Dubai is becoming an increasingly attractive destination for investors, as well as lovers of skyscrapers, luxury and nightlife. Families can find in this beautiful city exactly what many are looking for and struggling to find: a safe place to raise their children.
But Dubai is also a forward-thinking city, ideal for all forward-looking investors looking for resources and support to develop their businesses. It is a young and dynamic city that opens its doors to innovative ideas and progress, offering incredible opportunities for growth, and is becoming a preferred location for more and more talent. The national currency offers an enviable security that can win the hearts of billionaires from all over the world, who therefore choose Dubai to invest in their future. The excellent ten-year plans are not just on paper, they are there for all to see, thanks to the constant and relentless efforts of the entire community.
The Dubai property market is enjoying a particularly flourishing period in its history, thanks in particular to the conditions it is able to offer, conditions that are almost surreal compared with those in other countries. Transaction statistics are increasing exponentially every month, and the growth seems unstoppable.
Residential property in the United Arab Emirates is a priority for investment in the international market. The main reasons contributing to the increase in demand are attributed to the numerous government initiatives, the growing population and the improved quality of life.
The wide range of properties available in Dubai can confuse even the most experienced investors, but the return is assured whether you opt for 'flipping' or for short- or long-term rental. That's why it's essential to seek the advice of a property expert like Stéphane Maman from Prestige Immobilier Dubaï, who, by constantly monitoring the market, will be able to provide you with the best possible guidance in your choice.
The primary market is all the more attractive for an investor because Dubai developers offer the possibility of buying a property in instalments without any interest. It is these famous payment plans that raise doubts and perplex European investors, who are always on the lookout, futilely in this case, for a possible scam.
In fact, this strategy was designed precisely to attract international investment, so that the state could safeguard the funds: at the start of construction of each property, a special current account is opened, which will be managed by the state until the keys are handed over. All the investor's money will be deposited in this current account, which the builder will only be able to access once the construction work has been completed. This method avoids any delays in handing over the keys and the additional costs that this entails.
Investors can also opt to rent out their properties. The rental Dubai real estate sector occupies a significant share of the market and brings stable long-term profits. With the right approach, short or long-term rentals can yield a net gain of 8-12% per annum, a truly significant gain compared to other states around the world.
Most residential complexes in Dubai include swimming pools, gyms, green areas, children's play areas, security, concierge services and more. To cover the costs of these services, the property owner must pay service charges (comparable to condominium fees), even if the property is rented out.
The total cost is calculated according to the size of the property and amounts to around €30-60 per m2 per year. In the case of a long-term lease, the tenant will have to pay all other bills.
To simplify things further, it is possible to turn to companies that deal specifically with the management of these activities. An owner may not even be physically present in Dubai, so income received will be transferred directly to his or her bank account.
The ownership certificate that is issued for properties under construction is OQOOD. This certificate certifies that the named person is the owner of the property under construction. However, to carry out certain transactions (for example, resale), it is necessary to obtain a title deed.
The title deed, on the other hand, is issued on completion of the work and is in fact the deed of full ownership certifying that the designated person owns the property and is therefore authorised to carry out certain transactions independently.
The answer in this case is short and to the point: the only tax to be paid when buying a property is the 4% DLD tax, and this must be paid to the State for registration of ownership. To complete the picture, you can add a few hundred euros needed for administrative costs, but in general, there is no tax on income, capital gains, gifts or inheritances.
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