Housing word-class infrastructures, state of the art buildings and splendid waterfront homes, there’s no dearth of residential properties in Dubai. As a matter of fact, luxury apartments in this emirate are popular all over the world. Globally recognised and renowned celebrities have purchased these lavishly designed units in this city of gold. This surely says a lot about the Dubai real estate market and compels foreigners (expats) to contemplate the idea of owning a property here as well.
However, there are a couple of roadblocks as well. Firstly, foreigners cannot become permanent residents of Dubai. There has been the latest development in this regard, though. As per the reformed citizenship law, the government nominates selected individuals and their families for this purpose. Secondly, expats can only buy properties in particular communities known as “freehold areas”. They can only lease properties in the rest of the emirate.
Buying Apartment as an Investor
Despite these roadblocks, buying an apartment in Dubai can prove to be a wise decision, particularly if you’re doing it from an investment perspective. You can rent it out and have a passive stream of income-generating for you, even if you move back to your homeland. However, be mindful that you would need someone to take care of your property in your absence. You can hire a property management firm in Dubai to ensure your apartment is properly taken care of.
From the screening of potential tenants to drafting contracts and paying housing fees, a property management company can do everything for you on your behalf.
Buying Investor for Residential Purposes
If you intend to buy the apartment for residential purpose, there are numerous factors you should consider. Doing this will help you make an informed decision.
Visits to the Emirate
If you are a frequent visitor to the emirate, buying an apartment here may prove to be a wise decision, as it will cut down on your accommodation cost. However, bear in mind that the property prices in Dubai are on the higher side. Even a small 1-bedroom apartment here can cost you a lot. This, however, depends on the project it is part of and the neighbourhood it is located in. You can find some relatively affordable units in under-developed communities or the ones located at a distance from the city centre.
The Nature and Duration of Your Job
If you have landed a job in Dubai and are planning to buy an apartment here, do not take a hasty decision. Consider the nature of your job’s contract and the duration for which it is valid before taking the plunge.
For example, if you have gotten the job for only one year, buying an apartment here may not prove to be a wise idea as, after this expiry of the contract, it will be tough for you to manage your finances. So, have a foolproof plan in place if you intend to buy an apartment in the emirate.
The Nature of Your Business
Setting up a business in Dubai is indeed a cumbersome task, since the process certainly isn’t an easy one. You will need to find a local partner (sponsor) and go through an array of other steps to be finally becoming an entrepreneur here.
Most people, after they have set up a business in Dubai, look for residential options to save rental cost. If you also plan to do the same, take into account the nature of your business first. Make sure that it has a longer shelf-life. Otherwise, you can be in a very daunting situation if the business isn’t producing the expected yield and you have a home loan to repay.
In all, buying a property in Dubai, be it an apartment or a villa, is certainly a big decision and requires a lot of research, deliberation and consideration.
If it’s your first time, the decision should be well-thought of. To lessen the risk, you can buy an off-plan apartment as these properties are available at comparatively lower prices. There are numerous projects in Dubai, including Stella Maris Tower in Dubai Marina and various others that feature state of the art properties with stunning views. The best part? They come with convenient payment plans as well.