More and more people are choosing to move to one of the many stunning cities in the UAE; this could be due to the sun, sand, and sea, but there are also great malls and a thriving leisure industry. If you are considering a move, you may be looking to buy land or property, which has only been a possibility since 2002 – thanks to the Freehold Law. Foreigners owning land and property in the Emirates is not uncommon as just over seventy percent of the population is made up of ex-pats.
That being said, a lot of residents rent instead of buying. This is for many reasons, most notably an uncertainty on how long they will stay in the UAE and the fact that a twenty-five percent deposit is required when buying a home. If you don’t consider these obstacles, owning land or property can kickstart your new life or simply be a great investment opportunity.
Although, there are important intricacies that need understanding before you continue down this route. Read on for more information.
The Property Market
The property market, in Dubai especially, is deemed steady there isn’t really a good or bad time to buy as the market is generally stable. There has been turmoil in the past; there was a significant dip in house prices between 2014 and 2016 all though it has since recovered. Buying over renting – where possible – is always the better idea as renting provides no return on investment it is dead money.
Finding Property
There are lots of options when looking for property in the UAE. The easiest way to understand what types of properties are out there by going through a property developer. Aldar.Com has an expansive property portfolio that can help you narrow down what type of property you want and give you a better idea of the different areas and amenities.
There are three types of properties that a foreigner can choose from. Firstly, freehold properties, these are the most sought after. They are entirely yours and can be sold, rented, or passed on as you wish. Then there are Usufruct properties; these are essentially long-term leases – you can do whatever you want to the property bar destroying it. The leases can last from 10-100 years. Lastly, there are commonhold properties; these are much the same as freehold properties, except they are usually apartments and often require additional maintenance fees.
Key Steps
To successfully own property in the UAE, there are some things you must do. Some of these are obvious such as deciding what type of property you want and beginning your search for it. You must also make sure that you are eligible to purchase land, are you legally allowed to live there, and do you have a steady salary? Ensure you have enough for the deposit and try to acquire a mortgage or home loan from a reputable institution. After this, it is simply a case of transferring deeds and paying the appropriate land registry taxes.
In Conclusion
Buying land in the UAE is a fantastic investment that can lead to many different opportunities. Over the last few years, the UAE has become a hugely sought-after location and undergone major renovations to turn it into the hot spot that it is today. So, if you’re looking to buy in a foreign country, you won’t do much better.