Dubai is multifaceted in many ways. The diversified city is known for its ultramodern architecture, record-breaking skyscrapers, luxury shopping scene and more. Dubai has a total of over 200 nationalities and the rising population reflects the Emirate’s growth as a dynamic tourism and economic hub.
From its buzzing nightlife, music scene, workforce, safety and more, many foreigners move or consider travelling to Dubai. So, we’ve compiled a list of most-asked questions from the internet:
Foreigners can't buy property in Dubai .... ?
Expats and non-GCC nationals are permitted to buy properties in designated freehold areas in Dubai. There are two types of real estate ownership for expats: freehold and leasehold property ownership.
Buying property is a relatively simple process without the permissions and legal hassles. It is also seen potentially as a profitable venture and an attractive investment for expats.
It's not worth buying a house .... ?
The diversified city continues to maintain its status as the destination for foreigners to visit and reside and offers enticing investment opportunities and the best long-term return. It is considered better as an investment among other top cities in the world, taking into account it’s tax-free. Also, it gives options of affordable housing among the myriad of luxury houses and upscale apartments for the budget-conscious and for families.
The city is amongst the highest rental yields, which averages to 7-10%, and is higher in cheaper areas or communities like Discovery Gardens, Jumeirah Village Circle, Dubai Investment Park and Dubai Residence Complex.
Dubai is spawning a vibrant entrepreneurial ecosystem, with its projects like Collective 2.0 and Executive Residences II, along with DMCC business licence benefits and offers. Additionally, with the new visa regulation, it has allowed any individual to take 100% ownership without having a local partner as well as handing in 51% stake in the mainland. The UAE cabinet has also granted long-term visas to certain expatriates.
As Expo 2020 is approaching, the real estate sector is only expected to continue flourishing further. There are many reasons why it’s worth investing or buying a house in Dubai.
There is no tax in Dubai .... ?
The UAE government implemented 5% VAT in the country from January 1, 2018. VAT is applied to the majority of transactions in goods and services.
There is tax on property .... ?
In the case of real estate, residential properties are exempt while commercial property such as offices, retail and even car parking includes a VAT charge in the UAE.
Our article ‘How Will VAT Affect The UAE Real Estate Sector?’ delves into VAT in more detail.
Dubai is not a good place to invest .... ?
Dubai is a safe city and offers all-round security. It is arguably one of the top cities that boasts world-class infrastructure. This year, it was ranked first in the Arab region on the 2019 World Happiness Report for the fifth consecutive year. Dubai has been included in the 'Top World Destinations 2019' list according to TripAdvisor.
It's very expensive to live in Dubai .... ?
It varies based on an individual’s lifestyle and preferences. Salaries, housing expenses and accommodations are some factors that determines how expensive life in Dubai will be for anyone. The real estate market is fast-changing and so properties may rise or fall in value faster or slower in the overall market. Usually, rental prices in Dubai are fairly high and some residents move outside of the city to find rent for much less. It was also recently reported that the majority of UAE salaries are set to increase this year.