Dubai is famous for many things: excellent conditions for the activities of foreign entrepreneurs, great opportunities for recreation and entertainment, a high standard of living, an ever-expanding job market, etc. But for many, Dubai represents the ideal real estate market. Construction here does not stop even for a minute.
photo credit: Jason Mrachina / Flickr
Every year, new and new properties are added to the already existing magnificent buildings that amaze with luxury, the use of the latest materials and technologies, and the convenience of planning. Although, some may consider villas prices in Palm Jumeirah, Downtown and other areas of the city quite expensive, others understand that this is a highly profitable investment that is able to bring its owner a high ROI.
Foreigners have long received the right not only to rent properties for their own or working needs, but also to acquire them. Buying an apartment, villa or commercial building in a city that is developing at a tremendous pace is a profitable investment in your own future. Since the legislation of the United Arab Emirates has its own distinctive features, you should carefully study it before deciding on a deal, or it is better to enlist the help of professional lawyers. And the Dubai real estate market itself, being unique, has its own characteristics.
We wanted to bring your attention to two vital features of the market, as well as draw your attention to the most profitable areas of the city.
The current state of the real estate in Dubai
Due to the fact that Dubai is both a strong tourist and business center of the world, the real estate market in this region is developing simultaneously in two directions: commercial and residential. Many money tourists who love to relax in the city do not want to stay in hotels, but seek to purchase their own housing. Expats who have decided to permanently move to Dubai also do not want to constantly wander around rented apartments, hatching plans to buy their own homes. As for commercial real estate, its number on the market continues to grow rapidly, because about 80% of the world’s largest companies have a representative office in the emirate or even transfer their business to one of the free zones.
Until 2008, real estate prices grew rapidly. Banks issued loans left and right to foreigners, not always caring about collateral. The crisis that began that year has somewhat changed the attitude of the government, financial institutions, and the buyers themselves to the issues of buying and renting real estate. The crisis dragged on during several years, during which time many construction sites were frozen, banks suffered losses, and expats sought to get rid of their homes, albeit at not very attractive prices.
Starting from 2013, real estate prices began to rise again (over this year, the cost per square meter increased by 25%), and so far this market has shown a steady increase. Today, investing in residential and commercial properties in Dubai is profitable and the situation is unlikely to change in the near future. Now is the best time to start investing.
photo credit: Timo Folz / Pexels
The most suitable areas for expats
In each of the world capitals there are areas that are most popular with foreigners. Dubai is no exception in this matter. Most expats prefer to settle in new areas where the minimum number of locales is concentrated. Among the same foreigners, one can feel freer, dress more simply, not wake up from calls to prayer, are not afraid to accidentally offend the religious feelings of believers, etc. One more advantage is that the real estate in new areas is better, because they were built over the past 10 years.
The list of the five most popular areas of Dubai, according to immigrants, looks like this:
- Dubai Marina is an area built on one of the artificial islands. There are elite villas, luxurious city apartments. Expats settle here due to the presence of a large number of beaches, infrastructure and many opportunities to find entertainment.
- Jumeirah Beach Residence is a densely populated bustling area with endless beaches, many restaurants, nightclubs and entertainment centers. True, it is almost impossible to find modest housing at a low price here.
- Green Community is a truly green area built up with private houses. Ideal for families, because here, despite the availability of the necessary infrastructure, it is quite quiet.
- Downtown is a small area located almost in the center of the city, on the territory of which, in addition to office, hotel and residential complexes, the main attractions of the city are located: the Burj Khalifa, the singing fountain, the Mall, etc.
- Palm Jumeirah is an area located on one of the three artificial islands of the Palms. Most of the properties here are villas, but other options can be found as well.
Of course, these areas have, in addition to advantages, some disadvantages, the main of which is the rather high cost per square meter. But to the fact that in Dubai there are no low prices for good real estate, expats need to prepare in advance. Though, you should remember that you will receive an outstanding quality for this price, so it is definitely worth spending on.
Once you have found a suitable option, immediately put forward a verbal offer to the seller. As soon as he accepted it, you can proceed to draw up a contract of sale and agree on the terms of the transaction: you will purchase housing for cash or thanks to a mortgage, the term for transferring real estate from one owner to another, the debt will be paid off in installments or in a single payment, etc.
Be prepared for the fact that most sellers will require you to confirm your financial solvency before the contract of sale is executed.
Real estate agency in Dubai
Ax Capital real estate agency is ready to consult you on all the property related matters, making the process of acquiring real estate in one of the emirates if the UAE a highly enjoyable one.