How Can You Invest in Dubai as an Expat?
If we think about the future, what do we envision? Chances are that we're talking about more multicultural cities. One city which comes to mind in the Gulf region with such potential is Dubai.
As a city of the future, Dubai offers practically limitless chances for providing profitable real estate investments. The return on investment is slowly becoming unmatched, comparing Dubai with other cities.
Why should you be interested in property investment in this city?
Well, if you combine the various possibilities with the convenient regulations, you get an amazing blend which can become profitable in many ways. However, once you decide to commit to your investment, you need to consider the pros and cons before you act.
What usually attracts foreigners to purchase property in Dubai is a great ROI. To guarantee profitable returns, you have to consider the type of investment you are looking for.
It is based on individual ambitions and objectives for investing. As a rule of thumb, people pursue investment in UAE for these purposes:
They want to make Dubai their home
The majority of people aspiring to purchase their own property do so for their own residence. There are benefits of the capital gain when they sell the property in the future, but as the central reason of investing is residential, more weight needs to be attached to factors that enhance the living experience instead of return on investment.
For Rental Gains
The most common goal among property investors is rental earning. UAE and Dubai in particular are home to a huge expatriate population which lives on a rented residence, and that is where the opportunity for potential investors lies. You can compare the residential areas in Dubai and other emirates to make the best investment plan in UAE and secure highest returns.
Regardless of the way you earn (through rentals, using the property as a residence, letting it sit until you make the call to sell it), you are bound to get some gain on capital. And if that is your goal, you need to understand and study the market and invest in those properties which are most suited to this goal. The best advice is to follow and approach the best investment companies in UAE for guidance.
For Commercial Purposes
You can invest for commercial purposes too. There are many choices in commercial properties in the scope from offices and shops to warehouses and industrial land. Even with these properties, even though your base income is through the business process, you can get additional benefits of the capital gain and also rental income when possible.
What are the financing options to invest in Dubai?
The property prices in Dubai are some of the highest in the UAE and the Gulf region. But those wanting to invest in the city shouldn't get discouraged as one can use the highly attractive financing solutions to invest money in UAE.
The laws and regulations along with minimal requirements for loans make it quite convenient for every individual to look for the best investment in Dubai. Here are a couple of common financing choices which you can use:
The most frequently used financing tool in the country is the mortgage loan. The buyer has to pay a fraction of the total property price as the down payment, while the bank finances the remainder of the property price.
The loan has to be paid off through a convenient instalment plan while the buyer can start enjoying all the benefits of a property owner. The mortgage calculator can be used to estimate the EMI, or monthly instalment for a given property value.
In-House Home Loans
Another method of easily financing Dubai property is to use the in-house home financing offers. Many notable property developers in Dubai offer these financing options for their customers.
Where's the catch? Well, you get to deal directly with the developer, without the involvement of a bank or financial services provider, so the formalities, terms, and requirements are much more flexible and encouraging for the buyers.
What are the best areas to Invest in Dubai?
Every area in Dubai comes with its distinct set of features that explain its importance as an investment destination.
Choosing the best area depends on why you want to invest, as the districts differ in terms of accessibility, expected future value, living standards, environment, ROI and other important factors.
Expats also need to know about the freehold areas in Dubai, as they can purchase property in these areas. Some of the most popular areas for real estate investment in Dubai that score well in most aspects are:
- Dubai Marina
- Downtown Dubai
- Al Barsha
- Business Bay
- Jumeirah Village Circle
There are other significant areas, which include Jumeirah Village Triangle, Jumeirah Golf Estates, Al Sufouh, Barsha Heights and others. Each area is designed for a different purpose and has distinct attributes. For example, Dubai Marina is known for its relaxing environment and amazing living standards, while Business Bay is known as an ideal location for commercial investment.
So the people looking for investments in Dubai property should know about all these areas and what they have to offer.