Whenever real estate agents meet with someone who wants to invest in a property in Dubai, they are asked some repeated questions over and over again. It is the part of the agent’s profession to provide the clients with the latest and authentic information, so people can make wise decisions. Whether you want to buy villa in Dubai, or you are looking for a cosy apartment, it is crucial to take your time and get in touch with reliable resources who can guide you in the best way possible.
The most common question people have in their mind when they are dealing with an estate agent in Dubai is what they should do before buying a property. This matter always spikes a detailed discussion that revolves around several factors that one needs to know about.
If you are shifting to Dubai as an expat or for permanent residency, you should have some knowledge about the following things:
#1 Freehold VS Leasehold
Many people who are not aware of the way property dealing works in the United Arab Emirates, especially Dubai’s real estate market might get confused about the difference between freehold VS leasehold areas in the city. For safe investment, make sure that you have a clear understanding of what both of these terms means and which area comes under these jurisdictions. When you are speaking with an estate agent, ask them about the freehold and leasehold area distributions. so you can make a smart investment.
#2 Local VS Expats
In the UAE, a foreign national can not obtain citizenship by any means. The question that comes into mind is, are there any different rules for locals and expats, who are willing to buy villas, apartments, or plots in Dubai?
a) For local property investors in Dubai
People who are locals of the UAE can invest and buy property anywhere they want without worrying about any limitations, such as leasehold VS freehold areas.
b) For expat property investors in Dubai
People who shift to Dubai as expats can only invest in a property that belongs in designated communities which are known as freehold areas. If you are not a citizen of Dubai, you can lease a property for up to 99 years in a leasehold area. However, when the lease period ends, the ownership will revert back to the landlord.
Apart from these rules, the general laws that revolve around real estate transactions in Dubai are similar for locals and expats. The only limitation is that locals can actually buy and take ownership of property in leasehold areas whereas expats can’t do the same.
#3 Intention of buying a property in Dubai
This might be one of the first few questions that real estate agents in Dubai ask their clients. The motivational factor behind making the decision of investing in Dubai can determine the number of things and make the move easier as well. You have to ask yourself, are you buying a property for personal use or is it just an investment asset for you?
a) Buying property for personal use
Dubai has become the centre for millions of expatriates, who come to this glamorous city to find a job and give their family a good lifestyle. Before, properties in Dubai were considered expensive and unaffordable for expats who are collar workers. However, things have changed now. If you are an expat and you want to invest in a place to live for personal use in Dubai, consider the distance of schools, hospitals, and local transportation from the area you are planning to live-in, so you can have a smooth experience.
b) Buying property for investment
Dubai’s real estate market is pretty famous for a number of perks, such as no tax, high rental yield, transparent and smooth procedures, high capitalization of investment and so on. As a result, many people think of investing in property in Dubai. Individuals who make such decisions can enjoy a guaranteed high return on investment.
#4 Area research
After knowing these important factors, make a wise decision in choosing the right area for yourself. Places like Bulgari residencies, that offer sale options are the best choice if you want to do a smart investment.
If you think the aforementioned factors through while making a property investment in Dubai, you will always end up making a wise decision.