It is no secret that wealthy folks from all over the world are rushing to Dubai, which is currently a very popular location. Due to its robust economy, practical immigration policies, and potential to profit from real estate, Dubai has been drawing visitors from all over the world for the past few years. We’ll examine the best types of Dubai real estate to invest in this article.
Note: If you are not a local in Dubai, then we advise you to weekly car rental dubai to view all possible properties. Renting a car will allow you to consider many more options throughout the day than if you were driving a taxi. Moreover, rental companies, such as Renty, offer car rental with a driver as an additional service.
How much is a square meter in Dubai
There is a growing demand for all properties in Dubai, both new and resale. In 2022, the Government of Dubai developed an anti-COVID policy and stimulus measures to support the country’s economy, including the real estate sector. The result was a record number of transactions. However, when sales surged, Dubai’s home values followed suit.
The high purchasing power in the last year has led to the following price increase: premium-class housing has become more expensive by 35%, in the middle segment – by 37.2%, and in the budget segment – by 15.7%. Villas and townhouses are especially popular because you want to increase your living space. The cost of townhouses increased by 10.5%, while prices for villas in Dubai rose by 15.5% compared to the beginning of 2021.
To date, the typical cost per square meter in Dubai has reached AED 10,775. This is 2,933 US dollars at a rate of 1 dollar = 3.67 dirhams.
Prices per square meter also vary depending on the area. For example, in February 2022, apartments in Business Bay cost $3,967 per square meter on average, in Dubai Creek Harbor – $5,401, and in Dubai Marina – $3,748.
Mortgage rates in Dubai
The interest rate in Dubai can vary in the range of 4-7% per annum depending on the amount of the loan, the property, and the amount of the down payment. Often a fixed rate is used for long-term loans (from 10 years or more), while a differentiated rate is aimed at the speedy repayment of debt and is provided only in the short term (up to 5 years).
Why Dubai real estate wins
The advantage of Dubai is that an investor does not need to take out a mortgage to purchase real estate.
Each developer has its own payment plan. It is an interest-free installment plan: the first payment is made at the construction stage, on average, about 15% of the cost of housing, and the second – is when the facility is put into operation and also averages 15%. Subsequent payments are paid within a few years after the surrender.
In Dubai, if the transaction amount is over $273,000, then the buyer has the right to request a long-term visa for a period of two years. The process of buying real estate itself takes about a month. The interests of both the seller and the buyer are protected by local law. And for investors who are ready to invest significant capital in the UAE economy, there is the possibility of obtaining a “golden visa” and moving to the country with your family. A deposit of 5 million dirhams ($1.35 million) makes it possible to request a five-year resident card, from 10 million dirhams ($2.72 million) – a ten-year one. Any of the long-term visas can be extended multiple times.
In conclusion, we can say that in general, it is possible to invest in real estate in Dubai. However, it is worth noting that any investment carries certain risks. Therefore, study this issue in more depth.
