The United Arab Emirates are a great place to live in, and as we all know already, one of the most luxurious spots on the planet. If you are trying to go after such a lifestyle and want to move there, there are some things you should know when purchasing property.
In this article, we’ll give you some free and useful advice, so if you are eager to learn more, feel free to read until the end.
Freehold versus Leasehold
Those who are not very familiar with how real estate works in the United Arab Emirates are often confused about the difference between these two options. When it comes to making a wise decision and not just wasting your money, knowing which one of these you should choose is crucial. Luckily, we’re here to explain everything.
Freehold areas are places where anyone that’s not a citizen of Dubai, for example, can buy a property, but this was not always like this. Before 2001, the government of Dubai had a law that only natives can purchase properties in freehold areas, but luckily for everyone, this changed.
Leasehold areas are the opposite of freehold areas, meaning that you are not allowed to purchase a property here, but you can lease a piece of land. If any property is given on a lease for a period that is longer than ten years, all the way up to 99 years, it is considered as a leasehold property.
Locals vs Expats
As suggested by Bayut, since a foreign national cannot be granted citizenship of The United Arab Emirates by any means, you might be wondering if any rules differentiate based on whether you’re a local or an expat in terms of buying a property.
Well, the answer is both yes and no. Locals of UAE can buy any properties, anywhere in the UAE, but expats are limited to buying only in freehold areas. Although this is not much of a limitation since there are way too many freehold areas, it’s still something that you need to consider before purchasing.
UAE is luxurious – Higher prices
Since money is one of the key things when it comes to purchasing real estate, it is worthy to know that the houses are not very cheap in The United Arab Emirates. Unless you have a real budget prepared, don’t expect to find anything that’s silly cheap.
If you decide to move there, however, expect a very modern lifestyle with a lot of excitement and fun. People in Dubai are mostly there to have a good time and live a careless life without any worries. In such a big city, you will find something to do at all times, so if better life is what you’re looking for, UAE is recommended.
Buying property for investment
Dubai’s real estate market is famous for many advantages and perks, such as the no-tax rule, transparent procedures, and a very high rental yield. This makes UAE a great place to invest in real estate, simply because it has a much bigger return on investment (ROI).