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How to Move to Dubai Via Real Estate Purchase

Dubai is a unique place. More than 90% of the residents are expats. Citizens of different countries seek to come here. Families with children go for safety and first-class infrastructure. Specialists a looking for career prospects and high salaries. Entrepreneurs are into favorable business conditions and low taxes. Here's the thing: a lot of new long–term visas for freelancers, pensioners, investors, homebuyers have appeared in the UAE in recent years…

We have talked to the experts of the Stage Properties agency, which operates in the Dubai market, about buying real estate as the way to immigrate to the Emirates. Read the main facts and tips from market professionals.

Resident Visa for Property Owners. How to Get It

Interest in moving to the UAE has increased amid the pandemic. The Emirates surprised the whole world with how they cope with the consequences of the coronavirus. While most countries remained closed to travel, Dubai hosted guests, many of whom wanted to stay in the country for a long time.

However, the success has only strengthened the trend that has been forming for years. The UAE is consistently among the leaders in international quality of life ratings. According to the HSBC Expat Explorer study 2021, the Emirates is in fourth place among the best countries for expats. At the same time, over 71% of the survey participants consider the MENAT region (Middle East, North Africa, and Turkey) stable and prosperous. The UAE took second place out of 134 in the ranking of countries' security according to Global Finance for 2021.

Foreigners who plan to stay in Dubai for a long time need a resident visa (analogous to a residence permit). One way to get it is to invest in local real estate. Depending on the volume of investments, you can choose between several types of investor visas.

Validity period The amount of investment in dirhams, AED The amount of investment in dollard, USD
3 years 750,000 205,000
5 years 2,000,000 545,000
10 years («golden visa») 10,000,000 2,700,000
* You can extend your visa if the basis for the property remains under ownership.

 

Ghassan Saliba CEO Stage Properties
 Foreigners who invest in the public sector of the UAE in the amount of 10 million dirhams receive a privileged ten-year resident visa. There is one important condition: 40% of the total amount must be invested in the real estate purchase, and the remaining 60% must be directed to other areas, such as startups or business development. It is also worth remembering that to obtain a visa, real estate investment must be ready for settlement and relate to the residential sector. If you purchase an off-plan object, you will be able to apply for a visa after putting the property into operation.

The applicant will also have to pay an administrative fee, Emirates ID fee, and medical insurance. On average, the associated expenses for obtaining an investor visa amount to about 15,500 AED (about $4,200). The extension and the sponsorship of relatives cost from 250 to 6,000 AED (from $70 to $1,600), depending on the type of visa.

Dubai Real Estate. What You Can Buy

In 2021, Dubai real estate sellers made $41 billion. This amount exceeds the annual budget of some small countries, such as Estonia or Latvia. Naturally, you can find all types of real estate in such a large-scale market, from compact apartments to luxury mansions.

According to Bayut & dubizzle, the most popular areas for buying budget apartments in Dubai in 2021 were Jumeirah Village Circle, Jumeirah Lake Towers, and Dubai Silicon Oasis. The latter is the most affordable, prices for apartments in Dubai Silicon Oasis start at $121,000. Another affordable district is Arjan, located near Motor city: the starting price of the studio here is $118,000. 

The most popular areas for buying higher–class apartments are Dubai Marina, Palm Jumeirah, Downtown Dubai, and Business Bay. The attention is now on the Dubai Creek Harbour area, where a new community is developing with an unsurpassed view of the Burj Khalifa and access to a private beach.

Dubai Creek Harbour

Prices in the coastal area of Dubai Marina and Business Bay are approximately at the same level. The central locations of Downtown Dubai and Palm Jumeirah offer the most expensive and luxury facilities.

According to Property Finder, the most profitable districts in Dubai for real estate investment are Dubai Marina, DAMAC Hills, Discovery Gardens, and International City.

In Dubai Marina, where foreigners most often buy apartments for rent, the average price of a studio starts from $220,000, one-bedroom apartments - from $350,000. An alternative is the JLT (Jumeirah Lakes Towers) area, located opposite Dubai Marina: you can buy a one-bedroom apartment in a new complex at $250,000.

What you can buy in Dubai right now:

For those who are looking for a location to buy a villa or a townhouse, Stage Properties experts recommend paying attention to the family areas of Dubailand and DAMAC Hills 2. The starting price of a finished townhouse in DAMAC Hills 2 is $218,000. The popularity of a new community from the developer Damac – Damac Lagoons, which includes eight different clusters on the shore of the Lagoon, is also growing.

The middle price segment includes Arabian Ranches from the developer Emaar, which offers a wide selection of townhouses and villas. The starting price of townhouses in this area is $450,000.

It is worth highlighting Dubai Hills, Arabian Ranches, and Palm Jumeirah among other luxury locations. The starting price of the mansion here is $1.1 million.

Dubai real estate remains a profitable investment object with high ROI rates. The annual rental income can range from 6% to 12%.

Foreigners can get loans from banks and installments from developers. Therefore, you can become a homeowner in Dubai, even without having the entire amount necessary for the transaction.

Mortgage

Foreign first-time buyers in Dubai can take out a loan for up to 80% of the cost of the object. The maximum loan term is 25 years. The average interest rate at the beginning of 2022 is 3.5%.

Ghassan Saliba CEO Stage Properties
 It is better to take a longer mortgage because it expands your credit opportunities. Although the total amount of paid loan interest will increase in this case, the monthly payments will be smaller. If you decide to pay off the mortgage before the deadline, you will always be able to make additional payments (no more than 10% of the principal amount to avoid a fine).

In addition to the initial payment (20% of the property price), it is worth remembering several additional costs when buying real estate in Dubai.

  • DLD fee (Dubai Land Department) – 4% of the property value.
  • DLD administrative fees are $157.9 for apartments and offices, $117 for land plots, and $10.89 for off-plan real estate.
  • Registration fees for a real estate purchase worth less than $136,200 – $545 + 5% VAT.
  • Registration fees for the purchase of real estate worth more than $136,200 – $1,089 + 5% VAT.
  • The mortgage registration fee is up to 0.25% of the loan amount + $79.
  • Registration of ownership – $68.

In addition, life insurance is a prerequisite for obtaining a loan in the UAE. The minimum wage required to purchase a property in Dubai depends on many factors, including the real estate type and location. 

Ghassan Saliba CEO Stage Properties
 Lots of financial institutions in the UAE set the minimum level of earnings for obtaining a loan at $4,000. Nevertheless, several banks, such as Emirates NBD and CBD, accept applications from people with lower incomes. Affordable apartments are offered in Dubai Silicon Oasis with an initial cost of $121,500. Thus, receiving a monthly income of $1,500, you can afford to buy a property in this area of Dubai.
Dubai Pproperties
Installments From the Developer

Most complexes in Dubai enter the market at the off-plan stage, that is, at the very beginning of construction or even at the project stage. Developers usually offer such facilities in installments (payment plan): the initial payment is from 5% to 40%, the remaining amount is divided into several tranches and paid during the period established by the contract.

What is interesting: in Dubai, you can arrange installments for a long time (up to seven to ten years) and continue to pay the cost of the object even after commissioning. Sometimes you can pay in stages even for a ready-made object.

Ghassan Saliba CEO Stage Properties
 In Dubai, you are allowed to pay for real estate with cryptocurrency. Many large developers accept bitcoins and other digital money. But such transactions have their specifics. If you consider this option, choose only licensed real estate agencies and crypto transaction management companies with an impeccable reputation.
Real Estate Transactions. How to Buy an Apartment Now

Dubai has one of the highest–tech real estate markets. Even before the coronavirus, remote transactions were common here and buying villas and apartments online became mainstream during the pandemic.

Dubai Agency RERA (Real Estate Regulatory Authority – the body regulating the real estate sector) monitors the implementation of legislation - checks the registration of projects, real estate developers, real estate agencies.

How to Buy an Apartment in Dubai

The realtor will help to study all the nuances even at the search stage, select objects that correspond to the estimated budget, organize meetings to inspect suitable options or online screenings, and help discuss the terms of sale.

Each transaction stage can be carried out without a visit to the country. However, Dubai is open, and the UAE accepts foreigners.

Please note
Residents of Russia experience several temporary restrictions on currency transactions starting with March 2022. In particular, they prohibited transferring funds to their accounts abroad and extorting cash from the country of $10,000. However, according to the explanation of the Central Bank of Russia, the ban does not apply to the purchase of goods, including real estate, and payment for services abroad, and the United Arab Emirates is not included in the list of "unfriendly" countries. That means that transactions with residents of Russia continue to take place. Everything is "business as usual" for citizens of other countries: the Dubai market is open, it is allowed to buy objects of any type.
Ghassan Saliba CEO Stage Properties
 Stage Properties specialists will help you buy real estate on the secondary market or at the off-plan stage, get a mortgage, find a rental home, or, on the contrary, rent out your property. Our main principle is a careful selection of real estate. We offer customers only high-quality complexes in which they would like to invest at an adequate price for the market. Our team consists of specialists with 17 years of experience in the UAE real estate market. Contact us: we will help you make a profitable deal with Dubai real estate.
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