21 07 2020

Things to consider before buying property in the UAE

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For many foreign investors the decisive factor for purchasing real estate in the United Arab Emirates is the economic and political stability in the country. Tolerance to foreigners, protection of the rights of foreigners, profitability of investments, payback and the possibility of full property and company ownership determine the continuous increase in demand for residential and commercial real estate in the country.

Consider the following if purchasing real estate in the Emirates:

    ● Determine the purpose of the purchase;

This means that you need to decide what type of real estate, residential or commercial, and for what purpose you want to buy. These aspects determine the main choice.

    ● Primary or secondary market;

Acquisition of real estate in the primary market has both advantages and disadvantages. For example, if you are buying a home from a developer directly, you pay contributions in installments during the construction of the facility. You may be provided with an installment plan, but you will have to wait until the object is finished. By purchasing an object on the secondary market, you can count on cheaper cost, the availability of complete infrastructure around the object, but also on all the disadvantages associated with its technical support or maintenance.

    ● Mortgages or loans;

Mortgages in the UAE are usually issued for a period of 10 to 20 years. To obtain a mortgage, you need to collect a package of documents and meet the conditions of the bank. Also, “off-plans” are popular. It means that the developer divides the cost of housing into a certain number of parts. “Off plans” are usually issued for a period of 1 to 5 years.

    ● Intermediaries;

Most likely, you will need the help of realtors and agents who will prepare all the necessary documents for you and select real estate options;

    ● Taxes;

There is a tax on the acquisition of real estate in the UAE, which is broken down and paid equally by both the seller and the buyer. There is no income tax on income received from real estate.

    ● Prices;

Property prices are quite high. For a one-room apartment in a residential area, you will have to pay up to 700 thousand. dirham (190 thousand $), and the cost of elite real estate of the same type can reach 3 million. dirham. (820 thousand $). The UAE market has an offer for any budget. Also, there is an advantage if purchasing real estate for an amount of 1 million dirham - a resident visa obtaining in the UAE.