Many individuals are looking to invest in Dubai, especially when it comes to the real estate sector, but things may differ if the investor is a resident of the country or outside it, and therefore there are some things that he must follow, as he may find it difficult to manage and rent the property.
جدول المحتوى
ToggleDubai Real Estate Investment Tips for Foreigners
There are many reasons why individuals are looking to buy real estate in Dubai, especially with the flexible payment plans provided by banks or real estate financing companies to the buyer. The United Arab Emirates has been ranked as one of the safest countries in the world in 2020 in the field of investment, which makes it an incentive for foreigners to establish a company in Dubai, as the advantages of owning a property in Dubai and its suburbs are many and varied.
Especially after the issuance of the law on foreign ownership of real estate in the Emirates, which specified the freehold areas in Dubai and the rest of the Emirates’ cities, in addition to the laws on permanent residency, long-term residency, and many other facilities and incentives provided by the state to foreigners.
Property location
The first rule we provide regarding investment in Dubai for foreigners is that these properties should have high investment returns, i.e. choosing the best place for real estate investment in Dubai that contributes to raising the return on investment, in addition to the service and entertainment facilities near or affiliated with the property, including educational institutions, parks, shopping centers, health care centers, and others.
Real estate agent
Next on the list of Dubai investment tips for foreigners is dealing with the right real estate agent, who will help you provide advice and inform you of market trends and the list of the best real estate investment areas in Dubai. The real estate agent will also save a lot of time in the process of searching for the right property.
Choosing a Property Management Company
Continuing within the real estate investment tips in Dubai for foreigners, we come to the importance of using the services of property and real estate management companies, due to their effective role in managing properties for foreign investors who cannot manage and supervise them personally, in addition to the services they provide to investors regarding legal requirements and so on.
The property management company also undertakes the task of maintaining the investor’s assets and the appropriate form of residence in them. These services also work to reduce maintenance costs for customers thanks to the discounts they receive through cooperation with local maintenance companies, in addition to its role in collecting rent amounts and resolving rent disputes, such as bounced rent checks, non-compliance with monthly installments, and others.
Legal Aspects of Investment in Dubai
There are many legal aspects related to Dubai real estate investment terms for foreigners that investors have to deal with, especially if their purpose of investment is to lease back, such as Ejari, a government-run program that regulates all rental contracts in Dubai.
According to the Dubai Rental Law, all rental contracts in Dubai must be registered online through the Ejari portal, which aims to ensure that all private rental contracts in the emirate are based on the government-approved form and are legally binding. Therefore, hiring a professional real estate company that is fully aware of all Ejari procedures can make it easier for investors from abroad to complete some legal aspects.
Informing the investor of all developments
We conclude our list of tips on how to invest in Dubai for foreigners with the importance of obtaining financial reports that make the cooperation between foreign investors and property management companies more transparent. Therefore, it is wise to choose a company that has a proven track record of keeping foreign clients informed of all developments, most importantly ensuring that the services listed provide timely data that includes clarification of private property expenses and income on a monthly basis.
This also includes financial records of any items that have been replaced and lists of maintenance work. To be sure, the investor can find out and review the methods these companies use to process payments from tenants and how they redirect funds to them.