Saturday 23 / November / 2024
The UAE is well known for its economic stability and investor-friendly policies. The diverse and dynamic economy of the UAE is characterized by infrastructure, geographical location, and a favorable business environment to become an attractive hub for foreign investors.
Rental apartments on Bayut are one of the primary draws for Omani investors in the UAE’s thriving real estate sector. Additionally, the UAE serves as a regional trade and logistic hub. This connectivity enhances opportunities for Omani investors to explore global markets. Moreover, the UAE is well-known for global businesses and state-of-the-art leisure destinations, attracting expatriates and tourists, and driving demand for residential and commercial properties. The modern infrastructure of the UAE, world-class amenities, and demand for the real estate sector ensure rental yields and capital appreciation.
Gateway To Growth: Why Omani Investors Embrace UAE’s Property Market Potential?
Regarding buying a property in the UAE, two points should be considered: freehold and leasehold. Freehold properties mean the owner has the full hold and ownership of the property. While leasehold properties mean properties are leased from the owner for a set period of 99 years.
Meanwhile, both options have their advantages and disadvantages, so do proper research when buying a property. In terms of real estate investment Dubai and Abu Dhabi are leading. For a secure and safe investment in the real estate sector in Dubai, the government has put in place regulations and regulatory authorities.
The benefits of investing in the real estate sector in Dubai are listed below:
Golden visa opportunity
Favorable tax environment
Continuously growing economy
Variety of properties
Golden Visa Opportunity
According to Bayut, there is an opportunity for real estate investors to get a long-term residence in Dubai, through a golden visa. Without requiring a sponsor for ten years in Dubai, a visa offers a long-term residency to the holder. A property investment of OMR 209,768 is needed to be eligible for this golden visa. (According to the official portal of the UAE Government).
Favorable Tax Environment
The major advantage of investing in Dubai's real estate sector is zero taxes. In most countries, you have to pay an income tax or property tax, but Dubai is a tax-free country. All the money you make in Dubai is 100% all yours. Investors are free from annoying property taxes in Dubai while buying their homes. (According to Bayut).
Continuously Growing Economy
Investors are always keen to look at the property market’s health and the country's economy to make the right decision. Several businesses open up in different sectors like tech, hospitality, finance, design, manufacturing, and real estate in Dubai and UAE. In previous decades UAE was known for relying on petroleum products, this diversification makes investing in it a safe choice. (According to Bayut).
Properties in Dubai offer a high return on investments. The lack of taxes is a plus point for real estate investors from all over the globe. The costs of properties in Dubai are much more affordable than the other metropolises in the world.
Variety Of Properties
Every investor has their preferences while buying a property. No matter what type of property the investors are finding, Dubai is an easy place for them. Rental apartment listings on Bayut make a magnificent approach for investors, a 7-room villa for a large joint family, and studio apartments for singles are available in the heart of the city for real estate investors.
Dubai's Real Estate Horizon: Exploring the Benefits of Global Investment
There are various benefits to buying a property in Dubai for foreign investors. Some advantages of buying a property in Dubai are listed below, if you are debating on investment in the real estate sector of Dubai. (According to Bayut).
Competitive property prices
Higher rental yield
The world’s safest country
Competitive Property Prices
Compared to other cosmopolitan hubs, prices in Dubai are one of the biggest advantages for foreign investors. These competitive property prices add more value to the money, as well as derive more cosmopolitan destinations that offer high business infrastructure and a unique lifestyle. That is why Dubai is known as the most popular destination for foreign investors to buy luxury properties.
Higher Rental Yield
Dubai offers higher rental returns on investment for foreigners. For example, villas in Dubai offer a high ROI of 7.98%, while apartments have a higher ROI than villas, with an ROI of 9.04% on average. (According to Bayut).
The World’s Safest Country
Beating even countries like Singapore for the top spot, the UAE was announced as the safest country according to the survey. People from all over the world settle and invest in properties in the UAE, because of the safe living environment. Investors can explore the best neighborhoods in Dubai and Abu Dhabi for real estate that offers security and state-of-the-art amenities.
The Deputy Chairman of Dubai Police and General Security in Dubai announced the results of the survey, which revealed that 96.1% of people in the UAE felt safe walking outside at night in 2018.
Moreover, residential buildings in Dubai, Abu Dhabi, and the rest of the UAE are installed with CCTV cameras and round-the-clock security, and some communities are gated as well.
Prime Picks: Top Areas For Renting Luxury Apartments In Dubai
Various factors are included in the robust demand for rental properties in Dubai. The economy and growth in Dubai have attracted various investors and property seekers, leading to an increase in population. This influx has significantly increased the demand for rental properties, consequently increasing the pressure on rental rates.
Rental prices for luxury apartments in Dubai according to Bayut are listed below:
Note: this data is derived from the Bayut for rental prices for luxury apartments in Dubai.
The costs for expensive flats for rent in Dubai Marina increased by 12.9% for 1-bedroom apartments, 11.8% for 2-bedroom apartments, and 14.6% for 3-bedroom apartments.
Prices for apartment rentals in Business Bay surged, recording increases of 14.8% for 1-bedroom apartments, 13.1% for 2-bedroom apartments, and 20.9% for 3-bedroom apartments.
Legal Steps To Buying A Property In Dubai
There are four formal legal steps for buying real estate property in Dubai. Before you start the process of buying the property, start your property search. Determine the budget and requirements. Also, consider the property size, location, and proximity of schools, hotels, restaurants, and transportation.
Four formal legal steps for buying real estate property in Dubai are listed below:
Establishing a contract between buyer and seller
Signing an agreement of sale
Application for no objection certificate
Effecting the ownership transfer with DLD
Closing Remarks
Omani investors can gain higher returns on investment by tapping into the vibrant real estate market of Dubai. Dubai offers a stable and investor-friendly environment with capital growth and rental income. Moreover, Dubai’s diverse real estate portfolio caters to various investment opportunities with luxury villas and apartments.
There is no tax on income and capital gains in Dubai which enhances the attractiveness of investment returns. Omani investors can capitalize on the UAE’s economic growth, and enjoy attractive rental yields, and long-term capital appreciation. Investing in Dubai allows Omani investors to participate in one of the world’s most dynamic property markets. This sustained demand, coupled with proactive government initiatives and policies, creates a favorable investment climate for Omani investors seeking to diversify their portfolios.
Frequently Asked Questions (FAQ’s)
Q: What are the top areas to rent apartments in Dubai?
A: Some of the top areas to rent in Dubai include Jumeirah Village Circle, Al Nahda, Bur Dubai, and Dubai Silicon Oasis. These communities feature wide-ranging amenities and facilities for residents.
Q: How can I identify reputable developers for off-plan properties in Dubai?
A: Conduct thorough research on the developer’s past projects, financial health, and reputation. Check their registration status with the Dubai Land Department (DLD) and consult with real estate professionals.
Q: What are some of the most popular areas for freehold properties in Dubai?
A: There is a long list of freehold areas in Dubai such as Arjan, Business Bay, Culture Village, Discovery Gardens, and more that investors can choose from and it is important to choose the right location. Choosing the right area is essential for Dubai real estate investments, as it can affect the ROI you can expect from it in a few years.
