The real estate market in Dubai has witnessed a big boom in recent years and it is not showing any signs of slowing down. It is considered by many as the city of tomorrow, a city of skyscrapers and a city that has the perfect formula for success.
The fact that Dubai is attracting a lot of international attention by means of foreign businesses establishing their presence in the city and a constant rise in the number of tourists visiting the country, not to mention the high investment yields is all working in favour of the boom in the local real estate market.
Thus, Dubai has almost all the factors one would desire in a city for the purpose of property investment. This article will explain the benefits of investing in Dubai and the factors one should be aware of prior to investing.
Benefits of Investing in Real Estate
There are several reasons one might consider investing in new real estate projects. Some of the common reasons include that doing so is better than living in a rental property. Besides which it is also good from the investment perspective, both for local people as well as international clients.
Here are a few reasons why owning a property is better than renting one:
- The homeownership rates in Europe are very high, for example, it is at 53% in Germany, 96% in Romania, in the United States it is at 65% and India at 86%.
- Many views buying a home as a financial investment as well since it does yield financial returns.
- Comparing the rate for renting a property vs. buying a property in Dubai clearly shows how buying is more beneficial than renting. The reason being that renting is a monthly or annual cost which can be quite high in Dubai; however, buying a property is just a one time investment.
- For those who like to renovate, decorate and personalize their house, owning a house is more beneficial than renting one. Since any effort made towards making the changes are not lost when moving out to a different rental property.
- There is no need to deal with a landlord who may even raise the rent or ask to leave as he wishes.
- Buying or selling property in Dubai is highly simplified in Dubai and is a hassle-free process.
There are also those who prefer to buy a property for the purpose of investment rather than living as well. Dubai is also one of the best places for property investments.
Here are a few reasons why:
- One of the benefits of investing in a property is that is the best form of passive income.
- For someone who has a large amount of money to invest, property investment beats investing in a bank by a big margin.
Dubai Property Market
Dubai is one of those cities that follow a well-defined development plan. There are several new real estate projects in Dubai and many more coming up. All of these projects have a well defined time frame for completion and a well-defined plan of development.
The plans for expansion of the city are also easily available to those who require those details. Dubai already possesses a fabulous infrastructure and this is only going to get better. The city has several infrastructure projects to improve road networks and buildings, water canals, etc.
Besides having a good property market, there are many other reasons one should invest in new real estate projects in Dubai. It has a strong economy, a liberal society and it is a safe country that is free from political tension. It has a large number of tourist attractions like the Dubai Mall, Khalifa Tower, besides which there are many more under construction. It is comparatively not a very expensive city to live in and is also a place where there are a large number of fortune 500 companies having their offices.
Know Before You Invest
Care must be taken when you invest in new real estate projects in Dubai. A few important points are mentioned here:
- Do not let the broker pick you since this often works out to your disadvantage.
- Select a broker that comes highly recommended and one who has several good reviews and a high rating. It is a good idea to have a meeting prior to selecting one.
- Make sure the broker you select is legal with all the necessary permits and authorizations.
- Correct documentation is very important when it comes to real estate transactions. There are several pre-sales formalities to be completed that include documentation as well.
- Always check if there are any active tenants in the property prior to closing the deal. The owner is legally obligated to provide a two-month notice prior to any tenant hence things can turn sour if you are unaware of this situation.
- Do not take anything for granted when it comes to buying the property. Make sure the owner clearly states what is included with the property. This can be existing furniture, an existing pool, the garden, built in cupboards, etc.
- Dubai has two types of property investments popular known as leasehold, freehold. A leasehold property allows the ownership rights to the property up to a period of 99 years or less, where as freehold property has no such restrictions, the owner has full rights of the property. There is a limitation with the leasehold property, where the buyer owns the unit but not the land and hence requires permission for any additional construction.
Thus, there are a large number of reasons to invest in new real estate projects in Dubai. Two of the main reasons being that it is usually a better option for renting and the fact that Dubai one of the best places to invest in real estate. It is important to be aware of certain other facts mentioned in the article prior to investing.