• Creimerman Product Team

Dubai: The hottest Real Estate option for foreigners


DUBAI UAE REAL ESTATE INVESTMENT

Dubai’s residential market opened up to foreigners in 2002, and has attracted many expat and overseas buyers since. Foreigners can purchase property in leasehold areas, which tend to be near the city center, or in freehold areas, which are spread out across the emirate. The number of units available to foreigners has increased significantly over time with an abundance of apartments, villas, and townhouses currently on sale.

The emirate’s tax-free status has undoubtedly played a key role in attracting foreign investment. Residential properties in Dubai remain tax-free after the introduction of a Value Added Tax in the UAE in 2018. These properties are either zero-rated or exempted from tax altogether.


Before introducing you to all the information related to Real State in Dubai, if you are considering your options for investment or business development, contact us! Our specialised team can help you with all your concerns. Click here.



Benefits of buying a property in Dubai for foreigners


COMPETITIVE PROPERTY PRICES

One of the biggest advantages for overseas investors is the competitive prices for properties in Dubai, when compared to other major cosmopolitan hubs. Based on Knight Frank’s 2019 Wealth Report, the average-price-per-square-foot stands at $1,629 in Shanghai, $2,020 in Paris and $2,994 in London, while the same in Dubai stands at a much more affordable $650!


HIGH RENTAL YIELDS FOR PROPERTIES

Foreigners buying property in Dubai will also benefit from high rental returns on their investment. For instance, the villa properties in Dubai offer healthy average ROI up to 6%, while the apartments communities have rental yields that reach up to 7.5% on average.


TAX SYSTEM IS INVESTOR-FRIENDLY

Another benefit for foreigners buying property in Dubai is the investor-friendly tax system in place. Currently, the UAE does not place any taxes on purchased property or rental income, allowing overseas investors to enjoy healthy returns on their property.


INVESTORS CAN OBTAIN A RESIDENCE VISA


Foreign nationals interested in living in the UAE can also acquire a residence visa by investing in property. For instance, since the introduction of the long-term visas in the UAE, real estate investors with property worth AED 5M (USD 1.36M) can be eligible for a five-year residence visa, provided they meet the other criteria, too.


Taxes and Fees in Dubai


The United Arab Emirates has historically attracted top talent and investors due to its tax-free status. While there is no income tax on personal income, salaries, capital gains and inheritance, a Value Added Tax (VAT) was introduced in 2018 after the drop in oil prices put a strain on government coffers. A standard 5% VAT is applicable to most products, goods and services in the country, resulting in a slight increase in the cost of living.


The VAT component is typically included in the asking price for products and services – so the price that appears on the label is the price that must be paid.

Apart from VAT, the governments of the individual emirates have historically charged fees for various services, such as housing fees, property transfer fees, registration fees, and knowledge and innovation fees.


BUY REAL ESTATE IN DUBAI USING CRYPTOCURRENCIES


Three types of cryptocurrencies are widely used in the Dubai real estate market:


- Bitcoin (Bitcoins)

- Altcoin Ethereum / Ethereum (Ethereum)

- XRP Ripple Altcoin


There are several ways to buy a home in Dubai, you can use both Bitcoin and other cryptocurrencies.


Real estate sellers usually work with a certain list of verified exchangers, who, in turn, work with private investors themselves or with real estate agencies working on behalf of private investors.


Exchangers acquire cryptocurrencies and exchange them for dirhams, which are used to pay for housing. The process is characterized by a high level of security, but at the same time it is transparent for all parties. The entire exchange of money for "crypt" takes less than half an hour.


Currently, the market has a positive attitude towards this type of operation, since significant gains in recent months have come precisely from investors who have become rich precisely because of the growth in the rate of cryptocurrencies. At the moment, this is already a separate category of investors, to which all the leading companies of the United Arab Emirates pay attention.


The main achievement for Dubai, the acquisition of property through cryptocurrencies, eliminated from the market a large number of intermediaries who were involved in payment processing and took a high percentage of the commission for this work.


So, if you are interested in finding out more, contact us today! Below this article you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.


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