fbpx
Dubai Real Estate- Dubai Marina
CategoriesDubai Real Estate

Understanding the Dubai Real Estate

If you’re thinking of buying a property in Dubai real estate and aren’t familiar with the market, you should first understand the real estate sector in the city. For tips about real estate investment, see this article.

The Buying Power of Dubai Real Estate

The buying power of Dubai real estate is so enormous that Wanthorn Properties International, a leading real estate company in the Middle East, made a brochure with all the details about the market for eight million properties listed on its website. In the Chinese version of the brochure, Wanthorn’s website has listed 108 specific properties to rent, each with a price tag ranging from the U.S. $75,000 to the U.S. $450,000.

Needless to say that the current list price for most of the properties in Dubai real estate is U.S.$190 million to U.S.$435 million. Diversification into traditional property makes up for the imbalance, as Wanthorn property projects are reportedly involved in over 80% of the acquisitions.

Just like people, property developers in the United Arab Emirates are always in search of more funds to continue advancing their developments. What’s more, it’s good business for Dubai real estate agents as their fees increase for prospective buyers looking to purchase the ultimate home of their dreams. Although Dubai’s income from property trades was valued at a whopping U.S.$119.9 billion in 2019, the figure is expected to increase as much as 26.7% over the next three years, according to reports by the United Nations Conference on Trade and Development (UNTCOD).

In Dubai, Wanthorn pays commissions of between 10% and 25% for every transaction to its agent partners. These quotes are generally based on a commission basis but can go as high as 35%, leading to substantial differences between properties.“Generally speaking, the prices reflect the prices people pay. But there is a huge range, and Wanthorn only provides information about the most expensive properties,” a real estate agent at one of the leading firm’s advisors, who asked to remain anonymous, told me, requesting anonymity because of the sensitivity of the brokerage’s work. “But you don’t really understand the differences in price until you see them, and even then, it’s impossible to grasp until you see it.”

Prices, however, are subject to many conditions that determine the ultimate buyer. Buyers are required to deposit an equivalent of five per cent or more, matching the purchase price, with an American bank, Global X Rental Property Securities (GXRPS), before moving into the Dubai real estate property.

In line with Dubai’s financial sector regulations, it may take up to six months for the cryptocurrency to be verified. And buyers are advised to consult with a real estate attorney if they have concerns about the legality of the cryptocurrency transaction. Limited information and an opaque market leave many questions about the real worth of cryptocurrencies in the hands of potential investors.

Dubai Skyline

9 Things to Know Before Buying a Property in Dubai Real Estate

Buy Dubai real estate property in a good area. Invest a large amount of money into a property. This will attract people like you to buy the property and develop it. Use double-entry bookkeeping. This avoids complicated taxes from the government. To get a Tenancy Agreement, a joint residence permit is needed. This registration is doable through a lawyer’s office in Dubai’s JJ city. Check whether the developer is legitimate. Get double-checked the project details.

Determine insurance coverability. Property damage can be considerable in Dubai hence insurance should be voted for. Having a property insurance policy is a must even before buying a house in Dubai real estate. Purchase minimum liability insurance of Dhs2 million or more.

See a property appraiser. A good property appraiser can appraise the property with just a glance. No need to hire an architect or survey engineer before investing money in a property in Dubai real estate. Or not investing in property. Nothing is wrong with not buying property. You don’t need to save up any money, the broker will take care of the funds.
A good property appraiser will be present during the actual survey. A professional survey engineer will not do that work as it is portal work. Most prospective buyers prefer to hire a survey engineer themselves.
Buying or speculating on a property without a licensed property assessor is a crime in Dubai.

List the property. Let all other interested buyers know — you already filled out the form. Transfer the titles to your trust. This is very doable. Buyers in Dubai real estate circles start turning towards the property.

Develop. You may be surprised to know that the government in Dubai loves foreign investment but not in the traditional sense. Read more about this here. You shouldn’t be able to find any issues with any of the contractors working for you. Some of them are illegal. Check whether or not the contractor is bonded and how much additional security deposit you need. If you need to establish a trust for the project you will need to expand your property.

Developers provide an office. Check whether it provides good value for money. Hotels may offer you free facilities. Check whether there will be a duty of employment on rental payments. There is a lot of stuff to check before investing in a property.

Sit down with your contractor. If you have to work with a contractor for a long period your trust will be affected. It isn’t that comfortable working together with contractors doing subcontract work for a long time. The contractors start putting pressure on you for project completion. It becomes a permanent source of conflict inside your trust.

Up-to-date and accurate information about Dubai real estate is available on the website of UAERealEstate.com. Emirate cities have four tax abatements, ranging from 25% to 150%.

To qualify for such an option, a property must have a minimum paid occupancy of less than 30% and monthly gross revenue of less than Dh50,000.
With such low thresholds, it would be easy to make a killing by simply acquiring an apartment and letting it sit empty year-round. However, taking these perks into consideration, it is best to crunch the numbers on what investing in properties in Dubai and the United Arab Emirates is really worth.
Before broaching any topics related to real estate in the United Arab Emirates and Dubai, it is beneficial to have a solid understanding of the global financial crisis of 2008.

After all, Dubai’s location along the Fujairah–Behbah highway was near one of the main sources of the global financial crisis at that time. In this regard, one should understand that, not only is housing an essential component of the local economy but it is also filled with highly levered assets.
Gen Y and Z-types looking to invest in the real estate market may become too risk-averse, therefore, such individuals are advised to research the following capital components before committing:

Since the global financial crisis of 2008, Dubai has grown tremendously. Dubai’s population reached 7.9 million in 2020 and is forecasted to reach 9.7 million by 2027. If anyone wishes to visit Dubai, one must first make a beeline for Sharjah. Sharjah is located on the opposite side of the Fujairah–Behbah highway that links Dubai with neighbouring Saudi Arabia. If one travels from the Dubai peninsula to Sharjah, they will pass directly under the highway that takes them to the vastness of the local desert.

Along with this desert, there is an abundance of natural attractions in and around the Sharjah city limits. For those who wish to travel further, many sights lie within easy driving distance. One of the aforementioned sights includes the Burj Al Arab, Islam’s third-holiest site.

Another splendid asset in the vicinity is Dubai Mall, the largest indoor mall in the world by area. It houses an array of high-end department stores, luxury shops, restaurants, and shopping attractions. In short, there are a plethora of worthwhile things to do within a 25-minute drive of Sharjah.
The population of Dubai has grown and more people have moved here as Dubai has attracted wealthier citizens worldwide. To accommodate this influx, the local public transportation system has expanded in size.

Leave a Reply

Your email address will not be published.

REGISTER YOUR INTEREST

GET MORE DETAILS

Fill in your details to speak with our specialized property consultant and get more details on our developments.





    For any urgent inquiry, please call or WhatsApp our team leader at +971 50 851 3481

    All the details of developments are correct at the time of publishing and are subject to change without prior notice including special offerings, prices and payment terms. Only an official booking guarantees the availability and accuracy of purchase. All selling prices are in AED (Arab Emirates Dirham) and any other equivalent (USD or EURO) are approximate. | Deluxe Avenues © 2020-2021 All rights reserved | Privacy Policy

    leave a message

    REGISTER YOUR INTEREST



      [phonetext* id:form-phone phonetext-325 numberonly]


      [countrytext* countrytext-262]
      [countrytext* country]