Dubai has a lot to offer in terms of residential property, in fact, the Middle East property market is on the high, offering high living standards and amenities. There are a lot of options when it comes to the type of property which ranges from villas, apartments and holiday homes. It is beneficial for those looking for a decent place to stay as well as those who are searching for a good investment opportunity.
It is also legal for foreigners to invest in the property market. Thus, those looking to move to Dubai to enjoy life or for work or business should know that it is perfectly legal for them to buy a property in Dubai.
Renting a Property
There are many advantages of renting a property in Dubai; one of the main reasons for people to opt for renting over buying is the lesser degree of commitment necessary. It offers a greater level of flexibility since no immediate large financial investment is necessary. On the other hand, landlords often place restrictions on the level of changes the tenant can make in the house. The other downfall of renting is that it will work out more expensive in the long term.
Here are a few other factors to consider:
- Renting saves using funds since buying a property means shelling out funds for the down payment at the time of buying.
- Many people opt to invest their income rather than invest in real estate.
- There are several platforms available to investors to use their money wisely and invest in multiple properties. This method helps one to diversify their investment and benefit from property invests.
- Renting a property allows one the flexibility of location and size of apartment or house since the requirements can change depending on many factors like their financial circumstances or work-related requirements.
Buying a Property
There are many advantages to buying a property; one of the biggest advantages is that it is a good long term investment. Owning a house gives one a sense of stability and security and helps them settle. Owning a house means one can benefit from being a landlord as well. At the same time, owning a house means additional expenses for the house and a long term load commitment to repay a load if they have opted for financial assistance.
Here are a few other factors to consider:
- For those planning to stay in Dubai on a long term basis; it is certainly a better idea to invest in a house.
- Investing in real estate is a safe and fruitful in the long term.
- Buying a property in Dubai cost lesser as compared to other major cities around the world like London, Hong Kong, New York, and Singapore.
- Dubai does not have any property tax, unlike just about every other major city.
- There are many benefits for one to buy a property in Dubai for investment due to the high yields.
- The monthly rent for a place will usually be much higher than the monthly loan repayment necessary in case of owning a property. However, buying a property does mean having to displace funds for the initial down payment and other home-owners expenses.
Facts about the Dubai Property Market
- Foreigners can buy property in Dubai since 2002.
- There are many benefits of property investment in Dubai as compared to other major cities around the world.
- In terms of security and stability, the UAE ranks high in terms of world peace.
- Dubai has a good economy and is a politically stable country.
- Dubai is in a strategic location and attracts foreign investors from countries all around the world.
- It is a major hub for meetings, exhibitions, major conferences, besides which it is a popular tourist destination.
The Verdict
To buy a property is highly rewarding and is considered as a good investment; however, one needs to assess their situation before committing to buying a house in Dubai. It is a good idea to get your own property if the duration of stay in Dubai is expected to be high; your financial situation is good and the market situation is good too. For those who like to have a greater degree of control over their property and like to modify and customize and decorate on a large scale; it is best to buy your own property.
It may not be beneficial to buy a property for someone who is not financially well off and does not have long term plans. Buying a house means one has to set aside funds for the initial investment and several other expenses as a home-owners. Many people prefer renting since it offers more flexibility however buying a property means there is a greater sense of stability and security.
