Our compatriots have begun to acquire real estate in the UAE since 2002. EXACTLY THERE WAS THE STARTING BUILDING PROJECTS OF DUBAI STARTED, AND THE FOREIGN INVESTORS WAS GIVEN A “GREEN LIGHT” TO BUY PROPERTY IN THE NEW BUILDINGS. ALREADY IN 2006-2007, THE ARAB EMIRATES BECAME A RECOGNIZED LEADER FOR THE DEVELOPMENT OF THE REAL ESTATE MARKET, WHICH MAKED THE RUSSIANS MORE TO STRENGTHEN THEIR ACTIVITY IN THIS DIRECTION. TODAY, THE RUSSIAN-SPEAKING POPULATION TAKES ONE OF THE FIRST PLACES AMONG THE TOTAL NUMBER OF REAL ESTATE BUYERS IN THIS COUNTRY. Dry statistics show that the largest number of buyers of real estate in the UAE are the owners of small and medium-sized businesses with annual incomes of US $ 100 thousand and above. It is they who study the market most thoroughly, consider various offers, and make only balanced and thoughtful decisions. Recently, buyers from the non-profit sector have joined them, including employees of large state corporations and officials who, for obvious reasons, do not disclose information about themselves.
Historically, Dubai occupies the first place in terms of sales in the UAE real estate market. Its increased attractiveness for buyers is due to a number of factors:
- The right of full ownership of real estate for foreigners, established by law, is freehold (freehold), a developed legislative framework, a simple and transparent process for registering purchase and sale transactions;
- The ability to diversify assets through the acquisition of real estate in one of the fastest growing and safest corners of the world, which has good prospects for growth in value;
- Stable net annual income from lawful rental of property, which is estimated at an average of 5-10% per annum, as well as the absence of additional efforts to manage real estate;
- A carefully designed design of residential complexes and the surrounding landscape, which is the result of the work of the best European designers;
- The interior decoration of apartments and turnkey villas with built-in furniture and plumbing, which makes the housing fully ready for living immediately after the acquisition;
- Low cost of ownership of real estate. In the UAE there are no taxes on property and real estate, value added tax, as well as taxes on personal income and corporate profits;
- Confidentiality of transactions, non-public information about a person, deposits in banks and acquired property for third parties;
- Ownership of property in a popular business and tourist center of a world level with a developed infrastructure;
- Convenient air travel at affordable prices, allowing you to combine accommodation, for example, in Moscow and the UAE without changing the time zone;
- The ability to quickly, in 1-2 weeks, apply for a resident visa with the right of permanent residence in the UAE;
- The highest level of personal security;
- A comfortable sunny climate and warm sea, which, coupled with well-air-conditioned rooms of buildings and a well-thought-out microclimate of the rooms, create opportunities for comfortable year-round living.
To date, the largest demand among buyers is residential real estate, mainly apartments in apartment buildings. As you know, Dubai is a city of visitors. More than 90% of the two million inhabitants of the metropolis are expatriates. Everyone needs to live, work, relax somewhere. Therefore, the rental market is very developed. Housing in popular projects is in high demand, and rental income in Dubai is two to three times higher than in developed markets, for example, Europe. In addition, there are no income taxes or property taxes. All this makes investment in residential real estate very attractive.
In Dubai, the construction of office space, which began in the pre-crisis years, has also resumed. In the very near future they will be offered to the real estate market. However, it should be noted that in terms of growth in value and rental income, investments in commercial real estate look less attractive than in housing. In any case, for the next few years.
Private customers purchasing housing for their own needs are most in demand for seasonal vacation apartments managed by a local company. For these purposes, resort property by the sea is best suited, providing a high return on investment. Renting apartments in the UAE according to this scheme has many advantages for owners: on the one hand, high rental income, on the other hand, a minimum of maintenance and management of real estate.
The most popular among our compatriots are such prestigious coastal areas of Dubai as Dubai Marina, The Palm Jumeirah and a large project located directly on the seashore - Jumeirah Beach Residence. Here, as a rule, there are no special problems when buying, selling and renting out housing, including the scheme of its seasonal use by the owners themselves. Real estate in these areas is the most liquid for investors and more comfortable for personal residence.
The Palm Jumeirah is a bulk island, shaped like a date palm with 17 branches. Actually, the base of the palm tree consists of three elements: the "crescent" (Crescent), the "branches" (Fronds) and the "trunk" (Trunk). On the "crescent" are the world-famous five-star hotels Atlantis, Kempinski, One and Only, Jumeirah Zabeel Saray and others. On the "branches" - magnificent villas with private beaches, and on the "trunk" - luxury multi-apartment projects. The Palm Jumeirah Island has enormous dimensions: the diameter of the "crescent" reaches 7 km, and the length of the external breakwater is about 12 km, and all this man-made beauty is visible to the naked eye from space.
The cost of a one-bedroom apartment of 100 square meters. m in the popular multi-apartment complex Shoreline Apartments, located on the "trunk" and having a private beach, is US $ 300-500 thousand, two-bedroom apartments - US $ 380-685 thousand. Luxury One-Bedroom Apartment 122 Sq. m in the twin complexes Oceana Residence and Tiara Residence will cost customers in the amount of US $ 530 to US $ 630 thousand. The cost of villas on the "branches" of The Palm Jumeirah ranging from 450 to 650 square meters. m will be, on average, from US $ 2.4 to 5.5 million. Estimated net annual income from renting this kind of real estate will vary from 4 to 6% of the amount of investment.
The luxurious coastal area of Dubai Marina is a unique “city in the city”, the heart of “new Dubai”, where life is in full swing. It is rightfully a favorite place for many of our compatriots.
Dubai Marina is located on the shores of the Persian Gulf around an artificial yacht harbor and offers a wide selection of exclusive amenities for relaxation, shopping and entertainment. Real estate in this area is represented by both luxury apartments and very affordable residential complexes. The cost of housing in the Dubai Marina area is, on average, US $ 125-190 thousand per studio area of 45 square meters. m, US $ 205-300 thousand for a one-bedroom apartment of 80 square meters. m, US $ 320-500 thousand for a two-bedroom apartment of 120 sq.m.
More modest cost projects are located from the sea in 15-20 minutes by car. Such areas are cozy areas where, in addition to the residential buildings themselves, part of the area is reserved for creating picturesque landscapes, which allows all residents to enjoy the well-groomed surrounding area.
All apartments are finished turnkey, equipped with built-in kitchen furniture, comfortable lighting, equipped with modern sanitary and household appliances.
Budget projects are presented mainly by studios and one-bedroom apartments at very competitive prices. The most popular low-cost areas include, first of all, Discovery Gardens. Residential property prices here are significantly lower than in the nearby Dubai Marina area and do not exceed US $ 150 thousand for a one-bedroom apartment.
With regard to Dubai, it can be stated with confidence that the bottom of the market decline has passed, and in the most popular areas there is a moderate increase in prices for both sales and rents. Most experts agree that over the next few years in the emirate we will see a smooth growth of the market. Over the past three years, not a single new residential project has been laid down in Dubai.
At the same time, according to the Dubai Statistical Center, the population of the emirate over the same period increased by 300 thousand inhabitants and continues to increase. This is facilitated by political stability, security, a favorable investment climate, the absence of taxes and restrictions on the movement of capital, as well as the cost of doing business significantly reduced as a result of the crisis, including office rent, staff costs, etc. All this attracts a business that in turn, human resources are required. The market is in the process of absorbing surpluses of real estate whose construction had begun even before the crisis.
Since it refers to assets that take considerable time to build (the building construction cycle takes, on average, 2-3 years), a shortage will inevitably arise in this segment in the foreseeable future.
That is why we can confidently talk about an optimistic scenario for the development of the situation on the real estate market in Dubai.
You can get any additional information about the acquisition and management of your property in Dubai from the specialists of IMEX Real Estate by tel. in Moscow +7 495 5100008, toll-free number in the UAE 800-IMEX (800-4639) or by sending a request by e-mail [email protected]
