Every year Dubai attracts a lot of property investments from all over the globe. With more and more people moving into Dubai to work, invest and live in, the Real Estate industry has taken off recording an ascending transaction pattern. A lot of people who will buy properties will be brand new to this property market and we would like to address a few of the questions that are frequently asked.
What are the ROI properties made in Dubai?
This question is the most frequently asked question. Generally it is between 4% and 8%. While the location and the number of bedrooms are main reasons to determine this percentage, it is a higher ROI compared to major property markets around the world such as London, Singapore, Hong Kong, and Sydney, which returns around 3%.
What are the ROIs for long term vs short term rentals?
While long term rentals are secure, the shorter term rentals provide higher ROIs than the long term. While 4%-6% is the regular range for a property on long term rental, short term rentals can generate much higher yield.
What is the minimum down-payment for a property in Dubai?
As a minimum down payment, investors can go as low as 20,000 Dirhams as the Token Price to secure a unit + DLD fees. With flexible payment plans that go as low as 1% monthly and go as far as 3-5 years after the property is handed over, investors can buy property in Dubai without upfront payments being a burden.
How can a buyer resell their property?
A buyer can put the property in the market for sale after they have covered 30% of the property value.
Can investors access financial services in Dubai easily?
Many banks as well as other financial services are readily available to provide financial solutions including mortgages and currency exchanges. These services are curated to assist local and international investors dealing with multiple currencies.
Are the buildings Pet-Friendly?
Almost every building is pet friendly, supporting a lifestyle that welcomes all types of people to invest and live in Dubai.
What are the fees related to registration?
Dubai Land department charges 4% of the property value and AED 850 as admin fees to process the Title Deed.
The registration fees for the property will be AED 2,000 excluding the 5% VAT for properties that are worth under AED 500,000. A fee of AED 4,000 excluding the 5% VAT are for properties above AED 500,000.
If you have any other questions that need to be addressed before buying a property in Dubai, you are more than welcome to contact us or visit us at ANAROCK Middle East offices to have a chat about it.