Why Invest In Dubai?
Dubai is in the process of creating an international property market from scratch, with foreign ownership of freehold. Thus buyers are given an exceptionally good deal to encourage them to be pioneers.
Tax Free Income.
Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a 20 year track record of strong economic growth and will continue to attract foreign and regional inward investment. No Corporate Tax, No Income Tax & No Capital Gains Tax.
International Business Hub .
Long recognised as the leading regional trading hub of the Middle East, Dubai has now become an international business and re-export center. The country has developed rapidly over the past 10 years and has transformed itself from an oil dependent regional entrepot into a highly diversified international business center of global significance. Dubai is on the radar screen of the world!
Over 6.9 million tourists visited Dubai in 2014 and this figure is expected to grow to in excess of 15 million by 2015. Dubai is going from strength to strength.
Should I buy or rent commercial property in Dubai?
This really depends on the short and long-term objectives of your business. Renting a property gives the tenant the flexibility of expanding the size, moving locations, or even shutting shop without having exposure to the property market. On the other hand, purchasing a property protects the occupier from rent escalations, eviction notices, or other unreasonable landlord demands and allows scope for capital appreciation.
Which location is ideally suited for my business?
While offices tend to be focused in locations, such as, Sheikh Zayed Road, Business Bay, and Jumeirah Lake Towers, warehouses and labour camps have been centric towards industrial locations, such as, Al Quoz and Dubai Investment Park.
Can I buy anywhere in Dubai?
If you are a non-UAE national, you can only buy in areas designated specifically for expatriate freehold and leasehold sales.
Can I get financing in the UAE?
Yes, you can get finance for commercial property in the same way as residential. Both individuals and firms can borrow. Provided you have the right credentials and satisfy the simple requirements, lenders are willing to finance a purchase in a number of locations across the city.
Can a foreigner hold a freehold title in Dubai?
Yes. Freehold ownership of land and property for UAE and GCC citizens has been legalised, while allowing the same rights to non-GCC expatriates to pre-designated areas that will be approved by the Ruler of Dubai. In Dubai, commercial freehold property is available in many areas, including Business Bay, Jumeirah Lake Towers, Tecom, and DIFC.
Do I need commercial space to apply for a trade license?
Yes, the business requires a rented or owned commercial property in order to secure a trade license.
Does ownership of real estate in Dubai entitle me to apply for a Residence Visa?
Yes. Under Review by the UAE government.
What are the general steps involved in purchasing off-plan property in Dubai?
- Complete a reservation form and include a copy of your passport.
- Transfer the required down payment.
- On receipt of the contract from the developer, review, sign and return same.
- Make installment payments as per the agreed payment terms.
What measures are in place to protect my investment in off-plan projects?
In July 2007, the Dubai government issued Law No. 8 "Concerning Guarantee Accounts of Real Estate Development in the Emirate of Dubai". This law states that developers receiving off-plan payments for property that is not yet complete must open a guarantee account, commonly known as Escrow or Trust accounts. Payments received from buyers must then be deposited in these accounts, which are operated by approved banks. In order to withdraw funds from such an account, the developer must apply to the trust account manager with documentary evidence from an approved consultant that an agreed stage of construction has been reached. The Dubai Land Department, who oversee the enforcement of this law, must be informed every time funds are being released from the account to the developer.
What is RERA?
The Real Estate Regulatory Authority - RERA - has been formed under the affiliation of the Dubai Land Department. RERA will regulate real estate activities in Dubai (including the escrow law). With administrative and financial autonomy, RERA will supervise and regulate real estate developers, real estate agents, financiers and co-owners' associations.
Why have RERA and Escrow laws been founded?
RERA and escrow laws have been founded in order to eliminate the risks involved in Dubai real estate market hitherto. These had amounted to Property developers with no clear title to the development or the corresponding land.
- Lack of a proper record of real estate related activities in Dubai
- Lack of uniformity in rules and regulations concerning real estate
- Risks in the mortgage market that go against the property buyer's interests
- Uncertainty involved in the completion of a real estate project