Resale housing in Dubai: market features

Secondary housing in Dubai: market features

Despite the fact that the Arab Emirates belong to the countries of the Middle East, the situation on the real estate market here is significantly different from most other countries in the region. If, in general, the sale of apartments, houses and other objects in Middle Eastern countries are not in high demand among foreign investors, then the secondary residential real estate market in Dubai and other emirates is an exception. Let's briefly explain:

In general, the real estate market in the Middle East is characterized by severe restrictions and instability. In addition, additional fees and taxes have been imposed on secondary housing (until recently, secondary housing in Dubai was no exception). Therefore, residents of Europe, America and other continents have not shown and do not show much interest in acquiring real estate in the region. However, in recent years, the authorities of the UAE and, in particular, Dubai have made every effort to change the situation. A number of reforms aimed at optimizing it have been carried out here. To date, the secondary residential real estate market in Dubai is characterized by such features as:

• maximum transparency and accessibility;
• a large selection of diverse offers;
• well-developed infrastructure of the city;
• a powerful and diverse tourism sector;
• attractive conditions for business development.

All this is complemented by relatively low prices for secondary Dubai. Naturally, the comparison is made with similar regions of the planet (recall that Dubai is one of the international business centers). To date, investing in the Dubai secondary real estate market is a profitable investment in many ways. In this article, we will highlight the main advantages of such investments. Also here are the key features of the secondary market in Dubai, which you need to familiarize yourself with before choosing the optimal option for yourself.

Is it worth buying a second home in Dubai: advantages and disadvantages of the market

The answer to the question posed in this subtitle is unambiguous: such an investment will be profitable in all respects! Analysis of the secondary real estate market in Dubai in 2022 revealed a number of important advantages, including:

• Reliability and safety. Today, the UAE is one of the most politically stable countries. The authorities pay great attention to public order and control the situation with the help of strict laws (there are offenses for which the death penalty is provided). The crime rate in the city is one of the lowest in the world. Despite the high population, Dubai residents feel absolutely safe at any time of the day.
• Loyal tax policy. The taxation system for the purchase / sale of secondary real estate in Dubai is the most favorable for investors. 2% of the cost of the object and insignificant legal costs during registration are very insignificant costs compared to other international business centers. The tax system for secondary owners in Dubai is also loyal. The absence of VAT, tax on the income of individuals are just some of its advantages.
• Favorable environmental situation. Buying a secondary property in Dubai means a warm climate and a vacation on the seashore for 12 months. For those who can hardly tolerate high temperatures, all villas, apartments, houses and offices are equipped with the latest climate control systems. In addition, there are plenty of shaded areas with natural landscaping on the streets of the city, as well as outdoor pools for adults and children.
• Conscientious developers. At the beginning of the 21st century, the country's authorities created the most favorable conditions for real estate developers. Only the best of them received licenses. Despite the fact that developers are not related to the sale of secondary real estate, they are the ones who ensure the quality of construction work, and buyers have no questions about this.
• Fluency and residence permit. When choosing a secondary property in Dubai in the so-called "free-hold" zones, the buyer becomes the rightful owner of the property. It can be resold, leased, alienated and donated. These rights are inherited, which allows you to be fully confident in the reliability of investments. In addition, since 2019, a program for providing foreigners with "golden visas" (residence permit) has been launched in the country. They are issued for a period of 5 or 10 years, depending on the size of the investments made (from 5 and from 10 million AED, respectively).

The advantages of buying a second home in Dubai also include:

• the possibility of mortgage lending (minimum down payment — 50%);
• lower cost (with rare exceptions) compared to similar primary real estate objects;
• loyal pricing policy (the price per sq. m. decreases with increasing area, and not vice versa, as is often the case in the CIS market).

If you have any questions related to the purchase of secondary real estate in Dubai, you can always contact our consultants. Specialists will not only provide the necessary information, but also help with the selection of the optimal secondary facility that meets your requirements and budget possibilities.