Real estate investment in the Emirates is one of the successful practical ideas for building permanent sources of income and lucrative profits for Arab and foreign businessmen who desire to invest their money in a guaranteed way and with satisfactory positive results, in light of the urban and economic progress witnessed by the Emirates in its various regions and suburbs and the legal facilities that make it a safe and attractive environment to attract Capital from many countries, and starting their emerging or advanced projects at the level of purchasing, owning residential and commercial real estate and achieving profitable returns and increasing financial wealth. But within special and specific conditions and requirements, we will review them with you throughout our next article on the website Propertiesportal.ae to be a detailed guide that explains the reality of real estate investment in the Emirates and lists its advantages and disadvantages, while pointing out the best areas in which you can invest your money with complete safety and confidence.
Real estate investment in the Emirates
Real estate investment in the Emirates involves owning a property and renting it for remunerative monthly sums. As well as contributing to real estate investment funds, which are considered real estate portfolios listed on the UAE Stock Exchange, and obtaining their profitable returns which are traded periodically.
- The real estate investment sector in the Emirates has witnessed a great boom recently, in conjunction with population growth and the increasing number of foreign arrivals annually to the United Arab Emirates who desire to expand their careers within a safe and fertile global economic and commercial center at all levels.
This type of money operation has also become a stimulating and successful mean for every expatriate investor who wants to increase his financial mass effectively and profitably, in addition to obtaining a residency ranging from 2 to 10 years depending on the value of the property he owns.
Who can buy real estate in the UAE
The UAE government allows the purchase and investment of real estate for the following categories:
- Citizens of the United Arab Emirates, they can purchase real estate with full ownership and anywhere throughout the geographical area of the country.
- Arab investors from the Gulf Cooperation Council countries, such as Saudi Arabia, Kuwait, Bahrain, and Qatar.
- Foreign investors from different countries around the world can buy and rent real estate within what is known as the free ownership system and under specific conditions, according to which the foreign owner obtains golden residency in the UAE.
Why investing in Dubai – UAE
Investing in Dubai – UAE is a requirement for many Arab and foreign investors, due to the following:
- A stable and diversified economy that comes from several commercial, oil, real estate, and industrial sources.
- The distinctive geographical location for trade exchange between three continents: Europe, Asia, and Africa.
- The security and safety that the United Arab Emirates enjoys, and the absence of any crises or problems in it.
- Tax exemption in the real estate market.
- Achieving high profits and investment returns from real estate compared to other types of investment.
- Availability of high-quality infrastructure and the finest and latest public and private services and facilities necessary for residence and work.
Types of real estate investment
The following types fall under the name of real estate investment:
-
Investing in residential real estate.
-
Investing in commercial real estate.
-
Investing in industrial real estate.
-
investing in Lands.
-
Investing in real estate funds.
Types of Real estate investment in the Emirates
Investing in residential real estate
Investing in residential real estate, whether in the Emirates or other countries, involves the investor or investing company purchasing homes within residential complexes and buildings that belong to a specific owner. This is done according to an official sale agreement documented by the relevant authorities, and then the buyer (the new owner) can rent the house for a specific period and receive a monthly fee agreed upon between him and the tenant. The owner can also sell the house he purchased after a short or long period at a higher price and benefit from the price difference as a good profit return, thus successfully investing his money in a guaranteed and reliable way.
Investing in commercial real estate
Commercial real estate investment is considered the best and most profitable among all types of real estate investment in the Emirates, especially in Dubai. It includes buying and selling stores, offices, and even land intended for residential and commercial construction. It also requires large capital to purchase expensive real estate; Therefore, it is mostly limited to investment companies and institutions based on huge capital and distinctive practical and economic expertise to ensure achieving profits and avoiding losses as much as possible.
Investing in industrial real estate
Investing in industrial real estate is considered a simple and guaranteed type of investment to earn money in the short term. Where the investor can buy and sell warehouses, factories, workshop locations, and small workshops with the machines present in them. It is also possible to invest large areas of ground floors to implement industrial projects there without wasting any additional expenses, and then rent them for several years with long-term contracts, in exchange for high sums of money.
Investing in lands
The land investment market is witnessing great popularity, due to the financial profits it brings to investors. This is done by purchasing areas of land designated for construction on and preparing the infrastructure for residential and commercial projects. In addition to, supplying it with the necessary facilities, such as water and electricity, and selling them in their current condition to construction and real estate contractors, achieving high profitable returns.
Investing in real estate funds
Real estate investment funds are companies that own different types of commercial real estate, such as stores, restaurants, hotels, and offices. It allows investment in its own stocks within the stock market which is available in many countries of the world, including the stock market in the Emirates, and in this way a person invests in real estate of corporates without the risk of owning the property and trading in it.
Conditions for real estate investment in the Emirates
The UAE government has set a number of conditions for accepting applications from investors in its real estate buying and selling market as follows:
| Conditions for real estate investment in the Emirates for citizens and expatriates from Gulf Cooperation Council countries | Conditions for real estate investment in the Emirates for foreigners |
| The investor must be a citizen of the United Arab Emirates or a citizen of the Gulf Cooperation Council countries. | The investor must commit to purchasing or leasing the property within the free ownership areas designated by the UAE state. |
| The property must be fully owned and in different areas. | The residential or commercial property must be registered with the Land Department of each emirate in which one desires to invest. |
| The buyer must commit to conducting all legal transactions and paying the obligations and fees incurred. | The buyer must commit to paying all fees and payments, including Land Department fees, mortgage loan fees, property registration fees, and mortgage registration fees. |
| The investor must commit to the system of benefiting from ownership of invested residential properties for a period of 99 years in the areas specified for investment. |
Documents required to purchase real estate in the UAE
Those desiring to buy and invest in real estate in the Emirates must complete the following official papers and documents:
- National ID for the owners who are UAE citizens.
- A certified copy of the foreign investor’s valid passport.
- Residence visa or a copy of the residence permit for the foreign investor.
- The purchase and sale contract, or what is known as the memorandum of understanding, and the commitment to its terms and conditions.
- A no-objection document authenticated by the previous owner of the property, guaranteeing the safe transfer of ownership to the buyer, noting the payment of due fees.
- an official power of attorney document in case that the investor relies on an attorney or representative to conduct the purchase and sale transaction for any real estate.
- Obtaining approval to sell from the Land Department if the property was purchased through mortgage loans.
- Issuing the property title deed in the name of the buyer to present it upon request and confirm his legal investment in the property.
Advantages of real estate investment in the Emirates
Real estate investment in the Emirates is characterized by the following positive advantages:
- The possibility of foreign investors obtaining a UAE residency visa known as a real estate visa. This has a residency period of 2 years, 5 years, and up to 10 years, depending on the value of the real estate owned.
- Giving investors in free ownership areas the opportunity to obtain golden residency and enjoy its many features and benefits.
- The UAE government also provides facilities for completing purchase and sale transactions with the aim of stimulating real estate investment, whether through traditional office means or via the Internet.
- Reduction in fees and costs of buying and selling procedures within the UAE real estate market for residents and expatriates.
- Obtaining good to excellent profitability returns for investing money in buying and renting homes, shops and other real estate in the Emirates.
- The growth of UAE real estate prices due to its presence in a stable, fertile economic environment, as well as technologically advanced, is rapid and noticeable.
Disadvantages of real estate investment in the Emirates
The most prominent disadvantages of investing in real estate in the UAE are as follows:
- Buying real estate in the Emirates requires a rather large budget and is therefore not suitable for people with limited income.
- The government limits real estate investment for foreigners within what is known as free ownership areas only spread within the UAE territories.
- The foreign investor is subject to a number of conditions and laws that are, for some, stringent.
The most popular free ownership areas in the UAE
Real estate investment locations in the Emirates are diverse within the following free ownership areas:
Free ownership areas in Dubai |
Free ownership areas in Abu Dhabi |
Free ownership areas in Sharjah |
Arjaan |
Reem |
Muwaileh |
Dubai International Financial Centre |
Al Raha Beach |
Al Juwaizea Suburbs |
Downtown Dubai |
Yas Island |
Al Tayy |
Jumeirah Hills |
Al Reef |
Sharjah Waterfront City |
Jumeirah Golf Estate |
Saadiyat |
Al Khan |
Remraam |
ALJADA |
|
Dubai Culture Village |
Sharjah Sustainable City |
|
Dubai Sports City |
||
Emirates Hills |
||
Jumeirah Lake Towers |
||
Al Warsan |
||
Dubai Marina |
The best real estate investment companies in the Emirates
The best companies for real estate investment in the Emirates fall into the following list:
-
Dubai Real Estate Investment Company in Dubai.
-
Majid Al Futtaim Real Estate Company in Dubai.
-
Tebyan Real Estate Development Company in Dubai.
-
Al Barari Real Estate Company in Dubai.
-
Aldar Properties Development Company in Abu Dhabi.
-
Emirates Real Estate Corporation in Abu Dhabi.
-
Mubadala Company in Abu Dhabi.
-
ARADA Real Estate Company in Sharjah.
-
Tilal Real Estate Company in Sharjah.
-
Alef Real Estate Group in Sharjah.
The best real estate financing banks in the Emirates
We have chosen for you the best banks that provide real estate investment loans in the UAE, as follows:
-
Commercial Bank of Dubai.
-
Abu Dhabi Commercial Bank.
-
First Abu Dhabi Bank.
-
Emirates National Bank of Dubai.
Real estate investment at Commercial Bank of Dubai
Commercial Bank of Dubai grants many banking benefits for real estate financing services as follows:
- Real estate investment loans in the UAE for citizens and residents.
- Possibility of obtaining a loan if you wish to purchase a residential property in Dubai.
- Obtaining a loan if you want to invest in a property under construction.
- The value of real estate financing reaches up to 20 million UAE dirhams.
- The repayment period spreads over a period of up to 25 years.
- There are no fees charged for the loan transaction process.
Real estate financing at Abu Dhabi Commercial Bank
Real estate investment loans in the UAE at Abu Dhabi Commercial Bank are characterized by the following:
- Providing real estate financing services to citizens and residents.
- The percentage of real estate loans reaches up to 85% of the property value for national clients.
- The value of real estate loans reaches up to 80% of the property value for resident customers.
- Interest rates start from 4.75%.
- Repayment periods are flexible and spread over a period of up to 25 years.
- Possibility of partial payment at any time upon the investor’s request.
Real estate financing at First Abu Dhabi Bank
First Abu Dhabi Bank offers the following group of real estate investment loans:
- Real estate financing for non-residents in the UAE in amounts up to 10 million UAE dirhams, with flexible repayment periods.
- Real estate loans for small buildings in amounts up to 100 million UAE dirhams, or 70% of the property value, with repayment savings spread over up to 20 years.
- Real estate financing for residents and investors in the UAE up to 85% of the property value.
Real estate investment at Emirates NBD
Emirates NBD provides distinguished services in terms of real estate investment loans, which are as follows:
- The value of the real estate loan reaches up to 20 million dirhams.
- Repayment periods spread over a period of up to 25 years.
- Real estate financing up to 80% of the property value.
- Loan application fees are free.
How to Own Investment Apartments in Dubai
You can buy and own an investment apartment in Dubai by following the following steps:
- Determine the investor’s financial budget, and based on that, the apartment is chosen.
- Determine the best and strategic location to purchase an apartment, whether in the city center or its distinctive suburbs.
- Accurate and extensive search for buying an apartment through real estate offices and real estate search platforms for apartments.
- Finding the appropriate apartment and concluding a sales agreement between the seller and the buyer in the presence of the real estate agent.
- Documentation of the sales agreement contract within the Dubai Land Department.
- The buyer submitted a request to transfer ownership of the apartment (no objection certificate) from the old owner.
- Pay all fees incurred by the new owner to complete the entire purchase process, and document ownership with the Dubai Land Department.
Excellent investment opportunities in Dubai for 2023
The best investment opportunities in Dubai for the year 2023 are as follows:
-
Real estate investment: includes buying, selling and renting residential units and apartments, as well as commercial and industrial real estate and lands to all investors from Arab and foreign countries.
-
Investing in the Dubai stock market: includes trading stocks in the UAE stock market and achieving high profits through it.
-
Investing in national bonds: This investment opportunity achieves a high-profit return by purchasing bonds through the post office or from the Internet.
-
Investing in investment funds.
-
Investing in gold.
-
Investing in digital currencies.
-
Investing in Forex.
The best countries for real estate investment
The best countries for real estate investment are as follows:
Country name |
Real estate investment features |
| United Arab Emirates Dubai | Investing in residential, commercial and industrial real estate and lands.
Honesty and credibility in completing investment projects. Granting a long-term residence visa. Tax exemptions on investment projects. |
| Kingdom of Saudi Arabia | Providing all types of real estate investment for citizens and expatriates.
Achieving effective participation of the government and private sectors in investment activities. Earn high profits from rental yields for foreign investors. |
| USA – California | Providing various investment opportunities.
Real estate prices for sale and rent are high. Economic growth and stability strongly support the real estate market. |
| Canada – Ontario | Continuous growth of the industrial and residential real estate sectors.
Providing government facilities for routine investors’ transactions. |
| United Kingdom – London | A huge market that brings together capital from all over the world.
Diversity of real estate investment opportunities, especially residential and commercial. |
| France – Paris | The prosperity and growth of the real estate market over the past years and up to the present time.
The security and safety enjoyed by investors of all nationalities. |
| Spain – Barcelona | Growth of the residential real estate investment market.
Providing all facilities to foreign investors. |
| Japan – Tokyo | A leading global economic center.
Prosperity in buying and selling residential and commercial real estate. |
Real estate investment strategies
The most important real estate investment strategies fall within the following list:
- Wholesale strategy: It relies on negotiation and marketing with the aim of finding special deals for investment properties and then reselling them for a small percentage of profit.
- Long-term rental purchase and hold strategy: This strategy aims to purchase properties and hold them for a long period while benefiting from their increasing price value or rental income over several years. Then it can be sold at the right price and make a high profit from it.
- All-cash renting strategy: An important strategy based on increasing rental income in general and achieving accelerated financial growth for the investor.
- Barter strategy: An investment plan for rental properties, which allows the exchange of a smaller property for a larger property while benefiting from the price difference.
- Syndicated loans and crowdfunding strategy: An effective method for real estate investment, which aims to pool investor funds into a single cash block for the purpose of purchasing real estate or obtaining assistance loans to complete the large amounts of real estate purchases.
- Real estate investment funds strategy: It allows the investor to own shares in well-known companies within the stock market, and also allows the ownership of a profitable commercial property available on the stock exchange.
The best time to purchase real estate for investment
The ideal times to purchase real estate for investment fall within the following options:
- The best time to buy a property for investment is January.
- The winter months are very suitable for buying and investing in real estate in the UAE and other countries.
- It is preferable not to buy real estate during the summer or annual vacation periods, as the real estate market is witnessing great demand and an increase in prices as a result of everyone’s enthusiasm for purchases.
The best method for real estate investment
There are many real estate investment methods in the Emirates, the most famous of which are the following:
-
Residential real estate investment (sale, purchase, rent).
-
Residential land investment.
-
Commercial real estate investment (shops, offices, companies).
-
Land investment (sale, mortgage, reclamation).
-
Investing in industrial real estate (factories, factories, and workshops).
-
Administrative real estate investment.
The importance of real estate investment
The importance of the real estate investment field lies in the following points:
- A guaranteed source of earning money and maintaining its monetary value, compared to other investment methods. Whether in gold, stocks or cryptocurrencies.
- Achieving permanent and increasing passive income by renting various types of residential and commercial properties.
- Not being affected by any inflation in the country, as real estate prices increase beyond the inflation rate.
The Main Reasons for The Failure of Real Estate Investment
The most prominent reasons leading to real estate investment failure are the following:
- Lack of advance planning in choosing the most appropriate type and method of real estate investment, whether in the field of residential, commercial, industrial or land investment.
- Feeling frustrated whether not receiving the expected profits, and thus the desire to continue investing decreases.
- Purchasing real estate without considering the budget and remaining financial balance, which causes financial distress and may sell the property at low prices.
- Not obtaining sufficient real estate loans to purchase the desired property, and causing more debt.
- Not analyzing the real estate market well and checking prices and property values and updating them constantly.
With this amount of information, we have reached the conclusion of our article, in which we reviewed the secrets of real estate investment in the Emirates, and the most important details about real estate investment in its general and comprehensive sense, including its conditions, requirements, features, the best locations for it, and the banks that grant real estate financing loans to Arab and foreign investors.
Here it is necessary to note the importance of entering the Emirati real estate buying and selling market, as it is one of the safe and reliable economic and real estate destinations, and begin to engage in the actual experience and prepare to earn profits in a legitimate and guaranteed way, and perhaps obtain golden residency throughout the United Arab Emirates. However, it is necessary to adhere to the legal conditions and rules imposed by the UAE government.
