The Dubai Real Estate market is really looking very propitious despite the disquiet the two years of the pandemic had set in. For the last two decades, Dubai has been growing economically, this growth is attributable to the growth of dominant sectors such as petroleum, architecture, construction, transportation, logistics, tourism, and real estate. And of the dominant sectors, real estate has contributed 13% to the Dubai economy in the year 2021.
The low cost of acquisition per square meter vis-a-vis other international cities, and the promise of a high ROI have appealed to and influenced investors buying decisions. As per a report by Mashreq, a lending company owned by the Al Ghurair family, the ESG factor will catalyse real-estate buying in the GCC countries for the next 10 years.
The Dubai government changed the laws to allow foreign investors to buy residential properties in 2002 and the government since then relaxed the laws further to motivate foreign real estate investors. To top it, apart from the ROI a residential property promises, a foreign buyer can also get a permanent residency by obtaining the ‘Golden Visa’ of Dubai. From the point of view of investment and the chance to obtain and Golden Visa, Dubai presents itself as a prime market. There are properties available in top-notch locations, such as Burj Dubai, Dubai Marina, Palm Jumeirah, Palm Jebel Ali, and Dubailand to name a few. Dubai offers properties in two categories to invest in, there are leasehold properties and there are freehold properties to purchase.
Whilst a leasehold property physically belongs to the purchaser, the purchaser does however have rights over the land it is constructed on. The land in this case is owned by the freeholder or the landlord who leases the property to the buyer for 99 years (or less), the lease term can be extended upon expiry. There are many options to buy a leasehold property in Dubai.
Sheik Maktoum introduced the freehold property ownership law in the year 2002, this law allows non-GCC foreigners to purchase and legally own the physical property and also the land it is built on. The purchaser is granted the title deed of the property by the Dubai Land Department (DLD). The freeholder is given the right to occupy, lease or sell the property on their will. And in the event of the demise of the freeholder the property can be inherited by their family members.
Albeit an investor looking at ROI from a real estate investment in Dubai can either purchase a leasehold or freehold property, for attaining a Golden Visa, an investor must invest in a freehold property. One cannot apply for a Golden Visa if the property is purchased not under the Visa guidelines. The minimum real estate investment required for getting a Golden Visa is 1 million AED or more, the visa guidelines also stipulate that an investor applying for a Golden Visa must procure properties from developers who are approved by the DLD and before the construction is complete a purchase from a secondary market will not be eligible as an investment for Golden Visa.
A visa is generally valid for 3 or 5 years and this is dependent on the amount of investment made by a foreign buyer. The minimum investment of AED 1 million allows grant of a Golden Visa for a period of 3 years, and an investment of AED 5 million and above allows a 5year validity to the Golden Visa. And these can be renewed upon expiry irrespective of the amount invested.
There are many bountiful properties available for purchase, including townhouses, villas, and apartments. It is very critical to buy the right property for full ownership and most importantly to obtain the Golden Visa. Please find below the steps for you to acquire the right property in Dubai in 2022 and beyond
A XIPHIAS consultant can assist you to find the right property matching the location of your preference, your lifestyle, and your budget. We further help you file your visa application and obtain the Golden Visa.
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