Property investments in the United Arab Emirates are booming. Dubai is one of the top real estate investment destinations for global investors, thanks to its cosmopolitan population, excellent rental yields and high resale values. The glitzy commercial capital is also known for its affordable luxury quotient, which makes it an attractive investment option for expats.
The city’s enviable weather also plays a role in its popularity, with sunshine all year round and low humidity levels. As a result, many expats are opting to buy properties in Dubai for long-term use rather than renting them out.
When purchasing property in Dubai, there are two main types: freehold and leasehold. A freehold property gives you complete ownership of your home and land. However, you will be able to sell the property only after an agreed period of time. The other type of real estate is a leasehold, which gives you the right to build on the land and use it for up to 50 years. This kind of contract is common in the UAE, and the government has created a special law to regulate it.
SPA stands for Sale and Purchase Agreement, which is a document that outlines the terms of a sale between the buyer and seller. It is drafted by lawyers and is legally binding. A SPA is not required for every property transaction in Dubai, but it’s an important step for international investors. It is best to have a lawyer draft the SPA for you to ensure that your interests are protected.
Another essential term to know in real estate Dubai is OASIS, or the Occupancy Area Identification System. This is an official ID that gives you permission to occupy your property. In addition, it gives you access to various services, such as water and electricity.
Real estate in Dubai is highly regulated. The governing body, RERA, was founded in 2007 by Sheikh Mohammed Bin Rashed Al Maktoum; the UAE’s vice president and prime minister. It was established to enhance transparency in the real estate sector and increase foreign investments. RERA’s mission is to protect the rights and interests of property owners in Dubai, while ensuring sustainable growth of the market.
The city’s many upscale neighborhoods offer a wide variety of residential and commercial options for investors. Some of the most popular areas include Palm Jumeirah, Downtown Dubai, Emirates Hills and Dubai Marina. Whether you’re looking for a waterfront apartment, a luxurious villa or a retail space, there’s something to fit your requirements.
If you’re interested in buying a property in Dubai, contact us at Engel & Volkers. Our team of experts can help you find the right property for your needs and budget. We have offices across the Middle East and are a trusted partner for both local and international clients. We can also help you navigate the complex legal process of buying a property abroad. Contact us today to get started.