Types of properties offered by Umed Properties

There are three property types that our clients can invest in in Dubai. Our clients are highly encouraged to engage our highly trained agents on the best property investments opportunity depending on the individual need and preference.

The process of buying freehold property in Dubai for foreigners has been made easier than ever before by Umed Properties. Freehold properties are most commonly sought by investors who are interested in investing in the UAE, or who plan to buy a flat in Dubai. Individuals living in the UAE have access to freehold properties that can be rented, sold, and inherited if required.

Freehold property has also been associated with relatively undeveloped parcels of land rather than homes or apartments. This allows owners to develop a property of their choice on the land.

Since the investor enjoys the full ownership of the property in perpetuity, the property can be used for any purpose. It also requires less amount of paperwork and does not require consent from the state.

If you are looking to purchase a freehold property in Dubai, contact our team of agents.

Another type of property offered by Umed Properties for purchase by potential investors in Dubai is commonhold. These properties consist of primary condominiums, apartments, and non-residential units in a building. Purchasing a commonhold property provides you with the individual right for buying, sell, or rent a property for inheritance.

This is similar to a freehold property. However, since commonhold properties are very similar to apartments, the owners have to make fee payments for the property maintenance as well as its common areas. These buildings are usually owned by a real estate or property developer.

Our common type of arrangement for property within the UAE is called usufruct. This is primarily regarded as a lease for long-term investment. The occupant of the property does not have the right to amend or change a usufruct property in any way. Leases for usufruct properties have a life that could go up to 100 years.

Factors to Consider Before Buying Property in Dubai

One of the most essential elements that you should consider before investing in Dubai’s real estate properties is location. Individuals who want to invest in an apartment property or buy a luxury house in Dubai should research the best locations for future investment in real estate. Some of the prime locations in the city, such as JBR, Dubai Marina, Downtown have a particular set of facilities associated with them that provides opportunities for a high-quality lifestyle.

Hence, investors should look to what could be beneficial for them. Looking for such properties can be time-consuming work; however, Umed Properties offers you a list of the best real estate in Dubai at ideal locations that can provide long-term yield on investment to investors.

It is certainly difficult to select a specific location when there is a wide range of highly tempting options. To get the best return on your investment, it is essential to engage our real estate agents to help you select the best properties in the market.

As an investor, we will also help you analyze the current property trends, predictions, and patterns on financial investments. Newer projects for investment in Dubai may be more attractive for investors. The more you engage us, the more benefits you can extract from UAE’s real estate market.

 

Before investing in Dubai’s real estate market, you should evaluate the overall tenure for which you plan to remain in the UAE. This is important as it will help you to determine the total value that you can derive from your potential return on investment. However, if you are not sure of your possible commitment or long-term plans in the UAE, renting a property is better.

One of the most important factors that investors considered globally before purchasing real estate property is affordability. An individual’s housing expenses monthly must not increase more than 25% of their total income. Your budget should also be enough for upfront fees. This could be nearly 9% of the property’s overall price of purchase.

Being an owner of a real estate property in Dubai, you would also need to keep track of the maintenance fees and payment of the annual service charges. 

Currently, because of the low property prices caused by the pandemic, the real estate market in Dubai has become a buyer’s market. Hence, this is a great time for investors looking for houses and properties at discounts to invest in Dubai.

If you are thinking of renting out your property in Dubai, you should focus on how much monetary gains you will get. This will help you assess if the potential rental income is adequate for covering your repayment, mortgage, and maintenance expenses.

Typically, investors can get a gross yield of anywhere between 5% and 9%.

There are mainly two types of residence visas that are typically available in the UAE. One is a six-month multi-entry. The other is a two-year visa for residency. Owners of real estate properties also have an option to sponsor residence visas for their families.

A property in Dubai that has been valued at AED 5 million or more, has no specific mortgage value attached to it, and has been retained for 36 months or more can help potential expatriates or foreigners get a residency visa of 5-years or more. This depends primarily on specific conditions for eligibility.

Costs Required For The Purpose Of Purchasing A Property In Dubai

There is a specific cost of buying a house in Dubai. It is important that you have an idea of all the fees associated with buying a house in Dubai in advance. This is essential to set your budget in a relevant manner.

  1. Fees for NOC: This is usually in the range of AED 500 to AED 5000. It can be paid directly to the real estate or property developer.
  2. Registration fees: Nearly 4% of the total purchase price of the property may be paid to DLD.
  3. Commission of the real estate agent: This is nearly 2% of the property’s price of purchase.

Mortgage

If you do plan on taking out a mortgage, it is important to determine the terms and conditions of the mortgage loans available for foreign investors or expatriates that are residents of Dubai. Other guidelines that should be considered by the central bank to take a mortgage are as follows:

  • Foreigners or expatriates who want to invest in a real estate property that is valued at nearly AED 5 million have an option for borrowing nearly 75% of the total value of the property. On the contrary, citizens of the UAE have the option to borrow nearly 80%.
  • For real estate properties that are valued at AED 5 million or more, initial or first-time buyers have an option to borrow nearly 65% of the total value of the property. On the contrary, citizens of the UAE have an option to borrow nearly 70% of the value of the property. 
  • Expats that want to invest or purchase a second property have an option to borrow nearly 60% of the total value of the property.
  • If you plan to purchase off-plan properties, a deposit of 50% would be required from expatriates as well as citizens of the UAE.
  • The debt-to-income ratio of the buyer must not be 50% or more.
  • The period of the mortgage must not be more than 25 years. This is because there is an age limit (This is usually in the range of 60 to 75 years).
  • Foreign citizens have an option to make an application for a specific loan amount that should not exceed their yearly revenue or income by more than seven times.
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