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Acquisition of real estate abroad as one of the investment options is quite popular among residents of the CIS countries. Understanding the details of the property for sale by the sea in Dubai.
Who and why purchases property in Dubai?
Today Dubai is one of the most attractive locations for buying apartments, apartments, and villas among Russians. And the current situation on the world stage only increases the demand for housing in the UAE. Experts declare that demand in this country exceeds supply. There are many reasons for this: there is a tax regime favorable to the buyer and the flexibility of the visa system, and there are no restrictive measures against Russians against the backdrop of a special operation.
Since the beginning of 2022, the share of Russian property buyers in Dubai has increased by 67%. The number of people who want to buy housing has increased markedly. Russia has risen from seventh to fifth place in the ranking of the most active investors in the real estate market.
Buyers are interested in both villas and apartments because each has its motive. Residential real estate in the coastal zone attracts those interested in generating income from a rented apartment. Elite housing is also in demand. So, in the spring of 2022, the most expensive purchase of a villa on the island of Palm Jumeirah was registered, which was sold for 280 million dirhams (75.5 million dollars, or more than 4.56 billion rubles). Many wealthy people are interested in buying premium real estate in Dubai because it lets them get residence access, provided that the cost of housing exceeds 1 million dirhams (267,000 dollars, or 16.3 million rubles). However, with a minimum investment, a residence permit will be valid for only 6 months or 2 years. For large deposits, two investment options with more favorable conditions are regulated.
Property for sale in Dubai Market
Almost all types of real estate are available for foreigners who decide to invest their money, from small studios to luxury villas. Below are the most popular projects, all of which fall into the freehold category, where foreigners can formalize freehold ownership.
Villas:
- Dubai Land;
- Nadd al Sheba;
- green community.
Apartments and apartments in areas:
- Business Bay;
- Jumeirah Village Circle;
- Dubai Marina;
- Downtown Dubai.
In addition, you can choose the right option in the areas:
- Arabian Ranches;
- Dubai South;
- Emaar Beachfront.
The choice of area, developer, and type of housing depends on the purpose of buying property and the budget.
Profitability and payback of real estate in Dubai
Currently, 70% of customers buy real estate for a living, and the rest – for the sake of investment. A few years ago, another trend was observed: only a third of buyers purchased apartments for sale in Dubai for themselves. What income can a property owner in Dubai expect?
The most popular option is to rent out your property. According to Emirates.Estate, the investor can count on a yield of 5 to 13% in this case. The exact amounts depend on the type of housing, the terms, and conditions of the lease, as well as the location of the property. Daily rent is a little more difficult since the owner needs to obtain a license to carry out hotel activities. Nevertheless, the UAE remains one of the most loyal countries to foreign citizens who own property in Dubai, so rent attracts many to invest in real estate.
Because the ROI of popular housing categories can be 12-28%, and the average return on investment is rarely below 7%, many people want to own Dubai real estate. One of the most family-friendly projects, Damac Lagoons, brings in 8-10%. Off-plan real estate has a particularly high ROI.
Resale property in Dubai is also in demand. Acquisition of off-plan housing with further resale brings a decent income. But it is worth paying attention to the fact that for these transactions, it is required to meet the developer’s requirements. Each developer has the right to set its conditions for resale.
Real estate in Dubai
You may begin your property search right now using the services of the Emirates.Estate website. On the website, you will be able to compare costs for properties in different areas and decide what suits you best.