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Dubai real estate market

Dubai real estate market. 

Dubai real estate market has been an attractive investment field not only for local investors, but for international businessman and investors, as well. Dubai has shown itself as a center of never-ending development and high-tech technologies. Dubai – is a dream land for those who would like to make their money work, and get quick return on investments. Even though Dubai real estate market has slowed down, during last couple of years, its indicators stay stable and about to improve in the next couple of years, just before Expo 2020.

So, what exactly make people look for investment opportunities, in Dubai? Dubai was the first city where Dubai Free Zones have arisen. It gave an opportunity, to foreigners, to invest in Dubai real estate market, and to open its own business without having a local partner. All these factors made Dubai a prestigious real estate market, especially when city started developing actively, when giant skyscrapers started appearing together with luxury villas. However, foreigners still having doubts and not in a hurry when it comes to investing in Dubai real estate. Main problem is that Dubai real estate market has certain limitations, while purchasing a property as the buyer cannot become full-fledged owner and only receives the right for a long-term lease (99 years).

Dubai real estate market changes 

Dubai real estate market has changed in 2002, when Sheikh of Dubai has issued a special decree, according to which foreigners were granted the right to purchase property in designated free hold areas, such as: Dubai Marina, JBR, The Palm, and others. Areas, that have historical or architectural sights are available only for lease. These specific changes in law gave strong impetus to the construction boom in Dubai real estate market, which continues to improve even now.

Three types of the ownership 

It may seem at first, that legislation in Dubai real estate sector is primitive, nevertheless it is not true. It is very important to have a qualified lawyer who can explain the difference between three types of properties, in Dubai real estate market. To have a better understanding of it – let’s have a look at three main property types in Dubai real estate market.

  1. It is specific zones where buyers of a Dubai real estate or land acquires full rights to it and it can be dispose as they wish: sell, lease, grand to their relatives, etc. The most popular areas are: The Palm, Dubai Marina, Jumeirah Beach Resident, The Greens, and Jumeirah.
  2. This type of ownership is used when it comes to apartments or other immovable objects with the maintained order. It is beneficial for those who want to have all the rights of the property and land, but do not wish to be responsible for the territory that is considered public. Usually, the process of management of a common territory is made by the Association of Tenants, each of which pays a mandatory monthly contribution.
  3. This type of ownership is different from the freeholder as the holder of the land or property will owe it only when he pays the whole purchase amount and rental amount to its owner. The lease agreement can be short term (20 years) or long term (99 years). When the full amount has been paid, the new owner has the right to transfer it by inheritance, and even to sell.

Dubai real estate market has been an attractive piece of cake for a very long time…and it continues to improve its positions in the world arena.

 

If you are interested in investing in Dubai real estate market – contact Universal Prime Real Estate for more details.

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How to buy property in Dubai?

In most cases, the acquisition of the real estate market of the Emirate and registration of necessary documents on property is quite simple. Emirate authorities are interested in fast and simple processing transactions to facilitate the purchase or rental process of any type of the property. The parties to the transaction is required only once to pay a fee. The process of buying property in Dubai includes a number of steps, which we will discuss now.

Steps on buying Dubai property

  1. A potential buyer selects the property. It is very important to be sure that the developer or real estate agent has a license granting them the right to sell real estate property to foreign, or local nationals.
  2. The next step is the registration of the transaction of the purchase and sale of property. From the 1st of May 2014 on the territory of the Dubai standardized form of contract has been approved. Dubai Land Department (DLD) has created this form for the settlement of relations between the parties of the transaction and to avoid incorrect reading of the contract. The new form greatly accelerates the process of registration of the property.

A contract (Form A) can be downloaded on the state portal E-mart. In order to complete this form, individuals only need a document certifying the identity (passport) and legal entities needs to provide a certificate on registration, constituent documents, the decision of the Board of Directors about the acquisition of the property and documents of the Trustee company.

  1. First, both parties will draw up a preliminary contract outlining the major provisions of the transaction, such as: price, terms, property description, etc. Then the future owner needs to make a Deposit, the value of which is 10% of the total cost of the acquired property.
  2. Once transaction took place and the contract started having formal legal force, it must be registered at the Dubai Land Department. In the UAE, upon registration Department, all fees should be paid, which is (in Dubai) 4% of the project cost.
  3. After the registration of property transfer to the buyer, Certificate of ownership, as in the case of registration of the constructed object of real estate, the buyer receives a pre-registration of property rights. The conclusion of the preliminary agreement to actual purchase of the property (before the transaction) usually takes no more than 14 working days.

It is well known that 90% of wealthy people becomes so through owning real estate. Contact Universal Prime Real Estate if you are interested in investing in Dubai real estate market.