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Dubai , after Abu Dhabi is the second richest emirate in the UAE. This
is the response of its vast import and export trading.
As oil reserves are becoming depleted the rulers of Dubai have set
about establishing Dubai as a leading financial and tourist centre of
excellence. A new Dubai is emerging: a Dubai that offers the highest
standard of living with no compromise.
Since the UAE Emirate of Dubai allowed foreigners to purchase property,
and in most cases issuing UAE residency visas, there has been a property
explosion. Dubai is rapidly becoming the obvious choice for the overseas
investor. High rents in the area combined with low purchase prices of
properties have fuelled the house-buying boom which has lead to many
exciting new developments.
Combine all this with zero property and income tax, and an unmatched
standard of living, it is no surprise that Dubai is the number one emerging
market today.
There has never before been so much activity in Dubai 's property market
as there is now, which although a response of the stable economy was
also enhanced by the current changes being made to the property law.
It is now possible for non-nationals to own freehold property in selected
developments.
Since the option to purchase real estate became available in Dubai
, there has been an extremely buoyant uptake. The market has been rising
steadily and for certain projects such as the Palm, the resale market
has been quite tremendous, with contracts swapping at a 100% increase
in certain cases. Although the market has been quite heated, the price
increase looks set to continue as properties are still very good value
for money and the tax and business advantages in Dubai are very appealing.
Currently the lack of available housing stock has caused rents to rise
and this has also lead to increasing prices of new and off plan property
too. New residents coming in to Dubai each day will put further long
term upward pressure on prices.
Dubai is a safe and very prosperous city with a strong trading tradition,
and its property sector was only released from restricted ownership
just over two years ago.
Some of the benefits Dubai has to offer:
All year round sunshine
Tax-free environment
Cosmopolitan community
One of the world's highest standards of living
Low inflation
One of the safest cities in the world
Low cost of living
Stable currency
Dubai Property the facts
Dubai real estate is five times cheaper than in London
Dubai rentals are returning between 7% and 11%
Properties are increasing up to 30% between build and completion.
Dubai is adding 85,000 housing units to accommodate the increase of
population from 1 million to 3 million in the next 3 years.
Dubai has he fastest growing population in the world with an increase
of 24% last year
Purchasers of property in Dubai are eligible to apply for a residence
visa
Most properties are freehold
A Free Trade Zone is a specially designed area for promoting
export trade and opening the home economy to outside world. The global
economy is becoming increasingly more interdependent and a free trade
zone helps as a gateway to export products.
United Arab Emirates is a strategic location for international trade.
Since its inception as a federal state the government had opened up
the economy for the foreign investors and global traders. In furtherance
of this each Emirate has established free zone/s in the respective Emirate
to promote the international trading.
Currently there are 12 active Free Trade Zones in UAE, which offer the
following incentives to the investors:
INCENTIVES TO INVESTORS
100% foreign ownership
No corporate taxation for 15 years; renewable for an additional 15 years
Freedom to repatriate capital and income
No personal income tax
Full exemption from import duties
No currency restrictions
No bureaucratic red-tape
No recruitment problems
Modern efficient communication
State-of-the-art infrastructure
Abundant energy
Attractive working environment
TYPES OF LICENCE ISSUED
In general, most of the free zones issue the following types of licences
except Dubai Internet City and Dubai Media City:
1. Trading Licence
2. Industrial Licence
3. Service Licence
How to Buy in Dubai :
Buying Off Plan
Most purchasers choose to buy off–plan by paying a deposit and then
by structured payments through to completion.
Payment schedules can range from increments of 10% up to 20%. It is
at the discretion of the developer how they structure it.
The benefit of buying off-plan is that re-sales command relatively
high premiums therefore reducing any profit margin in the investment
considerably.
Who Can Buy?
Any investor, overseas or resident, can purchase in Dubai’s luxury property
developments.
Home Financing
If you are looking for home financing options in Dubai, most developers
offer finance packages. However, Tamweel is certainly one of the best
options. Tamweel offer a wide range of products for you to choose from.
Tamweel finance properties that are ready to move into, as well as those
that are under construction. They will even pre-approve your loan before
you start looking so that you will know exactly what your budget is.
In addition, Tamweel offer you the option of owning the property outright,
or leasing it from them with an unconditional offer to own it at the
end of the lease period - whatever suits you better. All of their products
have been designed keeping your individual needs in view, especially
the need for stability and peace of mind, and that is what makes us
sure that they have a solution that is just right for you.
Payment Terms
In general, a deposit representing 10% of the buying price is required
at the contract-signing stage for all new development properties. This
is followed by what are known as stage payments that are made at regular
intervals through to completion. Contact us for project-specific details.
Bank Accounts
Buyers do not need a local bank account to arrange purchases, though
these can easily be arranged through our partners in Dubai.
Appreciation
Property prices in Dubai have experienced considerable growth, and are
forecast to remain this way for some time. This can be clearly seen
if comparing current prices with those of 6 months ago. Like all investments,
however, property prices can go down as well as up.
To Buy on the Secondary Market or the Resale Market:
If during the construction stage of a property a second party wishes
to purchase the property from the owner then the process is straight
forward.
The buyer pays the owner an agreed sum which includes those payments
the owner has already made to the developer and any premium applied
by the owner.
Exchange of contracts with owner at the developers head office usually
within two week period.
The developer will then charge a percentage of the original price of
the property (typically between 2% to 7%) to reissue the PSA with a
new name on it and update their title records. This must be done either
in person or with the buyer's authorised representative. The whole process
takes a matter of minutes.
Contract re-issued in buyers name - there is no legal representation
for either party or any stamp duty implications.
The buyer will then continue to pay the remaining instalments to the
developer as laid out in the PSA.
Commission, typically 2 to 3% is paid to the agent.
The transfer fee is paid by the purchaser.
What exactly is freehold in Dubai?
Purchasing a freehold property in Dubai now means that you own the property
forever or until you decide to sell it. You are allowed to pass this
property to your family for example, and they enjoy the same level of
ownership as you do.
Most important for investors, your resale rights are guaranteed, as
is your freedom to rent out your property to a third party, though some
restrictions apply to individual developments.
You should note that although these are freehold properties, some conditions
on their owners apply, because they are "private community"
developments. These conditions will restrict what owners can do with
their properties, and oblige them to maintain their properties to certain
standards, according to the themes and quality of the communities.
When buying an apartment, the nature of ownership is different from
that of a villa, because an apartment is a unit in a building. These
are normally classed as "common hold". Sale agreements for
apartments do, however, usually warrant effective full ownership of
the unit, subject to restrictions applying to the building, such as
renting out the unit, and making modifications.
Where can you buy freehold properties?
Most property developers in Dubai offer freehold, but so far most of
the freehold developments have mostly been limited to the Sheikh Zayed
Road, and the area of Jumeirah (including Palm Island). However, exceptions
to this include the Arabian Ranches and Emaar Towers in downtown Diera.
Other future developments include Nakheel's International City project.
What about buying in other emirates?
So far, the UAE as a whole does not have laws regarding the sale of
freehold property to non-GCC nationals. Each emirate makes its own property
laws, as Dubai has done. Recently Abu Dhabi announced the availability
of freehold, limited to "surface rights" for non-GCC nationals
in the Al Raha beach area, outside the main city limits. Ras Al Khaimah,
in the north, has created a similar development. The other emirates
are expected to follow suit, but there have been no definitive announcements
at the federal level yet.
Are property owners eligible for residence visas in the UAE?
Many developments give you the opportunity to gain a residency visa
through purchase. We also have a sister company, www.intouchdubai.com
which deals with relocation and residency visas.
Property Law
The freehold property market in Dubai really started in 1998 when the
Dubai Marina project was launched. At that time there was no freehold
property law, and villas were sold "leasehold", on 99 year
leases. In 2002 a decree was issued by the Dubai government granting
freehold rights to non-GCC nationals (The GCC is the Gulf Cooperation
Council, comprising Saudi Arabia, Kuwait, the UAE, Oman, Bahrain and
Qatar.) This provided the impetus that has led to the size and dynamism
of Dubai's property market today.
Dubai Residency
The Government has stated that a special category of residence visa
will be granted to people buying 'foreigner's' properties. The visa
will allow a purchaser to live, but not work in Dubai . The arrangements
for granting, and the terms of the visa, are at this time unclear.
Only the Government of the UAE can grant these visas, not the developer
or estate agent.
For more info about Dubai offers contact
us now and reserve Your propery!
Bulgarian Investments :
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