Can anyone buy property in Dubai?

Can Anyone Buy Property in Dubai?

It’s no secret that Dubai is one of the world’s most picturesque places. However, it’s also one of the world’s most expensive places to live. You might have already guessed that this means property prices in Dubai are skyrocketing, but you can still purchase the property if you know where to look.

What kind of properties are available?

The price range for apartments ranges from around $150,000 and up. These properties come in various sizes, from studios to three bedrooms. Prices increase with the size of the apartment, so for larger apartments, expect to pay more.
Some larger apartments can be rented out by the day or week. These types of properties range in price from $150/night up to $5,000/night especially Marina.

Newer condominiums are on the rise and average about $250,000 to $500,000 depending on the location and size of the unit.

These condo units can range from studios to two bedrooms. If you’re looking for a brand new condo in a more popular area of towns like Jumeirah Beach Residence or The Palm Jumeirah, expect to pay about $425,000 for a two-bedroom condo.

If you’re looking to buy a home in Dubai, the real estate market is very different than most other places. The new laws are making it difficult to purchase property, so there are fewer and fewer properties for sale. That means you will pay higher prices if you do decide to purchase a property in Dubai.

Why should I buy property if buying a car would be cheaper?

While buying a car is more expensive, it’s worth the extra cost if you need to move quickly or frequently. Furthermore, buying a home in Dubai is about lifestyle and convenience, not just price.
If you’re looking to live in Dubai for a few years before moving elsewhere, buying property will be more expensive than renting. However, do remember that the compound needs to be maintained by the property owner. Renting an apartment or condominium will most likely go up much faster over time than purchasing an existing property.

How much do I actually need to spend?

A lot of people are shocked to find out that buying property in Dubai is actually a lot more expensive than purchasing a similar-sized property somewhere else. It’s best to look at the price range of comparable properties in Dubai and then compare them to the cost of renting an equivalent home.

If you’re not looking for the highest-end lifestyle, buying a home can be more affordable.
Other costs to consider:

• Landscaping: Landscaping can cost up to $10,000 to have done. *Hiring a housekeeper for monthly maintenance is around $150 – $200 a month.
• Professional cleaning costs vary, but they’re typically around $150-$200.
• Maintaining a car is usually about $110/month for a newer vehicle or between $40 and $80 for older models.
• Pet care can range anywhere from about $500 for a small dog to $2,000 for a big dog.
• Some utility costs will depend on the area you’re in.
• Electricity costs about $50-$150 per month, whereas water starts around $40-50 and goes up to around $70-$100 depending on the season and how much you’re using it. *
• A one-stop-shop for school fees, clothing, etc. is about $200.

What are the benefits of buying property in Dubai?

In Dubai, you can benefit from one of the world’s most stable economies. The United Arab Emirates is currently ranked number one on the World Economic Forum’s Global Competitiveness Index. The country has also been rated as having the best quality of life in the Middle East and North Africa region by Mercer.

Property prices are often pegged to oil prices, but with Dubai’s goal to diversify its economy away from oil and gas there is less risk than many other places around the world. The Dubai government has set a target for all buildings to be carbon-neutral by 2050, and there is practically no waste in the city – almost all of it is recycled.

Dubai is a very international place, with English commonly spoken, even though Arabic remains the official language. The mix of different nationalities can make buying property in Dubai a truly international and diverse experience.

It is important to note that the Australian Government Overseas Investment Review Board (OIREB) regulates foreign investment in Australian assets and effectively prevents Australians from buying property overseas. Fortunately, you can sidestep this by placing your property under the jurisdiction of a foreign government – which Dubai is – if you are not an Australian citizen.

Dubai has a temperate climate with a mean annual temperature of around 20 degrees celsius and little rainfall. It is known for its desert flora which includes date palm, and a variety of trees including the camel thistle, heavenly bamboo.

There are over 7 million visitors to Dubai every year and the city is welcoming to tourists both from abroad and within the UAE. The location in the desert means that Dubai is very self-sufficient for water (there is freshwater specifically provided for non-drinking purposes in some areas) and it has been able to bring down its cost of living compared to other cities.

Dubai is a tax-free zone for the next 20 years, so there is no income or capital gains tax and no death duties. A 15% municipality fee applies to all properties purchased in Dubai however the site fee of 2.5% may be waived if you choose to build your own property as an owner-occupier. The cost of building in Dubai is roughly one-third of what it would cost to build in Australia and there are paid holidays for companies that employ large numbers of nationals, including public holidays.

Some benefits of buying property in Dubai include:
Attractive economic climate Money being spent on infrastructure, including the massive Marina and Emirates Hotels & Resorts developments Channeling investment into the country, which is good for the wider economy Helpful and open government, including the recently improved ways of getting around – Dubai Metro Ultra-modern architecture with a lot of marble and glass Expatriate benefits such as legal residency or citizenship Social benefits including education for children, scholarships, free healthcare as an investor for expatriates Diversifying your portfolio by investing in property overseas.

The disadvantage to Dubai property ownership is that it is not always possible to open a bank account in the UAE, which means you need to use an international money transfer service to transfer funds into your account.

It will also cost more than owning property in Australia if you are an expatriate working in the UAE as Dubai does not offer free health care and public education, as well as other social benefits. On the flip side, property in Dubai has lucrative rental yields since it is being bought by foreigners for occupancy for multiple years.