Thinking of investing in Dubai properties? Few important tips to note, and offers to beware of.
Nearly every human hopes to own some kind of property at some point in their life. Landed properties are some of the most valuable and common commodities on this list, and a well-chosen property can outlive its original owner, passing from generation to generation. A recent study by the Royal Institution of Chartered Surveyors (RICS) and International Property Measurement Standards (IPMS) showed that around 85% of the worldwide wealth is tied to real estate (rather than cash or bonds etc). And yet, deciding to buy a property is easy – but deciding where and which can be quite confusing. Following the global COVID-19 pandemic in 2020, like every other real estate market in the world, the Dubai real estate market also suffered a few setbacks. However, the Dubai market has seen a major improvement in the first half of 2021. These improvements can be tied to the following reasons; Rapid testing and vaccination by the UAE healthcare sector. Covid-19 has caused a shift in the market, with more residents wanting to move from apartments to villas as they expect to keep working from home in the foreseeable future. The UAE Government has implemented more suitable changes to the UAE Citizenship law and the Golden Visa. The UAE continues its major trend in more economic and infrastructural developments. The banks are offering more investor-friendly packages and mortgages for property buyers. So if you’re looking to invest in Dubai properties, here are a few things to note: Know your developer: There are lots of local and international developers in the UAE, so It is very important to do a background check on your developer. Choose a developer with excellent customer service and a good track record for delivery. Evaluate the qualities of projects, and compare them with other developers. Visit before making a purchase decision: Most brokers are after their commissions, so do not buy based on what they tell you. Visit and see for yourself, is it in the middle of nowhere, is that why it’s so cheap? Is the promised water view non-existent? Does the place reek of odors or mosquitos? Only a site visit will reveal that. Know the Location: Understand the location and take note of the community features. Look out for infrastructures like nearby metro stations and bus stops, schools, health centers, malls, parks, etc. These features attract the end-users, thereby increasing the long-term value of the property. Do your maths: Study the price and other numbers. Consider the service charges, Land Department registration fees, management costs, mortgage costs, current and future rent, etc. Apartments should be kept for 5-10 years to get maximum benefit. Villas can be kept for longer. An apartment can offer up to 10% RoI with a minimal increase in asset value. However, Villas offer less ROI of 2-4% but have cheaper service charges and higher value appreciation. Beware of an advert that guarantees a certain RoI. The Government is your friend: Finally, approach the relevant government authorities for advice before and not after buying. Go to the Dubai Land Department to ask about the service charges, unit and balcony areas, and project completion dates. Visit Dubai Municipality or Dubai Development Authority to check about planning issues. Contact the RTA to check about road construction progress. Approach the master developer to see if that promised school or mall opposite will actually get built. Luckily, all government entities have decent mobile apps that save you the hassle of a visit. However, if you decide to visit in person you will be met with free specialist advice and a warm cup of tea… and a smile to match!
Buying off-plan property in Dubai? Here are important things to know before investing in Dubai off-plan properties.
Purchasing an off-the-plan property may not appear to be the most apparent option, but with adequate research, better understanding, and smart investing, off-the-plan properties can yield higher returns than completed properties. Here is a complete guide to snatching the best off-plan deal in Dubai. But first, you need to understand what an off-plan property is. What is an off-plan property? Off-plan properties are unbuilt properties or properties that are in the process of being developed, purchased directly from the developer, or, in some cases, from the first owner or resellers. As a buyer, you are relying on renderings, floorplans, and virtual tours to help you decide whether this apartment is the correct one for you because you don’t have a completed property to base your decision on. If the buyer purchases directly from the developer at the time of purchase, the buyer usually pays a 10% to 20% advance and signs a SPA (Sales Purchase Agreement). Depending on which developer, the rest of the payment can and does vary, but is generally related to construction and handover. How to buy an off-plan property in Dubai Now that you know the meaning of off-plan property, you must understand the process. If the process is not clear and followed properly, it may cause concern, so we would like to elaborate on the following steps. Choose your investment: If you’re an investor or a house buyer, it is critical to check your budget and preferences with market availability in various projects when picking an off-plan property. This is where having a reliable and knowledgeable agent can help you get the most out of your investment. Know the project: Your next step will be to visit the developer’s sales boutique to gain a thorough grasp of the project’s benefits, as well as every aspect of your future property and project, using demonstration materials such as a Project Miniature Model, Brochures, or Virtual Tour. Some developers will also offer a Show Property that you can visit. Booking: After you’ve decided on a unit type, you’ll need to pay a booking fee to ensure that it’s taken off the list of available units for others. The majority of developers want a 5-10% booking fee in addition to signing the booking form for the unit of choice. Make your Down Payment and DLD Fees – After you complete the booking procedure, you will be asked to complete your first installment: “Down payment,” as well as pay the Government Registration Fees: normally 4%, however, some developers give DLD exemptions or other forms of discount. Sign the SPA: Whether you live in the country or not, the developer will send you the “Sales and Purchase Agreement” for your signature before sending you the dually signed copy after it has been signed by the developer’s authorized signatory. Oqood registration: This step is critical to ensure that your purchase is already registered with the government authorities. Once you’ve completed this step, you should receive your original contract of sale from the Dubai Land Department. Pay Due Installments: As part of the agreed-upon payment plan, you will be required to pay a certain percentage of the purchase price before your property is handed over. Completion Notice: As specified in the SPA, the developer is required to deliver the project and finish the construction before sending the completion notice to all clients at the same time. Inspection & Handover: Once you’ve made the required handover payment, you’ll be invited to examine your apartment on a specific date, in collaboration with the developer’s handover team. If you can hire a professional snagging team to accomplish this stage, it will make a significant difference in the condition and quality of your unit for future use. The benefits of purchasing a property off-plan Best Bargain: Purchasing an off-the-plan property allows investors to obtain a purchase price as soon as feasible and at the lowest possible price. Payment plans for off-plan properties are usually quite flexible and friendly. A property can be officially booked in your name with as little as a 5-10% deposit, followed by a similar figure within the following 30 days as you sign your SPA (Sales Purchase Agreement) with the developer. Eventually, the majority of the payment is deferred until the project is completed, providing an excellent opportunity for investors to buy a little more time and save up the full unit cost, or at the very least reduce the length of their mortgage repayments. Great Return On Investment: For intelligent buyers searching for reduced initial outlays and higher long-term financial returns, off-plan properties present excellent investment opportunities. Off-the-plan units are frequently sold below market value (BMV), and will naturally increase in value when the project is completed allowing investors to resell the unit at a significantly higher price once it is built. Additionally, investors can typically make a significant profit by selling off their off-plan property contracts during construction if the market has fared well, and there’s high demand for the project. Better affordability: Payment plans for off-plan properties can and do vary from developer to developer. The investment required is relatively cheap, with some developers demanding just a 5% down payment and the remainder tied to completion. Furthermore, new construction projects developed by reputable developers are finished to the highest standards, with a variety of modern amenities that save money in the long term. Increased savings in the years after the handover are possible thanks to the use of energy-efficient building practices, environmentally friendly features, and new technological breakthroughs. Lastly, Purchasing a brand new home can also help you avoid additional costs such as renovations and repairs that may be required if you purchase a property on the secondary market that hasn’t been well cared for by the previous owner. Greater choice of property units: When acquiring an off-plan unit, you will have access to the whole inventory of a building. This gives you the best opportunity to select the exact unit type you desire. By the time a project is finished, a
UAE rent prices rank fourth highest in the world, and what it means for investors.
According to a recent study by money.co.uk, UAE rent prices are ranked fourth-highest in the world just after Hong Kong, Singapore, and Qatar respectively. This may not come as a shocking result, nevertheless, this result shows how valuable real estate investment in the UAE can be. The report also showed that UAE residents spend 39.85% of their monthly spending on rent, with a three-bedroom property in the UAE costing an average of $1,921 (Dh7,054) per month for rent. Additionally, the survey also found that the monthly cost of maintaining a family of four is approximately $2,901. Furthermore, the research data compared the average cost of renting a 3-bedroom property across over 50 global destinations and found that even though Dubai residents spend $1,921 on rent per month, they get the best value for money with bigger apartments. The UAE property market has been showing great signs of recovery following the three-year oil price slump that began in 2014. This is further fuelled by people who are upgrading to larger homes with outdoor amenities amid a remote working and learning trend sparked by the Covid-19 pandemic. What does this mean for investors? The high rental income may be a good reason to invest in Dubai properties, however, there are several other reasons as well. For instance, the UAE Government has put in place several initiatives such as; residency permits for retirees and remote workers, the 10-year golden visa program, and the recent slash of the cost of setting up a business in Abu Dhabi. These initiatives trigger an inflow of ex-pats and investors alike, thereby increasing housing demand. Would you like to invest in Dubai properties? Click here to book a consultation.
Dubai real estate: Dubai villa prices grew over 10.3%, should I invest in villas?
Dubai is one of the most profitable cities to invest in properties, be it villas or apartments. The latest data shows that the Dubai Villa prices have been in an upward trend during the second quarter of 2021. Dubai villas which make up just 13% of the entire Dubai residential market are responsible for 7% of quarterly growth, and 6.3% annual expansion. According to ValuStrat’s recent report, Villas in prime locations recorded up to 10.3% growth, and” most of Dubai’s areas recovered their capital losses of last year”. The report further claimed that June sales transactions surpassed that of May by 68% while month-on-month performance saw completed home sales grow 75.5%, and off-plan registrations by 59.5%. Dubai Property prices up ValuStrat’s VPI report for April-June 2021 showed that showed capital appreciation of 1.5% for Dubai residential properties in June, aggregating 5.5% since the start of the year. Part of the growth is fuelled by new expats coming in, “We are increasingly observing a trend where European buyers are emerging as a key demographic driving sales with most being end users. Based on our conversations with brokers and industry experts, the key motivation here is the relocation of entire families from Europe as opposed to the sole breadwinner living in Dubai. As further evidence of this trend, several schools have reported an uptick in enrolments of new residents,” said Zhann Jochinke, COO, of Property Monitor. So to answer the question, should you invest in Dubai Villas? There are several factors to consider before making such a decision, such as; the market trend, which data has shown to be positive, the location, and the demand for the project. The Property Investor can provide you with a perfect mix of those factors, to ensure you invest in Villa properties with high capital appreciation. Contact The Property Investor for a free consultation today.
How to apply for an investor visa in Dubai.
I recently visited the Cube Centre at the Dubai Land Department to obtain UPDATED information regarding applying for a property Investor Residence Visa in Dubai. Watch this video to find out more… Documents required: Title deed Passport Passport photo Existing or expired Emirates ID & visa page NOC in Arabic from the bank if mortgaged Mortgage bank statement POA (If applicable) Cube Centre 3rd floor Dubai Land Department dld-taskeen@dubailand.gov.ae