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Dubai investment opportunities

Dubai investment opportunities characterized by its abundance of choices. Whether you want to invest in real estate, eCommerce, advertisement, stock market – Dubai has opportunities for all of your business ideas.

Thanks to its geographical location, modern infrastructure, continuous governmental support of the city and business-friendly environment Dubai build its name as business and investment hub. As it was mentioned, government always supports any type of business growth and initiative by launching new rules and regulations. These new implementations opened up lots of new Dubai investment opportunities for businessmen and investors from all over the world. Recently, Dubai government has implemented 100% foreign ownership, residency visa (for investors), and golden card. With all mentioned above Dubai, investment opportunities have grown more.

 

Why should you invest in Dubai?

So why should you consider one of the Dubai investment opportunities? Generally speaking, Dubai can be considered as one of the best places to establish your business or to explore different Dubai investment opportunities. Among the main reasons, on why you should invest in Dubai, are:

  • No property tax;
  • One of the safest cities in the world;
  • Growing economy;
  • Governmental support of the local and international business;
  • RERA, DLD (in relates to Dubai real estate market);
  • Expo 2020;
  • 5-, 10- years investors visa;
  • 100% foreign ownership;
  • Gold card permanent residency system;
  • One of the fastest-growing cities, in the world;
  • Stable currency.

Investment in Dubai will only benefit an investor and bring profit in the near future.

 

What to consider as Dubai investment opportunity? 

Depending on your budget, the end goal and knowledge, you can choose among different Dubai investment opportunities. The key point here is to know exactly what you want to get as an end result.

 

Invest in your own business 

With the introduction of a new 100% ownership rule, Dubai became more open and appealing for international businessmen, when it comes to business set up. According to previous rules and regulations, specific areas, in Dubai, can offer ownership, without getting a local partner. Dubai Free Zones are among those areas where an investor can be the only owner of the business.  According to the new rule, a total of 122 economic activities across 13 sectors are eligible for up to 100% foreign ownership such as renewable energy, space, agriculture, and manufacturing industry. The decision provides investors with an opportunity to acquire various shares in a number of economic activities including the production of solar panels, power transformers, green technology, and hybrid power plants. Setting up a new business in Dubai opens up new opportunities for international businessmen.

 

Start property management company

Taking into consideration the number of real estate projects, increasing population of the city, and its growth, it is wise to consider opening property management company. Many Dubai real estate investors are international investors They invest in Dubai real estate from an investor’s point of view, not as an end-user. That creates demand for property management companies as real estate units have to be rented out and properly managed on behalf of the owner. Now, when people are investing actively in Dubai real estate market, is the time to establish a property management company. Consider it as one of the Dubai investment opportunities.

 

Dubai real estate as one of Dubai investment opportunities 

One of the most profitable sectors to be considered as one of the Dubai investment opportunities in real estate. Even though Dubai real estate market is not in its best condition, at the moment, NOW is the time to invest. Prices on Dubai real estate dropped down giving more opportunities for local and international investors to benefit from it. It became easier to own an apartment, rather than rent it. With new payment plans and offers from developers, investment in Dubai real estate became more affordable and profitable, in a long run. Some areas offer 7%-10% ROI to its investors. Choose Dubai real estate as one of your investment opportunities and you won’t regret this decision. Real estate is one of the safest and most profitable investments. Take into consideration the latest governmental implementations, stable economy and city growth, which provides additional security to your investments.

Considering real estate investment, what locations should you take a look at?

 

Invest in Business Bay 

Business Bay can be considered as one of the main Dubai investment opportunities. It is the business hub of Dubai. Due to the huge concentration of different companies, agencies it can rightfully claim to be Manhattan of the emirate. This area will always be in demand, whether it is rent or purchase as a result of its location and high consolidation of people.

Invest in Motor City 

Motor City is quite popular among expats. Due to the high concentration of more affordable apartments, this area started developing rapidly. If you are looking for a place away from Dubai busy streets, consider investing in Motor City.

Invest in Jumeirah Village Circle (JVC) 

Jumeirah Village Circle (JVC) has a good location when it comes to nearby areas and easy accessibility. It is also a short drive from the Expo 2020 pavilion and Dubai’s major business attractions. In the first 3 quarters of 2015, it was ranked the 2nd highest for move-in rates in Dubai. It is just 20-minutes away from the Al Maktoum International Airport. Another advantage is that rent will grow in the coming 24-36 months as the market improves. In terms of yield, properties offer between 15%–20% more space comparing to The Springs, and around 15%–20% cheaper to purchase.

Marina, as another Dubai investment opportunity 

Up until now, Dubai Marina is one of the most popular areas when it comes to investment in apartments because it is located near business offices in Dubai Media City and Dubai Internet City. It serves as an attraction to many businesspeople, who prefer to be near their workplace and in a prestigious neighborhood that provides plentiful community amenities and the famous Dubai Marina Walk.

Dubai investment opportunity – Al Barsha Heights (TECOM) 

Al Barsha Heights situates close to Media City with multinational and Fortune 500 companies, which include BBC World, Microsoft, HP, CNN, Reuters, CNBC, Vodafone and more. It has numerous residential buildings suitable for anyone seeking to invest in Dubai. It is a top choice for visitors, because it is set in the heart of ‘New Dubai’ and considered a business hub. The perfect location makes it easily accessible from any other area in Dubai. Constant development gives endless opportunities for investment.

Dubai has a wide range of investment opportunities, especially when it comes to the real estate market and related services. Recently implemented rules and regulations are support Dubai real estate investors and encourage them to consider Dubai as an investment opportunity. If you want to know more on how you can invest your money with a high return on investments – contact Universal Prime Real Estate for more details, at 04 425 3935.

 

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Dubai apartment for investment

Dubai apartment for investment should be chosen wisely. Investment in real estate does not bring fast results or profit. It is a long-term project which has to be planned and executed properly for maximum return on investments. Before considering any kind of a real estate investment you should get knowledgeable about the current situation of Dubai real estate market.

Getting ready for the upcoming Expo 2020, numerous Dubai real estate developers started launching projects. As it is expected that more than 30 million people will be visiting Dubai during the period of Expo 2020 (October 2020 – April 2021), majority of developers planned to hand over their projects before the end of 2021. Due to high projected supply and lower demand, Dubai real estate market faced price decline. Nevertheless, Dubai real estate market will pick up in the next 1-2 years. That is why it is important to invest in Dubai apartment, now.

 

Dubai apartment for investment and best location

It is not that difficult to find suitable Dubai apartment for investment. Everything depends on your end goal (end user or investor) and the location itself. If you want to go for Dubai apartment for investment as an end user, you should consider such locations as downtown and Jumeirah. Nevertheless, if your end goal is to gain profit as an investor, you should check Discovery Gardens, JVC, Motor City, etc.

 

Dubai Marina 

Dubai Marina is a home for many European expats. One of the main reasons are relatively new area, water canal, and breathtaking towers. Up until now, Dubai Marina is one of the most popular areas when it comes to investment in apartments because it is located near business offices in Dubai Media City and Dubai Internet City. It serves as an attraction to many businesspeople, who prefer to be near their workplace and in a prestigious neighborhood that provides plentiful community amenities and the famous Dubai Marina Walk.

 

Business Bay 

Did you know that Business Bay has the second name? Being a well-known business hub, it is set to become the Manhattan of the emirate. Located in Dubai downtown, it attracts lots of investors due to numerous offices. This area will always be in demand, whether it is rent or purchase.

 

Al Barsha Heights 

Al Barsha Heights situates close to Media City which hosts multinational and Fortune 500 companies, which include BBC World, Microsoft, HP, CNN, Reuters, CNBC, Vodafone and more. It has numerous residential buildings suitable for anyone seeking to invest in Dubai. It is a top choice for visitors, because it is set in the heart of ‘New Dubai’ and considered a business hub. The perfect location makes it easily accessible from any other area in Dubai. Constant development gives endless opportunities for investment.

 

Dubai Sports City 

Dubai Sports City was launched in 2003 as Dubai’s sports center, hosting academies in golf, cricket, hockey, football, swimming, and rugby to name a few. Close to Dubai’s major roads, and only 15 minutes away from the much-anticipated Expo 2020 pavilion. It is a recommended choice for investors as millions of visitors are expected to arrive in Dubai for the Expo 2020.

Due to recent market conditions prices on properties went down for both off-plan and secondary markets. As developers started concentrating on more affordable units for end users and investors (studio, 1-,2-bedroom) people started moving from big apartments into smaller ones. Owning became easier than renting. Dubai Sports City is still a young area which is developing rapidly. Due to its popularity and growth, it is one of the most attractive areas when it comes to investments.

 

Jumeirah Village Circle (JVC)

Considered as one of the fastest growing locations in Dubai, the Jumeirah Village Circle (JVC) has a good location when it comes to nearby areas and easy accessibility. It is also a short drive from the Expo 2020 pavilion and Dubai’s major business attractions. In the first three quarters of 2015, it was ranked the 2nd highest for move-in rates in Dubai. It is just 20-minutes away from the Al Maktoum International Airport. According to Bureau International des Expositions, Expo 2020 will be attracting millions of visitors. JVC’s central location is expected to increase demand for hotel rooms during Expo 2020 which will boost investment in Dubai. Another advantage is that rent will grow in the coming 24-36 months as the market improves. In terms of yield, properties offer between 15%–20% more space comparing to The Springs, and around 15%–20% cheaper to purchase.

 

Dubai apartment for investment and the best ROI 

When it comes to Dubai apartment for investment, ROI is the major deal maker. Each Dubai area has a different ROI. Depending on what you are looking for and what is the end goal you can choose a suitable location.

According to the research, conducted by Bayut, there are 10 locations in Dubai which can be considered as a profitable investment option, for Dubai apartment investors. According to the obtained results, we can shortlist the following areas:

  1. Dubai Marina – 6.4%
  2. Downtown Dubai – 5.4%
  3. International City – 9.7%
  4. JVC – 6.7%
  5. Palm Jumeirah – 5.3%
  6. JLT – 7.7%
  7. Dubai Silicon Oasis – 7.6%
  8. Dubai Sports City – 7.9%
  9. JBR – 6.3%
  10. Business Bay – 6.4%

Dubai Marina and Dubai Downtown still hold their position strong as one of the most attractive places to invest in. Taking into consideration current market trends International City, Dubai Sports City, Dubai Silicon Oasis and Motor City are among top preferences when it comes to real estate investments.

International City, on the other side, is the 3rd-most searched area for apartment sales in Dubai. Prices for studios stays the same, comparing to 2018. Nevertheless, for those who want to invest with more profit, 2BR apartments in International City is the answer. Prices have risen by 1.4%, increasing from AED 690,000 to AED 700,000 in the first quarter of 2019. A similar trend has also been noticed in other affordable areas like Dubai Sports City, where 2BR units have seen prices jump by 3%.

While property prices in Dubai have decreased over the last quarter, the changes have been modest. Dubai apartment for investment stays the most profitable asset, comparing to villas and townhouses. Current Dubai real estates market conditions such as price decline, oversupply and people’s shift towards new Dubai areas remain investment even more profitable. Taking into consideration Expo 2020 and the expected a rush of tenants Dubai apartment stays a hunk of burning.

Invest in Dubai apartments with Universal Prime Real Estate. Contact one of our property advisors for more information on which location to choose for future investments.

 

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Investment in Dubai property market

Investment in Dubai property market can be considered as one of the most profitable investments, in UAE. But what exactly makes it so special and worth considering? Investment in Dubai property market became more attractive due to the decline in property price.

 

Market Cycle 

Among one of the reasons is that Dubai property market is going through a 7-year cycle. Like every market, Dubai property market has to go through booming, recession and slump phases. It was booming few years back. Now is the time for the slump. This business cycle is typical for every industry which brings lots of improvements, as a result.

 

Oversupply 

The second reason for Dubai property market to decline is property oversupply. Due to the upcoming Expo 2020, Dubai developers started launching numerous real estate projects. It led to Dubai property price to drop for both off-plan and secondary markets. In order to stabilize the situation and slow down price decline, numerous measurements took place from the developer’s and government’s sides. Developers slowed down development in order not to oversupply the market and keep prices relatively stable. Government, from their side, implemented rules and regulations which benefit Dubai property market investors such as 5-, 10-years residency visa and 100% foreign ownership. All these changes worked positively for Dubai property market. It led to slowing down price decline and attracting more investors to the city.

 

Dubai real estate market trends 

For a very long period of time, Dubai was popular for its luxury apartments and villas, attracting thousands of investors from all over the world. Nevertheless, starting from 2016 Dubai property market’s trends have shifted. Due to constant population growth, mainly through labor flows, the citizenry of Dubai increases each year. Majority of these people are middle-class workers whose main objective is to earn money. The vast majority of them are single, couples or young families. A new strategy towards affordable housing was implemented, in order to keep people in the country and to ease their life.

 

Dubai property market strategy 

Dubai property market is shifting towards the mid-market segment and smaller units. This is where the real demand is picking up. Developers started focusing more on smaller and affordable units, specifically to satisfy the needs of a middle class. Three-bedroom apartments and villas were substituted by more affordable studios and 1-, 2-bedroom apartments. Proportionately, it led to an increase in ROI. While investing in a smaller apartment investor will get higher ROI, comparing to investment in bigger apartments or villas. This factor is the key when it comes to investment in Dubai property market.

 

Which property to choose to invest in? 

If you are an investor and interested in getting high ROI, you should consider investing in smaller units. Investments in a studio or 1-bedroom apartment can bring up to 10% – 12% ROI, depending on the location. These are the type of units in demand. Taking into consideration the upcoming Expo 2020 (with more than 30 million visitors) Dubai developers will continue implementing this strategy and focus on more affordable housing.

 

Choose your location 

According to numerous market studies, when it comes to investments, Dubai property market experts highlight 3 main areas:

  • Discovery Gardens;
  • Jumeirah Lake Towers and Dubai Marina;
  • Jumeirah Village Circle.

 

Discovery Gardens 

One of the main advantages is that Discovery Gardens consists of multi-sized apartments. It is possible to get a studio in Discovery Gardens and pay all needed bills for less than USD 100,000. Gross rent of 11%-12% can be achieved with a net rent of 8%. Apartments in such locations will attract expat workers. By trying to save they move as far as possible from Dubai downtown. Apartments will surely be in demand, in Discovery Gardens.

 

Jumeirah Lake Towers and Dubai Marina 

Property prices in Dubai Marina and JLT differ between developers. There is also a great difference in the quality of units. You can find larger apartments but with poor quality and smaller apartment (for the same price) with better finishing. The first step is to find the right building rather than a developer. Some developers and buildings vary in quality and price point. The key here is to go for quality over quantity. Less square footage but to a higher spec may be a better proposition than the reverse.

 

Jumeirah Village Circle 

JVC is a perfect location when larger investments are considered, such as a 3-bedroom apartment. The main reason is that multiple demand points can be covered. People in larger villas or townhouses who want to downsize due to budget constraints will get attracted to this area. Also, people in larger units downsizing as they want to save, and people in smaller units with a growing family. Another advantage is that rent (in this area) will grow in the coming 24-36 months as the market improves. In terms of yield, on average properties in the JVC development offers between 15%–20% more space than those in The Springs and around 15%–20% cheaper to purchase.

Even those looking for a larger living space in Dubai still seek out value for money. This hunt for cheaper living in the heart of the city will drive more and more renters to developments like JVC, Dubai Marina and Discovery Gardens increasing demand and keeping rental yields healthy.

If you are looking for a great investment opportunity, would like to get high ROI – contact one of our property advisors. Universal Prime Real Estate team of experts will have answers to all of your questions.

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Dubai real estate rules and regulations

Dubai is a well-known touristic, business, and investment hub. Due to the economic and political situation, many businessmen prefer to invest in Dubai. This city is developing rapidly and always seeking for new ways on how to bring more opportunities to Dubai investors.

For the last few years, buyers and investors are taking interest to invest in Dubai properties. Due to the rapid increase in real estate investments, the government designed and implemented a number of Dubai real estate rules and regulations for real estate investors. Dubai real estate rules and regulations address many legal issues to selling, buying and owning Dubai property. The main aim is to protect real estate investors’ interests to make the investment process fast and easy.

 

Dubai Land Department 

Dubai Land Department (DLD) established in the 1950s as the Land Registry Department. It was the first entity to handle properties and ownership affairs until HH Sheikh Rashid bin Saeed Al Maktoum, one of the Founding Fathers of the UAE, established the Land Affairs Commission. He granted it the authority to document and audit certificates, examine and map properties.

 

Main objectives of DLD 

Dubai Land Department (DLD) seeks to achieve the objectives of Dubai Government’s strategy in the real estate sector and improve land registration procedures according to latest international systems and practices in the real estate sector. It is aligned with a framework of strategic objectives to plan and develop an integrated strategy to enhance the real estate industry in Dubai. The strategy will also help to improve the sector’s control and monitoring competency, oversee and develop its leasing regulations. It will also encourage investments by establishing appropriate environments to promote the role of real estate in Dubai’s comprehensive development plan.

 

DLD Services

The main goal of DLD is to make sure that all of the related tasks to Dubai real estate rules and regulations are covered and taken care by the government. The DLD offers more than 26 main services and 216 sub-services to customers in the real estate sector. All services include land and title registration, registration and licensing of real estate professionals, and developing a regulatory framework to attract and effectively manage investments. Furthermore, the DLD complies and publishes on a weekly and monthly basis to allow investors to keep track of current real estate prices in Dubai.

 

Vision and Mission 

The vision of the Dubai Land Department (DLD) is to provide a perfect investment-friendly environment based on international best practices that safeguard the interests of all stakeholders in the real estate market.

The mission is to create an innovative and sustainable real estate environment which will promote Dubai as the world’s happiest city through:

  • Smart services;
  • Professional human and financial recourses;
  • Integrated real estate legislation.

 

Real Estate Registration Agency (RERA)

RERA has the main responsibility of putting legal Dubai real estate rules and regulations on all real estate related activities of developers, brokerage companies and owners associations. It also issues licenses to developers, brokers and rules & regulations for the registration of off-plan sales in Dubai. RERA monitors all project of developers from financial and technical aspects in order to protect the wider interest of the market and investors. Another task of RERA is to monitor compliance of developers, brokers, and other licensed real estate professionals with applicable Dubai real estate rules and regulations and imposing penalties for violations, including cancellation of projects.

 

Who can be a real estate owner, in Dubai? 

For many people buying a property in Dubai is a must, even though it used to have its own complexities. Due to great interest from international investors, new Dubai property law has been announced which gave an opportunity to freehold leases of Dubai property for 10 to 99 years lease in specific areas. It started attracting more investors to the country and gave an additional push to economic growth.

 

Why should you be aware of Dubai real estate rules and regulations? 

Real estate is a big and long-term investment. It requires proper legislation knowledge.  Dubai real estate rules and regulations are changing and always improving in order to make the investment process easier for international businessmen. Right knowledge gives the opportunity for the right and safe decision.

In order to invest a person should obtain a residential permit to live in the UAE. Buyers only need to sign a contract while purchasing a property. In most cases, depending on the payment plan, buyers are required to deposit 10%-20% as a down payment. If you are going to purchase an off-plan project you will have to make payments in installments. In purchase agreement in Dubai, you can transfer the amount to the third party or vendor. If a buyer is making payment via a vendor, he needs to pay 2% of the total property price as a fee to a vendor.

When it comes to real estate investments Dubai government takes direct control on the project development, documentation, registration and money transfers. It secures and protects an investor’s interests. In terms of money transfers, all of the payments should be done through ESCROW account.

 

Dubai economy and real estate sector 

Dubai is one of the most popular and well-known cities, in the UAE. Its economy developing fast as it is not based on oil, rather on tourism and financial services. Due to the recent financial crisis, which affected UAE as well, Dubai real estate market growth slowed down, slightly. Property prices have decreased which opened even more opportunities for Dubai investors. This time can be considered as one of the best to purchase a Dubai property. In order to make a profitable and successful deal, every investor should be aware of the main Dubai real estate rules and regulations.

 

Real estate law number 7 

Real estate law number 7 allows foreigners to obtain property ownership on rent or lease.   The duration of property lease for any property is around 99 years that must get approved by the State Government of Dubai.

 

Rental property laws 

According to the rental property law, the tenancy agreement should be signed for 1 year between a landlord and tenant. A landlord is not allowed to increase rent, during the validity of the contract. Rent price can be changed only during the contract renewal. What is more, landlords are not allowed to increase rent for more than 15%. In case of any dispute between renter and homeowner, they need to file a case to the municipality’s rent Control Committee.

 

Inheritance property law 

Inheritance property law is quite complex as compared to other Dubai property laws. If a deceased asset owner holds membership of other nation, then inheritance law of UAE also consider the law of other nation. It becomes more complex to decide inherited owners if a homeowner holds dual citizenship of two countries other than UAE. A valid will that fulfills all the legal standards of UAE and Dubai is essentially required to assign estate to legal beneficiaries. In the absence of a legal will, it is an Interstate Court decides how a property should be divided among recipients or state will owe that property. That’s why foreign investors and buyers must have a valid will to save their asset for their families.

 

The legal part of real estate investments is a must, in order to make the right decision when it comes to investments. If you are planning to invest in Dubai real estate – contact Universal Prime Real Estate. Our investment consultants will be able to provide full information on recent Dubai real estate rules and regulations and help you to make the right investment decision.

 

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Will Dubai real estate market crash?

Dubai real estate market witnessed major developments which include new laws, initiatives and projects announced. While prices on properties are still declining, governmental innovations in terms of visas, investments and business opportunities gave more freedom for investors to consider Dubai real estate market as an investment opportunity.

Over 19,700 units have been delivered year to date. Prominent deliveries include Bluewaters Residences, Damac Heights in Dubai Marina and multiple projects in Nshama Townsquare and Akoya (Damac Hills).

 

Dubai real estate secondary market 

2018 was a good year for Dubai’s secondary real state market. While residential off-plan sales have been low (-32% compared to 2017), there has been a rise in transactional activity in the ready space.

Market correction occurred as property prices have adjusted to the increased supply. This benefits consumers who may have previously aspired to own a property but was priced out, and we’re happy to see long-time UAE residents begin to invest and buy properties as an alternative to renting.

 

Governmental support 

Dubai government aims to attract more investors to growing Dubai real estate market by implementing different strategies which will benefit investors in the long run. Among the main governmental initiatives are:

  • 5-, 10- year visas;
  • 100% foreign ownership;
  • Long-term residency.

Due to the numerous projects launch, some developers delay handover. Dubai government secured investors by implementing new regulation. According to DLD, developers who delayed handover for more than a year must pay investors an equivalent amount of 1-year rent.

A reform-oriented government continues to be the main driver of the Dubai real estate market growth. Local and international investors build more trust in this market and government in general.

 

Residential capital values

Overall residential capital values for existing freehold properties declined 11% annually and are 22% below their 2014 peaks. However, not all areas performed equally.  The highest annual declines of more than 15% came from Business Bay, International City and Jumeirah Islands, locations with less than 6% declines were villas in Palm Jumeirah, Emirates Hills, and Al Furjan.

 

The rental market has become a tenants’ market 

Landlords have moved from accepting only one cheque to accepting up to 12 cheques. Macro-induced crunch on the consumers’ purchasing power had prompted a fight for affordability in both the rental as well as the sales markets. It directly boosts the retail, insurance and banking sector as more people continue to call Dubai their permanent home.

The shift towards domestic end-users rather than investors took place, as well. Developers offer innovative self-funded payment plans directly to their purchasers, outside of the traditional mortgage market.

 

What is the current situation of Dubai real estate market? 

At the moment, the Dubai real estate market is experiencing a decline in prices. The drop in the market of around 25% blamed on the oversupply of high-end luxury developments and falling oil prices.

Despite the decline in property prices in Dubai, several new initiatives were announced to improve the market sentiment and provide tangible returns.

One of the new regulations will see banks provided with more flexibility in terms of lending to real estate investors, which in turn will boost the market.

Developers are also focusing more on affordable units for the middle class, aimed at persuading renters to become buyers. They aim to create a community rather than just a single building. Some developers are following the trend when it comes to creating spaces that people can live, work and entertain themselves within.

 

Market stabilization 

According to Dubai real estate market experts, the market will start stabilizing in 2020 only. It is expected that more than 30 million people will visit Dubai for the Expo 2020. Among these 30 million, 70% will be from outside the UAE. The excessive supply will find its buyers and tenants. Implemented governmental changes only stabilize the Dubai real estate market and give an additional push towards its improvement.

Dubai real estate market is going through cycles, like any other market. Comparing to GCC real estate markets, Dubai is ahead of the curve which means that the worst situation passed. Today’s real estate market is on its way to stabilization.

 

Despite all rumors that Dubai real estate market will crash – it’s improving constantly. Due to governmental immediate initiatives and support the situation didn’t get worse and handled properly. What can we expect in 2019? The prices will be still dropping, but not that rapidly. By 2021 Dubai real estate market will stabilize.

What are the future trends and what should we expect? If you want to get more details on the future of Dubai real estate market – contact one of our property advisors. They will be able to provide all the needed details regarding the market situation and investment opportunities.

 

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Dubai real estate and why buyers are interested in its future?

Dubai real estate market was always an attractive alternative for real estate investors. One of the main reasons is a stable economy and a great geographical location of UAE. But is it enough to make a decision when it comes to real estate investments? Dubai real estate market has a lot to offer, despite the current market situation. The market is on its way to stabilization and it will improve in a short period of time due to recently implemented governmental laws and regulations. But what exactly makes Dubai real estate so attractive for international, and local, investors?

Governmental support of Dubai real estate market 

During 2018, governments across the Gulf have introduced several initiatives to support real estate markets. The UAE has reduced government fees down to 2.5% of the annual rent of commercial establishments from 5% and relaxed regulations around foreign ownership in businesses located outside of free zones. It has also approved a long-term residency visa program, which offers 5 to 10-year resident visas for foreign investors who invest between AED 5 million to AED 10 million in real estate projects. Such changes will positively benefit the Dubai real estate market as opens more opportunities for investors and businesses.

Numerous real estate projects 

Dubai real estate market is booming. A number of new affordable projects, concentrated on the middle-class investors, has been launched. It gives an opportunity for people to shift from rented apartments and start owning their own place. Wide variety of properties allows the future investor to choose the most suitable unit according to their budget and preferred location. Nowadays, even one of the most prime locations can have units, affordable for everyone.

Expo 2020 

It is expected that more than 30 million people will visit Dubai during Expo 2020 which will take place between 20th of October 2020 and 10th of April 2021. Among all expected visitors, a good number of them will eventually settle in the city even after the event is over. It will boost the economy of Dubai and bring more opportunities to Dubai real estate sector, in particular.

City’s vision 

Dubai is a place which everyone wants to visit. This city has everything one can think of. World’s tallest building, the world’s only 7-star hotel and the tallest hotel in the world. Once we thought that’s impressive and enough, the city came up with the design of even a taller building, Creek Tower, to break its own record which is set to be completed by 2020. The government of Dubai has set a plan to establish Dubai as the city of the future. Dubai implementing all the latest technologies to make the life of its residents easier and more exciting. The vision of Dubai rulers is to create a perfect environment for its residents, regardless of their nationality, profession or age. Every single person should be happy and free, living in Dubai. This is the main goal and development course in the city.

Dubai is one of the best places to live in. The growing economy, increasing population, safety, and numerous real estate investment opportunities make this city number one destination for the majority of real estate investors. Recently implemented rules and regulations, related to Dubai real estate investments, added even more confidence for international investors.

If you are considering investing in Dubai real estate market – contact one of our property advisors. Universal Prime Real Estate will be happy to share all the benefits which are waiting for you, as an investor.

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Dubai investments for residency

What gives us a feeling of security? An apartment, stable job or business, our family and the ability to make future plans. All these basic needs are essential if you are living in your country. But what if you are living or planning to move abroad? In this case, the list above should be complemented by one more very important criteria – residency. These are the top essential things which secure our life abroad.

Dubai economy

Dubai shifter into a less oil-dependent country a few years ago. With an amazing growth rate of 6.1% in 2014, Dubai becomes one of the fastest growing economies in the world. It allowed to build trade relations with multiple countries in the world. As a result, it aids its economy. It all leads Dubai government to move towards a relatively diversified economy, improvement of infrastructure and ample foreign assets, according to the Institute of International Finance.

The introduction of 5% VAT further diversified revenues. VAT is a measure that will give more stability.

Investments for residency 

According to the latest statistical data, 3.23 million people are living in Dubai and this number will increase up to 10 million by 2027. Among the main reasons for people to move to Dubai are stable economy, numerous opportunities when it comes to investments, business and career growth. Upcoming Expo 2020 attracted a number of new investors to the city. In order to improve its image as a land of opportunities and take care of those who chose Dubai as an investment destination, its government implemented new rules and regulations. Dubai investments for residency now have few options such as 5-, 10-years residency visa and 100% ownership. According to His Highness Sheikh Mohammed, global investors can have 100% ownership of their companies in the country. He the following vision in his Tweet: “Our open environment, tolerant values, infrastructure, and flexible legislation constitute the best plan to attract global investments and exceptional talents. The UAE will remain a land of opportunities. It is the best environment to realize the dreams of humans and unleashes their exceptional potentialities.”

How much should you invest to be eligible for Dubai residency? 

Depending on the number of your investments you can be granted 5- or 10- years visa. Those who own property worth AED 5 million or more will be eligible for a 5-year residency visa. Investors who hold an investment through a deposit in an established company or a business partnership worth AED 10 million or more will be granted a renewable residency visa every 10 years. Others who made various investments of no less than AED 10 million, including property – which must be worth no more than 40% of the total investment – will also qualify for a renewable residency visa every 10 years.

Entrepreneurs who own a project worth AED 500,000 or above can be granted 5 years visa with the further possibility of upgrading it to an investor’s visa. It can be done only if all needed requirements are met.

What are the main benefits of the investor’s visa? 

Apart from getting 5- or 10-years residency visa, Dubai investors will receive a number of other benefits such as:

  • Free entry into the country and residence on its territory;
  • Arrangements for moving to the UAE for members of the family;
  • Opening a personal account in one of the banks of the UAE;
  • Obtaining a driver’s license and insurance in one of the Emirates;
  • Teaching in educational institutions throughout the country;
  • Free entry into the countries of the Persian Gulf and some other countries;
  • Receiving profit and income that are not taxable.

 

The above article provides full information on Dubai investments for residency and how an investor can benefit from it. But the main question is: “What project to choose to invest in?” This puzzle can be solved by one of our experienced property advisors. Universal Prime Real Estate property advisor can not only suggest what project you should invest in, but also what is the best time for investment including projects with high ROI that you should consider.

Contact Universal Prime Real Estate and let our agents help you in creating a better future for you.

 

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لماذا جاء الأثرياء؟

ماذا يعنى أن تكون دولة الإمارات ضمن أكثر دول العالم استقطابا للأثرياء, و أن تكون دبى الخيار الأول بين مدن العالم قاطبة جذب أصحاب الثروات؟

ليس من البساطة بمكان أن تنافس دولة أو مدينة عربية دول العالم و مدنها الشهيرة, فى واحد من أهم المقاييس و هو رضى أغنى الأغنياء, و أن تلبى مطالب هذه الشريحة الصعبة المراس و الكثيرة الطلبات التى يعرف عنها أنها “لا يعجبها العجب”. و كيف تنجح دولة موقعها الجيوسياسى فى منطقة تواجه تحديات جمة فى تحقيق إستقرار قل فى نظير العالم, و أن تكون ملاذا أمنا و حرا لأصحاب الملايين و عائلاتهم؟

الأمر كله يدعو إلى تقدير قيادة الإمارات التى تؤمن بأبنائها أولا و بالإنسان الأخر ثانيا, و تعده شريكا فعالا فى الإقتصاد و المجتمع. قيادة تنتهج مبادئ التسامح و ترفع العدل راية, حيث الجميع سواسية أمام القانون.

ما وصلت إليه الإمارات ليس وليد اللحظة بل هو نتاج إيمان و رؤية و عمل و مثابرة, إنه حصيلة حرية الفرد و تفجير الطاقات الإبداعية و رعايتها, إنه نتاج عمل فرق بأكملها نفذت بنجاح رؤية قيادة واعية همها الأول الوطن. سنت الإمارات القوانين ووفرت البنى التحتية الراقية, و قدمت التسهيلات للأعمال, و أطلقت المشاريع الأساسية و الكمالية, و بنت أجهزة إدارية سلسة, ووفرت الأمن و الأمان, و فتحت ذراعيها للجميع فأصبحت أرض الأحلام, و مركزا للباحثين عن الإبتكار و ملاذا للأثرياء و المبدعين.

التقرير الأحدث يفيد بأن دولة الإمارات إستقطبت فى 2018 نحو 2000 من أصحاب الثروات الكبيرة, بينما تصدرت دبى مدن العالم, حيث إجتذبت أكثر من 1000 مليونير, متفوقة فى ذلك على مدن كبرى مثل لوس أنجلوس و ملبرون و ميامى و نيويورك و سان فرانسيسكو و سيدنى.

سمو الشيخ حمدان بن محمد بن راشد أل مكتوم ولى عهد دبى فى تعليقه على التقرير يقول إن هناك عناصر تكاملت جعلت دولة الإمارات محط أنظار العالم نموذجا أمثل للعيش و العمل.

و هذا النموذج اليوم مؤهل للإستفادة من وجود هؤلاء الأغنياء على الأرض, فوجودهم يعكس إيجابا على قطاعات الإقتصاد كافة, وإن كان على رأسها التجزئة و العقارات و الطيران و الخدمات المتنوعة. و من شأن ذلك أن يسهم بقوة فى تعزيز دورة إقتصادية متنامية تظهر فى الأفق.

لكن من أين جاء هؤلاء الأثرياء؟

يظهر تقرير بنك “أفرو أسيا” نزوحا كبيرا لأصحاب الثروات من مواطنهم إلى دول العالم و منها الإمارات, حيث نزح من الصين 15,000 مليونير و من روسيا 7,000 مليونير و من الهند 5,000 مليونير و من تركيا 4,000 و من كلا من فرنسا و المملكة المتحدة 3,000.

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Why Millennials should invest in real estate?

Many of us have certain stereotype when it comes to Millennials, those who were born between the years 1982 and 2000. You can always hear that they are spoiled, lazy, irresponsible, social media addicts, etc. But is it actually shows the real picture?

In many countries Millennials constitutes the majority of country’s population. For instance, in USA Millennials are the largest age group who are hardworking, goal oriented who are getting good job and gaining financial stability very quickly. They are the ones who changing the world trends drastically.

Numbers talk

Millennials are very smart and careful when it comes to big investment. These kind of people like deals and can easily invest in something they really believe in. According to the latest research conducted by Bank of America 1 in 6 Millennials have savings of $100,000 and ready to invest. In 2017, Millennials made up the largest group of homebuyers (34%) and of all Millennials property investors, 66% were first-timers. It makes a lot of sense that they are becoming more and more interested in real estate investments as 85% of Millennials find it one of the best investment opportunities.

Consider real estate investment now.

What are the main benefits for Millennials if they invest in real estate now? Check our 5 top benefits if you are planning real estate investment.

  1. Recovery

Every investor, when they only start this game, face ups and downs. If you failed in your first investment you will recover faster comparing to older investors. Main concern for older investors will be whether it affects their retirement or not, when Millennials can learn fast from their mistake and try again.

  1. Less responsibility

Every door is open for young people. This expression as well as possible describes variety of opportunities for younger generation. And real estate investment opens enormous amount of them. Millennials are active and like to do things fast. Real estate investment may not be considered as a risk as majority of them don’t have family, they are not tied down to a certain location or have countless expenses. All these factors allow them to make the right investment decision.

  1. Decision making

Older investors tent to take time when it comes to real estate investments. They take into consideration all pros and cons, do proper market research and check different options, when Millennials are way faster. They know already what they want and they are not afraid to make the final decision.

  1. Long term investments

Real estate can make you rich – this is out of question, even though it is not a quick process. To reach the maximum return on your investments, you’ll need time. Nothing happens overnight. You’ll enjoy your investment over a longer period of time by getting into it early.

  1. Financial freedom

By investing in real estate when you are young can protect your family from job loss or financial instability. Even if you lose your job, you’ll have money coming in from your real estate investment. Eventually, your real estate will continue making money for you even when you’re not working.

 

There is no doubt that Millennials are entering into their peak investing years, and their actions should be taken into consideration. Numerous opportunities are available for them, taking into consideration current Dubai real estate market situation, multiple projects with easy payment plans. All this makes investing easier and more accessible.

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How to make an investment in real estate without any mistakes?

Is it easy to invest in real estate? Investment in real estate can be an incredibly easy and profitable venture. But every investor should take into consideration all the risk factors while owning an investment in real estate. Investment in real estate is valuable, so every scenario of what can go right or wrong should be calculated and taken into consideration before making any final decisions.

Property and Market Research 

What should be the base of every successful decision? Proper research and knowledge of the market you are planning to invest in, especially regarding investment in real estate is the basic requirement. When you start considering investment in real estate, knowing all the details of your future investment will only help in surmising whether it’s worth it or not. Market trends and its forecast, future cost of investment, long term investment opportunities and its benefits are all that should be taken into consideration.

Moreover, You should study the property itself for its history, location, surrounding area and the future potential of the area your property of interest is located in. Indeed, creating the whole picture clearly helps in making the right decision.

Setting up your budget 

Before considering any investment opportunity – set up your budget and manage within it. You should know the amount of money you are ready to invest and what can be too much for your pocket. It will allow you to focus on properties within your budget and to avoid exceeding the limit.

Stay focused 

It is a well-known fact that investment in real estate is an emotional purchase. That is why it is essential to stay focused and not get attached to a specific property, building or an area. Doing so will save you from a financial trap as you can avoid the problem of overpaying for the property, not considering future ROI and market forecast.

Always have plan B 

Investment in real estate is a great opportunity either to get passive income or to grow your business. But what if something goes wrong, in the future? That is why you should have plan B in case you need to either sell or rent this property. Identify the best time to sell or rent this property, in order to get maximum profit or at least to get back what you have spent to avoid financial issues. Additionally, such knowledge or detailed action plan will help you keep focused and prepared for an unpredictable future.

Real Estate consultancy 

If investment in real estate is your first big investment and you are new to it – it is always better to use the help of a professional. An expert’s advice can help you to have a better knowledge of the market and recognize how accurate your original estimates are. Universal Prime Real Estate, with their professional property advisors, can provide you all the needed information and consultation in order to choose the best property according to your needs and budget. Furthermore, our property advisors will be able to calculate and give you an estimated ROI based on the current market situation and future trends.

Investment in real estate means stability, growth, passive income and in many cases carefree future. In order to invest in the right property, real estate market knowledge and professional guidance from a property advisor is a must. It will not only be an aide in your decision but also allow you to maximize your benefits by maximizing your return on investments.

If you are looking for advices in such investments – Feel Free to approach Universal Prime Real Estate. We know what to do next.