UAE real estate attracts a growing number of foreign investors
The coronavirus pandemic has turned everything upside down, and here's a good example: foreigners tend to look for stability not in Europe or the United States, but in the Middle East. The number of requests for the purchase of housing in the United Arab Emirates in January increased by 35% compared to December, reports the Emirates.Estate portal. On a yearly basis, the increase is almost 20%.
Advantages of owning a property in Dubai
Foreigners want to buy apartments in the UAE near the beach to rent out or to use them as a second home. If we are talking about the first option, then there are favorable payment terms from developers in Dubai. For example, if the project has not yet been completed, then you can get a long-term installment plan. The annual rental yield in Dubai is 5%-10%. In addition, there has been an increase in demand for premium properties with private beaches, with prices in luxury complexes starting at $2 million.
It is very easy to get a UAE visa. Air traffic with this state resumed in September, with planes fly there daily now. And even in the spring, at the height of the pandemic, the country's leaders did not take drastic measures, with the lockdown being rather mild. Many foreign investors are attracted by the favorable attitude of local authorities. It's not difficult to buy housing there. The capital of people who buy real estate is treated more leniently in the Emirates than in European countries or in the United States of America.
Rising overseas demand for UAE homes
Real estate in the UAE is gaining popularity among foreign home buyers. During the pandemic, foreigners began to actively buy housing there, with Dubai being the top destination. Is it an escape or a profitable investment?
Foreigners’ demand for local real estate also increased due to the fact that from 1 June this year, foreign investors and entrepreneurs received the right to own 100% of their business in the UAE. Now they do not need to involve a local partner from the UAE citizens to formally have 51% shareholder rights.
Most foreigners buy housing in Dubai primarily as a holiday residence while investment potential is also important. Of course, you can rent out any apartment. However, this process will be more successful if a property comes with facilities and amenities that meet tourists’ needs. This is the case for a residential complex managed by a hotel company, or even better, for a 5-star hotel occupying part of the building. In this case, the hotelier can offer the owner the most flexible scheme for using square meters.
The tax regime in Dubai (or rather, its absence) makes it especially profitable to invest in Dubai housing. In contrast, owning real estate in Europe can be quite expensive due to the annual tax a homeowner has to pay. In Dubai, you will not feel the effects of owning an idle apartment in your pocket. You will just need to pay for optional property management services. The same goes for profits. Everything you earn by renting out your property belongs to you, and you can take this money out of the country without any issues.
What properties do expats prefer?
Apartments with a view of the Persian Gulf are the most popular among foreign investors. The average area of apartments is 150 square meters. Prices vary, but the best-selling options are within a range of $300,000 to $1.5 million. Moreover, if at least $270,000is invested in real estate, the new owner can apply for a residence visa. Other popular assets include hotel rooms, which are offered for investment by local companies.
