Differentiate your investment
Amid the global liquidity crisis and the flood of bad news, there is good news - in Dubai you can still get a loan to buy real estate.
Among the Arab countries, the United Arab Emirates occupies a leading position in terms of investment attractiveness. Investments in real estate occupy first place here in terms of foreign investment. It should be noted that for foreigners real estate in the UAE became available only a few years ago, and today more than half of foreign buyers of real estate are citizens of Russia and Kazakhstan. Moreover, most of them acquire real estate in Dubai.
A place under the sun
The main factors contributing to the high activity in the real estate market in Dubai are the status of a tax-free zone, guarantees of completion of construction, the possibility of obtaining a residence visa for a family in case of buying a property. Real estate prices in Dubai rise up to 50% per year, so real estate investments here are much more attractive than bank deposits, especially now, amid the outbreak of the global financial crisis.
According to analysts, the return on investment in real estate in Dubai is up to 80% per annum. According to studies of the real estate market in Dubai, conducted by the Association of Independent Companies Colliers International Property Consultants, the prospects for its development look very optimistic.
Despite the outbreak of the global crisis, a fundamental analysis shows that the Dubai real estate market is isolated from world problems due to the application of very archaic but reliable principles of “Sharia” refinancing, which did not allow operating with mortgage sub-financial instruments, involving only real money or end consumers on the real estate market, and not a crowd of high-risk investors - marginal speculators.
A positive forecast for the development of the UAE real estate market in the medium term (3 - 5 years) is also due to the socio-economic conditions observed in the country, namely:
- government programs for refinancing the real economy;
- demographic trends, in particular the accelerated growth rate of the population of the Emirates, both due to the birth rate and due to the influx of foreigners;
- the presence of highly qualified specialists and healthcare institutions and a developed system of universal health insurance;
- the rapid development of world-class retail facilities such as Mall of the Emirates, Marina Mall, Dubai Mall, etc.
Modern Dubai is a regional center for leisure and entertainment, international business, education and the development of new technologies. Real estate in Dubai is very diverse: you can choose housing for every taste. Only here you can buy luxury luxury apartments in skyscrapers, and at the same time find a small, comfortable apartment on the coast at a very reasonable price.
The investment attractiveness of Dubai is primarily due to the high pace of construction and migration, and as a result - a steady increase in prices for residential and commercial real estate with guaranteed rental income.
The uniqueness of construction projects, in particular on the artificial islands, also plays a significant role. In general, Dubai is a leading regional commercial center with a modern infrastructure and an upscale business environment and provides investors with an excellent platform for creating a transnational global business, and political and economic stability and flexible tax policies are even more attractive for living and working in this city.
Dubai is one of the safest places for real estate transactions. Back in 1960, the Dubai Land Department was created here to protect the right to land and private property, and last year, the corresponding body, the Real Estate Regulatory Agency (RERA), an agency that regulates operations in the field, was created within the department. UAE real estate and providing guarantees to sellers and buyers of real estate. Two more laws passed last year regulate the relationship between the landlord and the tenant (Landlords & Tenants - Law No. 26) and the rights of owners to joint ownership and inheritance of real estate (Law No. 26). All these legislative acts and the measures provided for by them are aimed at combating the illegal actions of agents - brokers, which ultimately contributes to the growth of professionalism of realtors and the civilized conduct of business in the real estate market in the UAE.
Thus, all real estate transactions are practically guaranteed by the state, and investors receive fully legalized documents recognized by all, without exception, international organizations and financial institutions.
Redistribute Your Opportunities
In general, the procedure for lending to buying property in Dubai is standard. At the end of November, as part of the Millionare Fair exhibition in Russia, our experts will provide comprehensive assistance in selecting the property you are interested in and choosing a source of financing.
In addition, we have developed a dynamic and reliable investment scheme: attracting investments asset management (risk, liquidity, asset diversification). We have specially prepared options for the allocation of funds taking into account the short-term investment strategy with immediate return of the client's funds before the next payment, or long-term investments with the return of funds in a year, two or more, providing stable monthly income for a couple of years in advance.
The following options are available for placing your capital in real estate transactions in Dubai:
Short-term investments (from 6 months to 1 year)
This is a purchase of real estate under construction. Buyers will be provided with an interest-free installment plan, most often for 1.5-2 years. The initial contribution is usually 10-15% of the total cost. Perhaps equity in houses under construction. Investors earn this way: they purchase meters under construction at an early stage and resell the apartments after the start of construction, when the price rises by the same 10-15%. Thus, the invested seed capital doubles. These operations are all the more attractive because there are no property taxes in the country. Statistics of recent years show that this provides an income of 60% per annum.
Long-term investments (from 1 year to 3 years)
Currently, prices in the emirate of Dubai are set at about three-plus thousand dollars per square meter. meter and continue to grow, which is still much lower than world and Moscow real estate prices. All this allows you to declare a yield of 50% per annum, depending on the project.
Getting a stable income: the acquisition of real estate at an early stage or at the stage of completion of construction for the purpose of leasing. The income for annual rental without furniture is 8-12% of the cost of the apartment per year, depending on the project. The return on investment is from 5 to 7 years. Apartments can be rented accordingly for US $ 2,000-6,000 per month (usually payment will be charged in advance every 3, 6 or 12 months).
Buying a property for residency or resale at a higher price
The capitalization of finished housing real estate is up to 20% per annum. The market price of real estate rises as the completion of construction is approaching and may increase by 100%. The investment payback period is 1-3 years. Of all foreign real estate, this is the most interesting direction, especially if you take into account the rate of price growth (50% per year) and high rents (rental demand is very high). Thus, real estate in Dubai can be very well earned for at least another two to three years.
The most prestigious objects of Dubai are the projects: Jumeirah Palm, Palm Jebel Ali, Dubai Marina, the coastal region of the Persian Gulf Madinat Al Arab, the new project Maritime City, Dubai Waterfront. All listed objects have the status of freehold (full private ownership of property in the absence of taxes on capital profit or income).
Special mention should be made of the Dubai Waterfront project.
This area today has perhaps the highest investment attractiveness, thanks to a carefully developed concept of integrated development. It is a whole city on the surface of the Persian Gulf, located on seven bulk islands, elongated in a chain and forming a crescent. The artificial archipelago adjoins the coast, all the islands are interconnected, as well as with the mainland, bridges and dams. The life of the area will be closely linked to water. A canal will pass through Madinat Al Arab (the coastal part), and a large harbor with moorings will provide great opportunities for yacht owners. The most famous architects from around the world were involved in the project, including Norman Foster, so the districts of the city will differ in style and height of buildings in low-rise and high-rise neighborhoods. In one of the key places of Waterfront - where the desert meets the sea, there is a complex of residential buildings Define Vision III.
It consists of five towers bordering the corner sections. All apartments of the four resident towers Define Vision 3 have balconies overlooking the canal along the promenade. The undoubted advantage of the project is that all the living rooms are designed with a view of the water surface, and not of the neighboring property. In addition, the location of the towers is such that it makes it possible to admire the sunset and sunrise from the apartment.
All these factors make it possible to argue that investing in this facility will allow investors to earn money and get the perfect place to live and develop their own business or simply improve the quality of life. The financial crisis, which washed away speculators and drowned the oligarchs with a huge tsunami, drew general attention to the man-made island of stability - Dubai Waterfront.
Dacha Real Estate at
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