How Real Estate Investment Can Improve Your Financial Future

Dubai is a city of high technology, luxury and huge opportunities, in which Arab property is one of the main engine that drives. The official Internet website Emirates.Estate will tell readers about the benefits that real estate in Dubai can give to the homeowner, about the potential and housing market prospects in the UAE.

Opportunities in the Arab real estate market

Property is one of the driving engine for the Dubai economy, so the domestic market is well developed and full of offers from leading developers. The UAE state encourages foreign investors in housing at attractive prices in the Arab primary and secondary markets, premium discounts, low mortgage rates and other appealing offers, which Emirates.Estate will discuss later.

In 2021, Dubai took the next step of development: after the last lockdown, the demand for all types of housing increased significantly, and the economy began to recover quickly after the crisis. Every month since the beginning of 2021, new records have been set for the number of transactions concluded, by July their number reached 31,758, and the value approached $20 billion.

All this is due to the new opportunities that have opened up for foreign citizens in order to involve new investments in the economy. These specific elements include:

• Making online deals;

• Receiving a long-term resident visa to buy a property in Dubai;

• Obtaining a three-year business license with the possibility to extend it further.

Here is not a full list of positive changes. Year by year, the number of foreign investors in investment apartments in Dubai and profitable real estate is increasing, which is a direct evidence of the emirate as a promising direction for doing business.

Learn more about the aspects of the positive impact of buying a property in Dubai for foreigners on life and future.

Improving financial well-being in Dubai

Many beginning investors consider Arab real estate primarily as a source of passive income with a quick payback in the future. And it is impossible not to agree with this. Luxury apartments and villas, especially located in well-known districts of the city, such as the Center of Dubai, Palm Jumeirah and Dubai Marina, can consistently generate income from 6 to 12% (depending on the type of housing rental).

Thus, buying real estate in Dubai, you get a reliable financial asset that will allow you to keep your savings and increase them in the near future.

How to earn money on apartments in Dubai, the UAE? There are 3 common alternatives:

• Rent;

• Resale of finished property in Dubai;

• Investment in off-plan properties.

Let’s take a closer look at each of them separately.

Rental business in Dubai

Renting apartments in Dubai is a source of income directly related to the demand for a specific type of housing, the type of rental and the individual characteristics of the property and its location. The average earnings of homeowners in the emirate is 6-12% per annum.

Long-term rental of flats in Dubai is a type of lease in which the contract is concluded between the owner and the tenant for at least 1 year. In order to start renting out investment properties in Dubai, the owner must provide a copy of his passport and the property ownership. The amount of income from long-term lease is from 6% to 7.2% per annum in the country.

Short-term rental of Arab apartments in Dubai is the most profitable, but at the same time less stable way of earning money. The profit per year is from 8% to 12% per annum, sometimes more. Despite the quick return on investment in short-term housing rentals, it is impossible to avoid periods of downtime when the apartment will actually be empty without a guest.

To start a short-term rental business, you need to get a special license for $ 600 and find a management company.

Ready-to-move-in property for sale in Dubai

Buying apartments in Dubai in 2021 has taken on unprecedented dimensions – only in July the number of housing transactions amounted to 4384. The most popular were apartments and villas that were completely ready to live there. Thus, all owners of ready-to-move-in property can count on a profitable resale. A total of 63% of buyers are interested in finished villas and flats for sale in Dubai.

Here are some well-known areas of Dubai, where there is the highest demand for local housing:

• Mohammed bin Rashid City – 11.5%;

• Dubai Marina – 9.3%;

• Palm Jumeirah – 7.2%;

• Jumeirah Village – 8%.

Investments in off-plan property in Dubai, UAE

The best way to invest in your future is to invest in brand new buildings in Dubai. Provided that there is free money, this idea is obviously a winning one. The unique economic environment in Dubai gives an opportunity to make profitable and safe investments in off-plan property. What are the reasons for this:

• Strict regulation of the construction sector by the state;

• All developers are subject to mandatory certification and selection, which means that only proven companies that have proved their integrity work on the market;

• Investors’ deposits are protected in case of force majeure.

The main advantage of investing in new buildings in Dubai is an affordable price (an off-plan apartment can be bought from $150 thousand) and high profitability. After the building is built and put into operation, the owner can receive an income of 2 or several times more than the initial investment.

Advantages of buying an off-plan apartment in Dubai:

• Secure and fast transaction directly with the developer (the whole process takes up to 14 days);

• The transaction was concluded in strict compliance with the law;

• Developers often provide attractive terms of the transaction: an individual payment plan, installments, discounts subject to full payment, the possibility of mortgage lending;

• Low risks;

• Return on investment;

• Quick payback – this can happen after the purchase, subject to resale, or several years after the lease;

• No taxes on Arab housing and income from commercial activities;

• Any apartment in a new building can be bought online.

Emirates.Estate will help clients buy flats in Dubai

Are you searching for the best apartments for sale in Dubai? Emirates.Estate specialists will select the ideal flat in full accordance with your preferences, requirements and financial capabilities. The catalog on the website contains only the best housing deals from trustworthy homeowners at pleasant apartment prices in Dubai. For advice on how to invest in more profitable houses in the UAE, as well as on some features of making Arab housing transactions, please get in touch with the company’s managers.

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