It was a small town in the middle of the desert just over half a century ago. At that time, purchasing elite objects, like the option to buy property in Dubai Marina, UAE, was not even expected. The ruling Sheik Zayed’s main task was to draw nomads’ attention to a settled way of life. He succeeded, and now not only local residents but foreigners are happy to choose the emirate as a place for permanent residence or investment in positively fluid and promising housing.
Buying Property in Dubai for Locals or Expats: What’s the Difference?
The main difference is that citizenship holders can purchase housing stock in any region of the country. There are more than 50 free zones for flats in Dubai for foreigners to choose from. It is also essential to consider that purchasing an apartment in Dubai has nothing to do with the possibility of obtaining citizenship. To apply for a residence permit, one needs to purchase an apartment worth more than $204,000 for a period of three years. Changes in legislation now allow those who purchase real estate for sale outside the plan in Dubai to apply for a residence permit. Until 2022, the property was assumed to be ready for living.
Interesting points in the legislative regulation of the purchase of real estate and its use for UAE citizens and non-residents:
- The conditions for obtaining a mortgage are more favorable for residents, and the upper threshold for lending is wider.
- UAE citizens may not pay utility bills, but only if they remain within the limits of the state-established standard for electricity and water consumption.
- The laws for buying and using real estate are different for citizens and non-citizens in the UAE. UAE citizens have better mortgage conditions and can avoid paying utility bills if they use a limited amount of electricity and water. However, they have to pay extra if they exceed the limit. Non-citizens don’t have these benefits. Moreover, considering assistance from CitizenshipElsewhere to obtain citizenship opens doors to investing in real estate with more advantageous terms, including favorable mortgage rates and tax incentives, in other countries.
One of the perspective locations
Dubai Marina
Small but popular area. More than 200 luxury residential complexes, hotels, and business centers have been built here. It is an attractive tourist location and a self-sufficient residential community. The apartments and villas here are coveted properties for sale.
The average yield on real estate is 5.95%.
Business bay
Business Bay is a mixed-use area that features a range of properties such as spacious apartments, commercial premises, and 5-star hotels, as well as restaurants, cafes, and entertainment venues situated along the waterfront of Dubai Water Canal. The area is also home to the world’s tallest hotel, the JW Marriott Marquis. While most residential properties in Business Bay are apartments, villa complexes are also available. The real estate market in this area has an average yield of 5.20%, which indicates a potential return on investment.
Palm Jumeirah
The iconic man-made island is artificial and features the most coveted villas for sale in Dubai. There are residences and premium hotels here. The island has all the necessary infrastructure: restaurants, cafes, and a variety of entertainment venues.
Studios, apartments, and luxury villas on Palma are sold and rented. Many facilities offer stunning views of the Persian Gulf.
The yield on real estate in Palma ranges from 4.12 to 5.84% per year.
Five reasons to invest in Dubai real estate
The main reasons:
- Affordability. The finished apartments can be purchased for $180,000. Buildings under construction are much cheaper.
- Variety of choices. In Dubai, you can find both budget accommodation as well as luxury houses and villas, which buyers with an unlimited budget choose.
- Territorial accessibility and ease of entry. Europeans do not require a visa and can stay in the country for up to 90 days on absolutely legal grounds. From the central part of the country to the emirate can be reached in a few hours.
- The possibility of obtaining a residence permit when buying a property. To apply for a residence permit that can be subsequently extended, one needs to purchase an apartment worth more than $204,000 for a period of three years.
- Investing in housing has a high rate of return, with the possibility of earning passive income from renting out the property at a rate of 5-9% per year.
Professional assistance in choosing a property for sale in Dubai
In Dubai, there are current announcements for selling housing under construction or finished housing. You can get acquainted with the pricing policy of the region in real time. Experts will help you choose a ready-made or off-plan project in Dubai for moving to the UAE for permanent residence or as an investment.
