase amount, showcasing a good return on investments.

 However, the average return on investment in Dubai varies from about 5-7%, which is great news for investors who are seeking stable ROIs.

According to data from Arabian Business, the real estate sector in Dubai saw a growth of $143.8 billion last year, a 76.5% increase from the year 2021. Sultan Butti bin Mejren, Director-General of the Land Department, said, “Early in 2023, we announced our Strategic Plan 2026, which charts a roadmap for establishing Dubai as one of the world’s best real estate markets by ensuring effective governance, promoting innovation, harnessing the latest technologies to develop new real estate solutions and creating a data-driven sector that promotes investor confidence.”

Investors are eligible for residential visas on the purchase of property in Dubai. In fact, the higher the property value, the longer the duration of the residency visas provided to the owners of the estate. Lastly, lower property prices compared to other places on the globe with similar rental returns.

The Pearl Gates has a well-established presence in Dubai and an unmatchable reputation for bringing high-ROI investment opportunities. Find out more about buying property in Dubai!

Contact us at +974 4410 4253  or drop us a mail at contacts@thepearlgates.com.