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The pros and cons of buying a property in Dubai are always important concerns for all investors and people who want to invest in this city.
One of the fast-developing cities in the world, Dubai is renowned for its tall skyscrapers, picturesque waterfront tourist attractions, and some of the most appealing malls in the world.
Investors and homeowners are both interested in buying property in Dubai because of its ever-growing nature.
Pros and cons of buying a property in Dubai
This flourishing city has accommodated some great real estate projects that have attracted the attention of all investors. But like other sections, the real estate market in Dubai has its pros and cons.
If you want to buy a property in this city, it is better to become familiar with the pros and cons of buying a house in Dubai. The most important pros and cons of buying a property in Dubai include:
Pros
- Stable economy
- Innovation and technology
- Safety
- Upscale luxurious areas
- Constant development
- Dubai property visa
- Persuasive rental yield
- Availability of affordable off-plan options
1. Stable economy
Buying a property in a city with a stable economy is one of the most important advantages of investing in Dubai.
Dubai has secured its strength because of constant economic growth, flourishing real estate, and a wonderful potential to handle any economic challenges in the future.
Dubai has one of the fastest-developing economies in the world, making it a great investment option for local and foreign investors.
2. Innovation and technology
There is no doubt that Dubai is one of the most innovative cities in the world. It has evolved into a modern and advanced city very quickly.
Living in such a modern city has a level of comfort, convenience, and happiness that is difficult to experience in other cities.
3. Safety
There is no need to be worried about safety and security in Dubai. The government has set highly severe safety rules in the city for the residents.
While the crime rate has been on the rise in different parts of the world, Dubai’s safe and secure environment is a valuable advantage you will enjoy.
4. Upscale luxurious areas
To buy a good property in the real estate market of Dubai, find out what type of property you decide to purchase and for what reason.
Buying properties such as apartments, villas, shops, townhouses, or just a piece in the expensive and luxurious areas of Dubai has a higher return rate compared to other regions.
Finding a good property in a luxurious area will perhaps raise your profit in the future, particularly because the demand for property in such popular locations is always increasing.
5. Availability of affordable off-plan options
One of the clear advantages of purchasing off-plan property in Dubai is that the unbuilt projects are available at remarkably affordable prices.
The appealing payment plans and achievable offers make these projects a more profitable choice for investors.
Both first-time purchasers and experienced investors can take advantage of the amazing financial flexibility provided by off-plan real estate in Dubai.
6. Constant development
The government is always trying to make the city better and more modern. The steady development is another reason to purchase property in Dubai.
There is nothing impossible in Dubai since they have built amazing projects such as an artificial archipelago and the tallest building in the world.
New projects planned for next years will certainly introduce new road connections such as The Loop. Hence, the value of properties will rise.
Another valuable point that will increase the value of purchased properties significantly is the innovations where designers have included smart technologies within villas and apartments.
7. Dubai property visa
The buyers who invest in properties are also qualified for long-term residency visas. Those who invest in properties amounting to AED 2M are eligible for a golden visa.
One of the most important benefits of a golden visa is that they can sponsor their family members.
8. Persuasive rental yield
The most important reason for investing in properties in Dubai is persuasive rental yield.
In comparison with neighboring cities, they offer a return of 6% on apartments and 4% on villas. Dubai, on the other hand, renders a return of over 9% on rental yields.
| Area | Annual yield |
| Jumeirah Village Circle | 7.5% |
| Downtown Dubai | 5.4% |
| Palm Jumeirah | 5.3% |
| Business Bay | 5.3% |
| City Walk | 5.2% |
| Dubai Marina | 4.8% |
For investors who wish to invest a reasonable amount of money in the properties; Dubai is the most suitable option.
The biggest benefit is that they charge no tax on property which makes it one of the best options for property investment.
Cons of purchasing a property in Dubai
While there are great advantages to investing in Dubai’s real estate market, it’s also significant to take into consideration the cons of buying property in Dubai before making any investment.
Cons
- Initial purchase and additional costs
- Mortgage charges
1. Initial purchase and additional costs
One of the issues to take into consideration when purchasing property in Dubai is the initial fees that come with the purchase.
For instance, those who buy property directly from a developer must pay obligatory costs to the Dubai Land Department (DLD).
2. Mortgage charges
Purchasers who choose mortgages are required to pay a mortgage registration charge to the DLD, which is 0.25% of the mortgage value, plus an admin charge.
| Split | Fee |
| Mortgage Arrangement Fee | 1% of the loan amount + 5% VAT |
| Property Valuation Fee | Between AED 2,500 – AED 3,500 + 5% VAT |
However, those investors who decide to pay in cash do not need to pay the mortgage registration fee. Checking available mortgages in Dubai will provide you with a better picture of options.
Conclusion
It is significant to be familiar with the pros and cons of buying a house in Dubai. The pros of buying a property in Dubai are much more than the cons.
More and more people are attracted to purchasing properties in Dubai, whether they decide for themselves to live in, or just for investment goals.
In general, making investments in Dubai, particularly in the popular locations with scenic views is going to be profitable for the investors in the long run.
