Dubai is THE world’s location of the future with a unique, geostrategic location and strong development. The emirate continues to grow rapidly, attracting more and more people and companies from Europe and Asia. Luxury under palm trees, a special lifestyle and sustainable, economic attractiveness ensure steady growth and increasing demand. For real estate buyers, this means not only the good returns and the medium- and long-term appreciation opportunities, but also to benefit personally from the luxury and lifestyle of Dubai.
Foreign property buyers and investors are very welcome in Dubai as they are Dubai’s growth engine. However, there are some areas where the purchase of real estate is reserved exclusively for citizens of the U.A.E. However, this does not apply to the well-known projects and locations, all of which are open to foreigners and are attracting more and more property buyers.
In Dubai, a distinction is made between “leaseholds” and “freeholds”. In short, a “leasehold” only acquires the property, but not the land. There is a “lease” contract for this that lasts between 10 and 99 years. After that, the property reverts back to the owner. “Freeholds”, on the other hand, are a “real” and fully secured real estate purchase, as it is known in Germany, for example.
Basically, the purchase works as in most European countries. There is an official purchase contract and a corresponding protection of the new owner via the DLD (Dubai Land Department), comparable to a land registry entry.
However, there are significant differences compared to Europe when it comes to purchase processing, payment and financing, as these are regulated very differently depending on the project and developer. We will be happy to help you with this.
Almost everywhere in the world, there are ancillary costs when buying a property. These usually consist of brokerage commissions, various fees and taxes, e.g. real estate transfer taxes. Here, too, Dubai has a decisive advantage for you as a buyer, because the ancillary costs are comparatively low.
In most cases, you will only incur additional costs through the DLD (Dubai Land Department / “Land Registry Entry”, approx. 4% of the purchase price) as well as some other fees in the course of processing, e.g. handover fees and “Title Deeds”. These depend, among other things, on the specific project. As a thumb value, you can assume 5-6% ancillary purchase costs (plus any brokerage commissions that may be incurred).
Our services are usually free of charge for you, i.e. there is no brokerage commission or similar.
In Dubai, depending on the location and type of rental (short/long-term), rental yields of up to 10% gross are possible. However, in the highly sought-after locations and properties, e.g. the Dubai Marina or Downtown, the yields are usually lower. On the other hand, the chances of significant, medium- and long-term increases in value are significantly higher in such locations.
Dubai is a very investor-friendly location that offers property owners a high level of legal certainty. This is also reflected in the rental contracts and modalities. Loss of rent or even rental nomads are therefore very unlikely in Dubai. In the event of an emergency, there are also very good (and fast) legal remedies available to you to secure your property and earnings.
Regardless, there are also many projects with rental guarantees that will guarantee you appropriate income over a period of several years.
Depending on the property and the type of rental, there are several options and service providers for this. We will be happy to discuss this with you on a case-by-case basis in order to find out the best possible option for you.
You should make sure to look for a competent partner, because:
Especially for outsiders who are not constantly on site in Dubai and can deal in detail with the projects, locations and developments, it is often challenging to find real estate and to evaluate it correctly.
On the one hand, this applies to the location and the connection: This has a significant impact on the demand from tenants and the own quality of living, for example if the distances become too long due to traffic problems, or the good view is soon obstructed by a neighboring project.
On the other hand, this also applies to the substance and equipment: for example, some developers use cheaper materials with lower durability or are more restrained in terms of facilities, e.g. the number of elevators. In the long run, this leads to higher maintenance and repair costs and less demand from tenants. After all, no one likes to live in a building where they have to wait too long for a free elevator, a free piece of equipment in the gym or an available meeting room.
There are also a few things to consider when it comes to the purchase process and financing, because the procedure often differs from that in Europe. And last but not least, the language is also a challenge.
It’s simple: Get in touch with us. We will advise you and discuss your wishes and possibilities. We search for suitable properties, organize the viewings (online and on-site) and support you throughout the entire purchase process. In Dubai and in Germany. Usually free of charge for you.
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The Arabian dirham (AED) is pegged to the U.S. dollar (USD) and therefore offers stability and hardly any major fluctuations, losses in value or exchange rates. (1 USD = 3.67 AED fixed for over 20 years)
From an investment of approx. 190,000 Eur in real estate (750,000 AED) you can apply for a so-called Property Investor Visa. The costs for an investor visa in Dubai start at approx. 5.000,- Eur.
The UAE is a tax-free country for investors, employees, and freezone companies. There is no income tax, no taxation on a personal level, and no tax on rental income. The only tax in the real estate sector is a real estate transfer tax of 4%.
New construction projects in Dubai are extremely well equipped. In addition to a high quality of construction, the majority of the buildings have a swimming pool, sauna, steam room and many other amenities.
The real estate market in Dubai is properly regulated and controlled by strict laws. Developers and projects are vetted, certified, and approved by the government.
Dubai is a magnet for people from all over the world. The city scores with security, a high standard of living and a good income without taxes. Rising demand is causing rents to rise. The Master Plan 2040 aims to double the current population of around 3 million by 2030 and thus boost the economy even further.
In Dubai, rental prices are relatively high compared to the purchase price. Investors benefit from returns of up to 10% (long-term rental) and much higher in short-term rentals. Dubai is experiencing a boom and can keep up with metropolises such as Singapore, Shanghai or Seoul.
Due to its ideal geostrategic location, Dubai is an international hub between Asia, Aftrika and Europe, as well as an important financial center.
In less than 8 hours flight time you can reach 80% of the world.
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