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Dubai real estate investment guide

Dubai real estate investment guide aims to educate potential investors on real estate investments, in general. Moreover, to explain when is the best time to invest in Dubai real estate and what are the key points which every investor should take into consideration?

Dubai real estate investment, at the moment, can be considered as the right time. Whether you are an end-user or investor – Dubai real estate investments have always been one of the most profitable ways of gaining ROI and securing your life.

In our Dubai real estate investment guide, we have collected and highlighted key points that should be taken into consideration while choosing a property to invest in.


Main benefits of Dubai real estate investment 

Why should you invest in Dubai and not other markets? The answer is quite simple – Dubai offers a number of benefits to its investors. Dubai real estate investment guide covers the main points on real estate investments and needed expenses.

Dubai is one of the fastest-growing cities, in the world. In less than 50 years it became one of the most developed and promising cities in terms of technologies, economy, and future benefits. With governmental support, it became easier to invest in Dubai real estate market. Dubai real estate investors are having an opportunity to obtain 3-, 5-, or 10-years UAE residency. Dubai real estate has one of the highest ROI, comparing to other big cities.

Overall, governmental support, new initiatives, and development of the city made the real estate market a tidbit.


Local investors with Expats

Local real estate investors 

Local investors or Emirati can purchase property in any area in Dubai. There are no limitations of leasehold or freehold areas for them.

Expat real estate investors 

Expats can only buy Dubai property in designated communities which are called freehold areas. Expats may lease a property for up to 99 years in a leasehold, but the ownership of the property will revert back to the landlord at the end of the lease period.

The general laws for real estate transaction in Dubai are the same for locals and expats however, locals are allowed to buy real estate in leasehold areas as well.


Purpose of your investments 

Before investing in real estate, you have to decide on what is the purpose of the investment? There are two types of real estate buyers: end-users and investors.

End users are the ones who would like to purchase the unit and live in it. Investors, on the other side, are chasing a different goal. They are looking for a return on investments and not aiming to keep the house for themselves.

As the purpose of the investment may wary you have to look for a different type of property. The location will differ, as well, as one of the key points when it comes to ROI is the location of the project.

Off-plan projects have higher ROI comparing to ready units. Value of the property increases closer to its completion. That is why property buyers prefer to invest in an off-plan project and re-sell it or rent out, later on. It is one of the best and fastest ways to generate a high return on investments.


Do your research 

Before choosing a property to invest in – make your research on Dubai real estate current situation, developers and coming trends. The future forecast will play a significant role in your final decision. It will help in deciding on the property type you should go for in order to gain a high return on investments.

Choosing the right developer will bring you peace of mind in terms of the finishing and overall quality of the property. It is something you can not compromise on as real estate investment is a long-term asset and should be thought through carefully.


How to choose the desired area? 

Depending on your investment goal, whether you are end-user or investor – choose the right location of your future property. Dubai real estate market is expanding. Downtown is developed and the majority of projects are completed. Those which are still under construction will have a high price and relatively lower return on investments. As prices and rent in Dubai downtown and nearby areas are high people will take a second thought on such investment and consider outskirts or a bit further area from Dubai downtown as a better option. As an investor who aims for high ROI take into consideration such areas as Silicon Oasis, Internet City or Motor City.

Research on future trends, population, and economy of the city is a must. As an example, a few years ago people used to invest in big apartments and villas as many families were coming to Dubai. Nevertheless, this trend has changed. In the past few years, Dubai residents started leaning more towards smaller apartments. The main reasons are increased in single expats and higher cost of living. Due to this change Dubai real estate developers are concentrating more on small units such as studios and 1BR. It will attract more buyers and guarantee project investment.

If you are planning to invest in Dubai real estate now and aiming for a high return on investments – consider investments in an off-plan studio or 1BR apartments.


Additional charges 

Invest in Dubai real estate and pay only AED 700,000. Such types of advertisement you can see every day. Those investors who are not familiar with the real estate market may think that this is the only cost they have to cover in order to get the desired apartment. Nevertheless, it is not the case, when it comes to real estate investments.

Agent’s Commission 

Property purchase, whether it is done with the developer or real estate agency, involves a real estate broker. Real estate broker’s commission comprises of 2% from the total property value.

Dubai Land Department 

Registration fees by Dubai land Department (DLD) for issuing Title Deed comprises of 4% from the total property value. This payment has to be made in the form of Manager’s check.

Registration Trustee Fee 

Additional payment should be done in order to transfer property ownership from one owner to another. This fee depends totally on the purchase price. In case the purchase price is less than AED 500,000 the trustee fee will be AED 2,000. Nonetheless, if the purchase price is more than AED 500,000 the trustee is AED 4,000.


Market trends 

Knowledge is the key. The right knowledge is real power. By having all needed updates and details on the current real estate market situation and future forecasts you will be armed with the right knowledge. It will help you to make the right decision on future investment. Everything takes time. Real estate investment requires responsible and thought through decision.


If you are planning to invest in Dubai real estate market but haven’t decided on what type of the unit or location to choose – contact one of our property consultants, at Universal Prime Real Estate. we will be happy to assist you and answer any question.

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