The Pros and Cons of Owning Real Estate in Dubai

The Pros and Cons of Owning Real Estate in DubaiIf you’re looking for a profitable investment, read on to learn the various pros and cons of owning real estate in Dubai.

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I love to support people to succeed in their various money making careers and investments.

With this in mind, I have helped folks in real estate, finance, medical professions and creative fields.

But in this article I will be focusing on sharing helpful real estate information.

In case you haven’t heard, there’s a trend for foreign investors to choose Dubai as a top destination for investments in the sphere of real estate.

Real estate for sale in Dubai by the sea provides outstanding opportunities for investors to buy Arabian housing at much lower prices than in major cities of developed countries such as New York, London, Hong Kong, etc. Therefore, it is relatively inexpensive to buy real estate in the Emirates.

Types of real estate tenure in Dubai

The developers of the UAE follow the Civil Code when performing various deals. According to the document, there are several types of real estate ownership in the UAE:

  • Freehold gives the right to use and occupy a plot of land or property permanently.
  • Musataha provides the right to develop a plot of land for a definite period not exceeding 50 years. The owner of the right “musataha” is considered as the owner of all buildings on the land plot for the specified period.
  • Usufruct is the right to use and occupy a plot of land or real estate owned by another person for a specified period not exceeding 99 years. It is also called leasehold to make the notion more understandable. 

There are also cases when the Ruler of Dubai makes a gift to a UAE citizen. It is a plot of land that can be used for various purposes. The plot is charge free, but it is subject to various restrictions. 

Owners of real estate in Dubai 

The Civil Code of the UAE does not prohibit foreign ownership of real estate in Dubai. However, each emirate may pass its own laws governing real estate ownership.

In Dubai, UAE nationals, GCC nationals and wholly owned companies can own property anywhere in Dubai. Non-UAE and GCC nationals may only own freehold, leasehold (for up to 99 years) or usufruct rights in certain areas of Dubai which are listed in Regulations Number 2 of 2006 or may own in free economic zones.

Benefits of real estate ownership in Dubai 

1. Stability and security.

Dubai has long been among the most secure destinations on the planet. The government guarantees not only the rights of its citizens, but also those of all visitors.

2. The cost of acquisition

Although Dubai is both a popular resort and developed metropolis, real estate prices, even in popular areas, are still quite comparable with popular metropolises.

3. Loyal tax policy

Once in the UAE, Europeans accustomed to income and property taxes and fees are pleased to discover that they simply do not exist here. This means that owning and renting real estate does not entail any financial obligations towards the government. Against this background, it is not surprising that the tax system of the Emirates is in the 4th place in terms of attractiveness for business.

4. Quick return on investment.

Investing in real estate in Dubai, you are guaranteed to recoup your investment, and in a relatively short time. The reason is simple: the large flow of visitors, most of whom stay here for one or two weeks, generates a stable and high demand for rental housing.

5. High quality of life

Real estate in the Emirates is also attractive because it is very comfortable to live here. In Dubai, there are all kinds of shopping areas, restaurants, and business centers. The developed entertainment industry is organically complemented by an elaborate transportation network, including unmanned metro cars.

Drawbacks of ownership in Dubai

1. Property Maintenance

As a property owner, you won’t have to pay property taxes and fees, but home maintenance costs can seem pretty high. But remember that utilities here include garbage collection, building security, maintenance of common areas and infrastructure elements, from the pool to the parking lot.

2. Getting a loan

Despite the fact that the real estate market is experiencing an apparent boom, banks in the Emirates are quite reluctant to grant mortgages, especially to foreigners. The exception is the employees of the public sector, as well as employees with impeccable business reputation of large companies.

3. Peculiarities of the culture

The number of foreigners in Dubai impresses and introduces certain tolerance towards various cultures and religions. But we must not forget that the Emirates is a Muslim state, and with a very serious attitude to religious norms. The Emirates is a Muslim country, with a very serious attitude towards religious norms.

Source of information about real estate in Dubai

Ownership of real estate in Dubai offers advantages as well as drawbacks. However, having analyzed the information above, we can say that benefits definitely outweigh the costs. To select a suitable housing option near the sea, visit the official website Emirates.Estate. An extensive collection of apartments and villas to any taste are represented on the source.

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