So, you have decided to buy property in Dubai. Perhaps you correctly considered this a profitable investment and want to increase your capital by renting an apartment or a villa or just taking advantage of the rising prices in the market. Or maybe you decided to buy yourself a house where you will spend your vacation in a city that has a modern infrastructure, warm climate and safety.
What is the right approach to buying property in Dubai, what you need to know, where to start? After all, the acquisition of real estate in a foreign country is a very serious step. We have prepared some tips on what you need to know and how to proceed when buying a home in Dubai.
Decide on the type of property
The Dubai real estate market, according to ratings of international consulting companies, in 2013 will become one of the most dynamic markets in the world. For the first time since the global financial crisis in Dubai's real estate sector, full-fledged growth has been observed, frozen projects are being resumed, plans to create new complexes are being announced, and even at the zero stage of construction, many apartments and villas find their customers in just a few hours. Of course, in the Dubai market you can choose exactly the type of real estate that you like and fits into your budget. Here you will find villas, townhouses, apartments with different numbers of bedrooms, and small studios. If you choose residential apartments, then right in the house, most likely, you will find a pool, a gym and a children's room, and all the necessary infrastructure will be within walking distance - several restaurants and cafes, a supermarket, a pharmacy and shops. You will have to pay extra for a beautiful view from the window - in Dubai this is considered one of the most important characteristics of apartments. Out of competition, here is a view from the upper floors of the legendary skyscrapers Jumeirah Beach Residence, from where on the one hand the Persian Gulf is clearly visible, and on the other - the man-made bay of Dubai Marina. If you choose a townhouse or a villa, you will get all the same amenities, but not in such easy accessibility. The pool (one for several houses) can be easily reached on foot, but already to the nearest supermarket or restaurant you have to go by car. He will continue to get to the sea, if this, of course, is not one of the luxury villas on the "branches" of the artificial island of The Palm Jumeirah. But you can enjoy the peace, solitude and greenery pleasing to the eye: each townhouse has a small courtyard, and the villas have a full-fledged garden area.
Choose area
In Dubai, foreigners have the right to buy property in the so-called "freehold" - zones, that is, in all the most popular areas of the city. They include almost the entire territory of the "new Dubai", including such popular areas as Dubai Marina, The Palm Jumeirah, Emirates Living, Jumeirah Lakes Towers, Downtown Dubai and others. To buy an apartment by the sea or not is a matter of taste. Many of those who buy property in Dubai to spend their holidays here travel to the UAE for the sake of the sea and prefer apartments in coastal areas.
Here, the coastal mega-complex Jumeirah Beach Residence (JBR) immediately rises right at the largest city beach in Dubai, and located directly behind the JBR buildings of the Dubai Marina area. Villas and apartments on the The Palm Jumeirah artificial archipelago have private beaches, which are not accessible to outsiders.
However, not everyone wants to live in an area where there are many tourists, and constantly contemplate the seascape, or just buy real estate exclusively for investment purposes - for renting.
In Dubai, there are a number of opportunities for such buyers. For example, numerous cottage areas are more suitable for families with children or people looking for more privacy. Their main difference between themselves is the location and type of villas or town houses. Developed infrastructure, absolute privacy and security are fully inherent in all such facilities. In addition to secluded villas and skyscrapers on the seashore, in Dubai there are "intermediate" housing options. For example, The Greens area resembles cozy resort areas in European countries. There are also high-rise buildings with windows overlooking the lawns of one of Dubai's largest golf clubs - Emirates Golf Club. At the same time, the sea beloved by many of our compatriots is only 10-15 minutes away by car or 20-30 minutes by public transport.
Know your rights and responsibilities
To buy an apartment or villa in his own name, a foreign citizen of all documents only needs a passport. As a rule, buyers turn to real estate agencies, without which virtually no transaction is complete in Dubai. Of all the seven emirates that make up the UAE, Dubai has the most developed and transparent legislative base in real estate. Registration of real estate transactions is carried out in the Dubai Land Department, where the buyer is immediately issued with a document proving ownership. This "instant" registration simplifies the process of buying and selling real estate and minimizes the possible risks of the seller and the buyer.
Compliance with the law is exercised by the Dubai Real Estate Market Regulatory Agency (RERA). It, in particular, is responsible for the registration of real estate projects, as well as the licensing of developers, real estate agencies and the agents themselves. The activity of RERA is aimed at protecting the rights and interests of buyers and sellers and is designed to minimize the possibility of fraud by agents. The UAE differs from many countries of the world also in that it does not have to pay any taxes for the ownership of real estate, and the laws themselves regarding its purchase by foreigners are extremely transparent.
As for obligations, as an owner you should know what expenses for maintaining an apartment will have to be borne. When renting a home, you will have the costs of maintaining the building and the surrounding area: the protection of the building, cleaning and improvement of the common territory (parking, pool), garbage collection, and so on. As a rule, such payments are charged annually and range from 20 to 80 dollars per square meter, depending on the type of property. Temporary residents will pay for light, water and air conditioning, and if it comes to a villa or townhouse, then they will also pay for watering the lawn in their area, but not for landscaping common areas.
Keep an eye on the market
Choose the right time to buy a property, and for this carefully monitor the situation on the market. The market, as you know, is cyclical, and a recession must necessarily be followed by a rise. Such a picture is taking shape before our eyes and in Dubai. Despite the fact that the echoes of the global economic crisis still make themselves felt, the emirate’s real estate market is recovering. Recently, real estate prices and rental rates have been rising and are approaching or exceeding pre-crisis values. The world-famous consulting company Jones Lang LaSalle claims that as of August 2012, prices for villas in Dubai rose by 23% compared to the same period last year and were 14% higher than in early 2008. Apartment prices so far are growing more slowly (over the same period - by 4%) and remain 18% below their maximum values, which took place in the third quarter of 2008. As for the cost of rental housing, it is growing in annual terms on average by 5-7% in both segments. In addition, new projects in Dubai began to be launched only recently, which means that until their completion in the next few years, the supply of new housing will be noticeably limited. At the same time, the demand for the purchase and rental of real estate due to the growth of the Dubai economy and business activity in the Persian Gulf countries is expected to grow - in the first half of this year alone, foreigners bought housing for almost $ 6 billion. However, despite the price increase that has begun, it is still quite possible to purchase quality real estate in Dubai at an affordable price. In addition, the authorities and all market participants this time are interested in ensuring that the price increase is stable, and not sky-high, as on the eve of the past crisis.
Find a representative of your interests
As mentioned above, the purchase of an apartment or villa is carried out through real estate agencies that take care of all the issues involved in processing the transaction. If the buyer decides to continue relations with the agency after that, then, as the owner, he can be anywhere in the world, while the agency will pay on his behalf the costs of maintaining the property, conclude lease agreements, charge residents and so on. Those who buy an apartment or villa in Dubai to use it as a distant "summer residence" and periodically come on vacation, can also entrust real estate management in their absence to a real estate agency. It will deal with all possible housing issues - until the cleaning.
If the owner decides to cover the cost of maintaining his housing by renting it out for a short term, then the real estate agency will help find clients and arrange their stay so that it causes the owner a minimum of trouble. Such a lease may be even more profitable than a regular long-term lease. It remains only to add that the local currency exchange rate - the UAE dirham - is tightly tied to the US dollar at the level of about 3.67 dirhams per 1 dollar, which means that rental income will be stable and you do not have to monitor currency fluctuations.
You can get any additional information about the acquisition and management of your property in Dubai from the specialists of IMEX Real Estate by tel. in Moscow +7 495 5100008, toll-free number in the UAE 800-IMEX (800-4639) or by sending a request by e-mail [email protected].
