Things To Know For Investing In Dubai Property As A Foreigner

Things To Know For Investing In Dubai Property As A Foreigner

Dubai is still popular. It is one of the go-to locations for serious real estate investors. That is because the country of UAE and the city offer foreign investors some great benefits. However, the foreign investor should not take the leap without looking at the complete picture surrounding real estate investment in this area.

While the foreign investor may get caught up in the low tax levies, the low crime, and other benefits this area offers, they could also be at risk for scams as well as other risks that would put a damper on their investment enthusiasm.

No matter where one invests, one has to be careful and Dubai Is not free from risks.

Risks Of Buying Property In Dubai

There are different risks that you may encounter when you try to invest in this city. Here are a few of them:

1. Con Men– Even though crime is rare in Dubai, there are still con men who look for the unwary to take their money. These con men pose as real estate agents, brokers, sellers, and even lenders just to rob you of your savings.

To avoid this problem make sure to do a good background check on the professionals you meet in this investment area.

2. Pick The Wrong Community– This will have to do more with property values and amenities. Do your research first before buying. You may lose a lot if you make the wrong purchase decision.

3. Low Rental Yields– Demand can decrease which means you may have to lower rents and get less ROI.

4. Picking The Wrong Builder– If you just bought land be careful. There are rogue builders who will either not finish the job or use inferior materials and you will lose in the long run.

5. Possible Economic Collapse– No one can predict the future and while things look rosy for this year and next, 5 years from now may be another story.

Buying Property In Dubai Pros And Cons

No matter where you invest, there will always be good things about the area and country as well as negative aspects. Here are the pros and cons of investing in Dubai:

1. Pros:

  • A Stable Economy- Dubai government has been working hard to provide stability in the real estate market with their rule changes
  • Innovation With Technological Advancement- Dubai is at the forefront of construction and technological upgrades and creativity
  • Safe Environment- Crime is rare making Dubai a very popular place for ex-pats to move to
  • Golden Visa– This visa provides perks to investors that other resident visa holders cannot get
  • Growing Population- This means that there will be a demand for rental places as well as a boost in property values as demand increases

2. Cons:

  • Political Uncertainty- Dubai is ruled by one man and what he says goes
  • It Is Not A Democracy- This means you will not have a say in how the area is governed.
  • Too Many People- This creates problems like too much traffic, noise, pollution, and bad behaviour and it may get worse
  • Too Much Focus On Luxury Accommodations- The poor and middle class may be forced to move if the trend keeps going this way
  • Uncertainty About Drawing More Tourists, Etc- It can be a big problem as Dubai builders build first and look for tenants later

Buying Property In Dubai As A Foreigner

The good news is that you do not have to be a resident to own property in this city. All you need is your passport to prove your identity and you can buy an apartment, home, villa, and so on.

The bad news is that foreign investors are limited to owning property in those neighbourhoods labelled as freehold properties. Foreign investors cannot own property outside of those areas.

Then the foreign investor must be careful as lending and other normal real estate business aspects are tougher and fewer for them than they are for the Dubai citizen.

It is best to do some research before you make an investment decision in property in Dubai.

Things To Know Before Buying Property In Dubai

  1. What is your purpose?- This is an important question to answer as it will guide your investment purchase and where you will buy.
  2. Research The Market- Not all neighbourhoods are as valuable as others. Some rent property for very little meaning that your ROI will be lower than other freehold neighbourhoods.
  3. Make Sure To Have Your Finances In Order- There are a few fees beyond the purchase price that you will have to pay. You need the money in the bank to make sure those fees are covered.
  4. Pick The Right Broker- Make sure they are RERA certified before signing any contract. Ask for their broker registration number.
  5. Understand The Buying Process- It is a different culture and everything, including real estate, is done differently here.

Buying Property In Dubai 2024

If you know the rules, then buying property in Dubai is not going to be that difficult. The culture is different so you need to make some adjustments to your attitude and the way you do business.

Before you buy, you should have an exit strategy in place. The reason for that strategy is because of the hidden factors that may lower your re-sale value. A lack of amenities will be one factor that will significantly lower your house’s value.

Some Final Words

When you want to invest in Dubai, call our office first. Our agency has over 10 years of real estate experience in both London and Dubai. Our agents can help you navigate the risks and dangers involved in international real estate investment.

When you want to go international, get advice from an agency that has been doing it for over a decade. That way you can avoid those risks and get the most out of your investment. Call our company today and talk to us about your international investment plans.

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