Now is the Best Time to Buy Property in Dubai
Increased investments globally
For first-time homebuyers in the UAE, the main driver to invest in a property stems from the confidence that this country is one of the world’s safest places and one of the best countries in which to live.
Other financial and social factors have also contributed to a remarkable rebound in Dubai’s property market as it continues to grow with month-on-month transaction volumes increasing steadily. Chiefly, the fact that the UAE was among the first countries to open to visitors, a decision that was backed by an energetic vaccination programme and open-door policies. In addition, recent visa reforms have made Dubai even more appealing to investors as more people are willing to call the city their permanent home.
If you’re looking to invest in real estate, or wanting to settle down in Dubai, now is the most favourable time to buy property in this thriving metropolis. According to consultancy firm Knight Frank LLP, the emirate’s prime residential real estate is among the most affordable in major cities, with 42,356 homes valued at $1 million, second only to London.
Sterling is at its three-year high, which means buying a property in Dubai has become much more affordable as UK investors, for example, buying in pounds, could now save over 20% when buying a luxury apartment or a villa compared to prices in 2019. Additionally, a recent study by Knight Frank suggests that off-plan projects can become 14.8% and 11.2% cheaper if you are buying in euros or sterling. Here are five more reasons why you should buy a home in Dubai now:
Higher ROI
According to Property Monitor, a leading market data & insights provider, Dubai’s high return on property investments stands above 5%, tempting many residents to buy investment units.
Long-term visa options
The UAE government recent visa reforms allow citizenship and passports to investors and professionals, enabling them to acquire Emirati nationality under certain conditions. With other visa options like the UAE Golden visa and the 5-year renewable retirement visa, Dubai is expected to see a significant increase in property demand.
Elevated lifestyle
Dubai offers the best work-life balance, with high-end malls, pristine beaches, world-class restaurants, and adventure sports destinations.
A tax-free haven
Dubai’s simplified tax system is a major advantage to purchasing in the UAE. Beyond the property registration fee, which is 4%, there is no property tax in Dubai, and you won’t incur tax by renting your property out.
World-class infrastructure
The UAE has been rated ahead of the USA, Canada, and the UK for being one of the top 3 countries for infrastructure investment. And with the recently launched 2040 Urban Master Plan, Dubai expects to be the best city providing a wide diversity of lifestyle and investment opportunities for citizens, residents and visitors over the next 20 years.
Thinking of Buying a UAE Property Visa?
Since May 2019, a new long-term residency and golden visa scheme was launched, enabling foreigners to live, work and study in the UAE without an Emirati sponsor. With equally attractive benefits for property investors and to the reduction of the minimum financial requirement to apply for a 3-year investor visa, the prospect of investing and living in Dubai has become much easier and more appealing.
Who can buy property in Dubai?
Anyone can buy a property in Dubai, providing they have the funds. You don’t need to live in the emirate or work here, and there is no age limit. Freehold properties can only be purchased in designated areas for foreign investment. This is not limiting, however, since there are many freehold areas across Dubai.
What type of property will be considered and for what value?
The property or properties should be 100% ready, not on a construction plan, and most importantly, not subject to a dispute. The purchase value (not the current market value) of your property needs to be at least AED 750,000 or above, and you have paid off a 50% mortgage (you should be mentioned as the property owner). The Dubai Property Visa can be issued against residential properties purchased in a freehold area (Apartment, Serviced Apartment, Villa, Townhouse) and/or commercial properties (Hotel Room, Hotel Apartment, Office, Warehouse). You are eligible for a UAE investor visa as long as your total investment is AED 750,000 or above in one of a maximum of three properties. If multiple people own the property, everyone can apply for a Dubai investor visa as long as they have a share of AED 750,000 or above in purchase value. If the property is owned jointly by husband and wife, both can apply for a UAE investor visa even if the property’s total purchase value of AED 750,000 is divided between both of them. An attested marriage certificate has to be presented in this case
Three Year Dubai Property Visa
The visa is issued for three years tenure and can be renewed before or upon expiry at a nominal cost. The Dubai Land Department (DLD) has announced the reduction of the minimum financial requirement to apply for a 3-year investor visa from AED 1,000,000 (USD 272,300) to AED 750,000 (USD 205,000).
This visa offer is available only when purchasing a residential property ready for occupancy. If you are considering purchasing an off-plan property, you will only obtain a 3-year visa after all the construction work has been completed and the property is handed over for occupancy. The investor must provide a passport and an electronic copy of the title deed certificate to apply for a visa. If the property is mortgaged, the investor must pay the bank at least 50% of the real estate value or at least AED 750,000 at the time of application. It is also necessary to provide a no-objection letter (NOC letter) in Arabic and a mortgage bank statement.
Investors in joint ownership can apply to a 3-year visa only if the share of each individual constitutes at least AED 750,000. In addition, investments should be strictly made in one residential property and not in any commercial units. The validity period of the investor visa is maintained as long as the investor owns real estate in the country. Another requirement for the application is that real estate must be retained for at least three years, and the amount invested in the property must not be on a credit basis.
Spouses can share one real estate only if they provide an attested marriage certificate. A power of attorney (POA) is required to submit an application by a third party on behalf of the investor. If the sponsor is the mother, she must provide a letter without objections (NOC) from the father, certified by a notary, to obtain children’s visas. The unmarried letter is necessary for the sponsorship of a daughter over 18 years old. A study certificate is required to sponsor a son over 18 years old.
Five Year Dubai Property Visa
If you have invested at least AED 5 million in properties (can be split across three properties) and have no mortgage on any of the properties, you can qualify for a five-year Dubai property visa. Unlike the 10-year visa, you do not need to make additional investments. This visa is a resident visa which means you or your family members will not be allowed to work on that visa. If you or any of your family member wish to work, the visa status will have to be changed, and the organization which offers the job will have to issue a sponsoring visa.
Ten Year Residency Visa (Golden Visa)
This visa is available to any individual who invests at least AED 10 million into the UAE. It is stipulated that a maximum of 40% of the investment, or AED 4 million, can be in real estate. This may be split across up to three properties to a total value of AED 4 million. The other 60% of the investment must be made in other sectors. A six-month multiple entry visa can be issued for the applicant and used to facilitate obtaining a golden residency. This visa can be extended to facilitate the completion of the process.
New Decree Allowing Freehold Ownership for Expats In Sharjah
Sharjah’s updated real estate laws provide a clear pathway on inheritance rights related to freehold property – and which will likely lead to a fresh burst of buying from non-UAE and non-Arab nationalities.
Over the year, property sales in designated freehold areas had already attracted a wide base of nationalities. But the demographic mix is still skewed heavily in favour of UAE and GCC nationals. With the new laws specifying granting of freehold rights to all and with inheritance rights as part of it, this could well be the breakthrough moment in casting a wider net for buyers.
Most notably, the change will allow ownership in real estate development areas and projects such as our Al Mamsha Sharjah and Hayyan. The new decree opens Sharjah up to a wider pool of buyers, allowing developers to sell both locally and internationally, and will only add to the growth story of the Sharjah real estate market. Evolution of real estate laws It was in 2014 that non-Arabs were allowed to purchase property in designated areas within Sharjah on 100-year leasehold, as long as they had UAE residency.
Then in 2018, the law got an update, which meant all nationalities could buy in Sharjah without the need for a UAE residency visa. What does this mean? The right to own real estate in the emirate is limited to ‘persons who are citizens of UAE and citizens of the Cooperation Council for the Arab States of the Gulf’. “And as an exception to this, the right of ownership may be granted to others according to the following:* Ownership with the agreement of the Ruler.
In other words, transferring by inheritance by virtue of a legal notification.* Assignment by the owner to one of his first-degree relatives in accordance with what is specified in the executive regulations of this law.* Ownership in real estate development areas and projects in accordance with the regulations set by the Council. There is no better time to invest in Sharjah’s booming real estate market but now.
