The Middle Eastern city of Dubai is known to be home to people from all over the world, who get attracted to its luxurious lifestyle. Dubai is also a preferred destination when it comes to real estate investments owing to the gorgeous skyscrapers, unlimited retail and dining options, low crime rate, excellent transportation routes, favourable return on investments that the city has on offer.
If you are looking to buying a property in Dubai, Luxhabitat lists the benefits that you will be able to enjoy.
1. Residence Visa
Buying a property worth AED 1 million in Dubai will make you eligible for an investor visa. However, you will need to make sure that the property that you are buying is not under a mortgage or off-plan. Upon submitting a copy of your passport and the title deed to the Dubai Economic Department, the department will issue a trade license on that property after getting the approval from the Dubai Land Department. You can then go to the Immigration Department to obtain the 2-year residency visa. If you invest in a property greater than AED 5 million, you will be eligible for a 5-year renewable visa. Renewal of the above-mentioned visas will only be possible as long as you maintain ownership of your property.
Investing in a property worth AED 10 million will entitle you to have a 10-year Dubai visa. In this case, the property must remain unsold atleast for 3 years.
2. No Annual Property Taxes
You will profit if you buy a property in Dubai as you will not have to spend money on annual property taxes, which you would otherwise need to do in cities like Hong Kong, New York and London. Once you have purchased the property in Dubai and have paid the registration fees, there is no additional and ongoing tax that you will need to pay.
3. Low Acquisition Cost
Dubai real estate offers low acquisition cost when compared to cities like that of New York and London. The amount of money that you would have to spend while buying a property in Dubai is only a fraction of what you would have to spend in those cities. If you take comparable properties into consideration, you will need to pay 30% to 70% lesser in Dubai than most of the major cities of the world.
Also, the properties in Dubai are of great quality which is not very common in many other parts of the world. Luxury amenities like video security, swimming pool, well-equipped gym and high-speed elevators are one of the common things that you will spot.
4. Good return on investment
Dubai's real estate market is a matured one, thanks to its increasing population. Therefore, if you are someone who spends a hefty amount on rent every year, we advise that you rather consider buying a property of your own as it will benefit you from a good return on investment if you ever wish to sell it off. Also, Dubai offers a minimum rental yield of 5%, which is higher than many other major cities in the world. Therefore, you can also consider renting out your property so as to earn a good amount out of it. Consider investing in the Dubai Hills Estate & JVC areas, these have some of the highest rental yields.
5. Expo 2020
It is expected that the Expo 2020, that is scheduled next year, will welcome around 25 million visitors as well as new residents and will most likely result in an increase in economic activity in Dubai. It is also reposted that around 120,000 new properties will be offered in the market, which makes now a right time for you to invest in some good properties.