Dubai is one of the most progressive cities in the world with a multinational population. Due to its loyal foreign economic and tax policy and consistently high quality of life, it acts as an attractive investment platform for wealthy foreigners. But, like any other purchase, such an investment has both its pros and cons. Next, we will tell you about it in detail.
Why buying a property in Dubai is a good idea
When choosing investment assets, the key factors are their cost, reliability, and payback. These criteria are relevant when evaluating securities or bank deposits. But for the purchase of the real estate, this approach is clearly not enough. When investing in flats for sale in Dubai, UAE, you need to evaluate not only the local real estate market but also the quality of life, economic indicators of the state. Speaking about the advantages of Dubai, it is impossible not to mention the high business activity, attractive warm climate, and transport accessibility.
Loyal tax policy
In the Arab Emirates, unlike most European countries, there are no property and income taxes and fees. In other words, the fact of owning real estate and subsequently renting it out does not oblige the owner to pay any fees in favor of the state within the UAE.
High quality of life
Despite the fact that Dubai is located on the edge of the desert, it belongs to a highly developed ultramodern metropolis with all the ensuing advantages. The city is filled with shopping malls, business centers, restaurants, etc. In 2020, Expo 2020 will be held, which is projected to attract more than 25 million tourists.
Despite the fact that Dubai is a highly developed metropolis and a popular resort, the cost of local real estate is quite commensurate with real estate prices in Spanish cities.
Difficulties you may encounter when buying real estate
Before making a deal, you have to take into account all the pros and cons. For instance, when planning to buy a Dubai apartment, you need to understand that in addition to the cost of housing, you will have to pay for agency and representative services, and in the future, keep the apartments in good condition all year round.
Real estate maintenance
All house owners in the Emirates are required to cover the costs of its maintenance. The amounts of payments can be set by the management company or the Owners’ Association (if it is formed). The payment includes the costs of cleaning common areas, building security, garbage collection, maintenance of infrastructure elements (parking, swimming pool, gym, etc.). Depending on the location and class of apartments, the average utility costs can be USD 20- USD 80 per sq. m.
Problems in obtaining a loan
Due to the global financial crisis, which has affected almost all countries to a greater or lesser extent, UAE banks are extremely reluctant to issue mortgage loans to non-residents. To date, mortgage loans are issued mainly to public sector employees, employees of large companies with a good business reputation.
In order to live in Dubai, foreign citizens need to obtain an appropriate visa, but it is not available to everyone. Such a document can be obtained by: owners of housing worth from AED 1,000,000, founders of companies whose authorized capital is at least USD 5,500, employees of local companies, as well as students studying in the UAE. The law also provides for obtaining a family visa from relatives who are citizens or residents of the UAE.
Our assistance in buying real estate in the UAE
If you want to find luxury real estate based on your interests and wishes, or you need assistance in checking and purchasing housing, you can check with the professional agency Ax Capital. Take advantage of expert advice and find a suitable home! For further details, visit the official property website https://www.axcapital.ae/.
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