Dubai’s real estate market is booming, with the highest number ever recorded in its history. In fact, last year the value of residential real estate transactions in the city reached $35 billion – the highest since the financial crisis. To find out more about the market, Insider spoke to real estate brokers in the Middle East.
Dubai’s usufruct properties can be described as a freehold type of property. These properties can be owned by foreign nationals and are approved by the Ruler of Dubai. Dubai has more than 24 areas that are approved for foreign ownership. The usufruct agreement is based on Article 1333 of the Civil Code. The owner can enter into a usufruct agreement with a tenant, who is entitled to use the property for a period of time, subject to normal wear and tear.
There are different rules for owning usufruct property in the UAE. It is important to verify the laws of each emirate before you make an investment. However, there are some advantages to buying usufruct residential properties in the UAE, especially for expatriates. The first advantage is that the UAE has no taxation system, so you can earn tax-free income. Additionally, if you invest in property in the UAE, you may qualify for a long-term residency visa.
Investing in freehold properties in Dubai can be a lucrative option. Established in 2006, Dubai Freehold Properties has a commitment to meet the demands of both investors and end-users. The team members have a deep understanding of the market, laws, and products. The team is also committed to providing excellent service and integrity.
Freehold properties in Dubai are often attractive to foreign investors. There are many projects available in Dubai’s freehold areas. These include apartments, villas and townhouse communities. These developments cater to the different needs and budgets of foreign buyers. However, a buyer should ensure that he/she purchases from a government-approved real estate agent.
Off-plan-properties, a Dubai property portal, showcases all the newest residential projects in Dubai. Visitors can find detailed real estate information, images and floor plans on this website. Moreover, off-plan-properties also offers expert consultation on real estate-related questions. The site provides a comprehensive list of services to make the buying process smooth and hassle-free.
Developers want to sell as many units before they complete the construction, so off-plan properties are often priced below market value. Buyers who purchase more than one unit may also receive special discounts from developers. These discounts can be substantial. Off-plan properties also have a high profit margin because the property’s value increases over time.
Foreign investors can purchase commonhold properties in Dubai as an individual or as part of an apartment building. Commonhold properties in Dubai are not linked to a parcel of land like freehold properties. They are comprised of the principal units of a building. As such, owners are free to use the property as they wish and sell or rent it to others.
Commonhold properties are also known by the term leasehold. These are typically apartments and condos with a long lease on the land. The lease term is generally 99 years or more, depending on the type of property. The lease typically includes a purchase price and an annual service charge to cover maintenance and upkeep. A commonhold association is often associated with commonhold properties.
Investing In Dubai’s Real Estate Market: Challenges
Dubai is one of the top international investment destinations. There is a high demand in Dubai for residential and commercial properties and a favorable regulatory environment. Its skyscrapers draw wealthy investors from all over the world and its real estate sector is growing rapidly. New development projects and Expo 2020 have spurred interest in the UAE real estate market.
Real estate in Dubai remains undervalued compared to global cities. An investment in a property here can double your money in five years. A one-bedroom apartment in Palm Jumeirah is $650,000, while a similar property in Los Angeles, Miami or New York is worth more than $1million. Investing in Dubai real estate is a safe bet – every transaction is monitored and regulated by the government, with the Real Estate Regulatory Agency handling any problems.