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The UAE, and Dubai in particular, is a haven for real estate investment. But why should you invest in real estate in the United Arab Emirates? One of the main reasons many choose to invest in the UAE is that there are no taxes. The investor will not be taxed on any part of ownership, sale, or rent. Not to mention, the returns in UAE are generally higher than most other countries. Investors make a higher income on the resale or renting of the property than in most other markets globally. Here's all the reasons you should consider investing:
By investing in real estate in Dubai, the investor is granted legal residency in the city. State authorities are eager to attract foreign capital to the city, as such they've developed investment-friendly visa programs. These programs offer a 3 year visa and apply to any person who invests in a residential property worth AED 1 million or above. However, there must be a maximum of 50% of the property value under mortgage only.
If the property is jointly owned, the investor can still apply. But only if the investors share in the property is equivalent to AED 1 million. In addition, the investment must be in one single property and does not apply to commercial property.
It's also worth noting, that by investing in a property of at least AED 5 million or above, the investor is eligible for a five-year visa.
Short and long term rental options are popular choice for investors in Dubai. This is ideal for investors who are looking to make steady earnings. ROI for buy-to-let properties averages 5-6%. What makes this option so attractive to buyers is the high demand for rental properties in Dubai. Between Dubai being an international working hub and the high turnover of tourists to the city leasing apartments and villas.
The UAE is known for being a tax-free haven and the real estate industry is no exception to this. As we mentioned already, the buyer will not be taxed on any part of ownership, sale, or rent in Dubai. This is an ideal situation for investors to gain the most out of their profit.
The rent-to-own scheme, otherwise known as (Ijarah), allows the buyer to save for a down payment while paying rent. The scheme becoming more and more popular as it removes the pressure of a providing a 25% down-payment.
The Dubai lifestyle attracts many buyers to the area. There truly is something for everyone, whether you are interested in the lively party scene, want to be in the middle of the city or near the beach, or even surrounded by the calm of the desert. Then Dubai will have something for you.
These factors will also influence the ROI on the property, certain areas generate a higher return than others. Be sure to also consider things like access to transport and schools.