Property For Rent or Sale: Everything You Need to Know to Avoid Scams and Pick a Good Neighbourhood
10:11 pm | 19.08.2023
Foreigners are massively buying up housing in the UAE to prepare the ground for relocation. At the same time, for those who only plan to move, it is not always clear in which area it is best to buy housing, how to find a specific object, and what to focus on in the choice.
Real Estate in the Emirates
In the Emirates, real estate demand is breaking records. According to The Economist, in the first six months of 2022 foreigners bought more real estate in the country than in the last year.
To come to Dubai, most foreigners do not need to pre-qualify for a visa. It is valid for six months and allows you to stay in the country for up to 90 days from the time of entry. Then you can get a local residence permit by registering here as a legal entity or investing in real estate for $ 205 thousand.
In recent years, the Emirates has significantly strengthened its economy and become the driving force behind the MENA region. So far, other world financial capitals (New York, London, Hong Kong) have been losing ground for various reasons. Thanks to the influx of capital, the local real estate market is actively developing and, according to our estimates, will grow by 8% per year over the next three years.
Dubai is the most secular city. There are more than 80% of expats, so you will hardly feel «alien in the Arab country».
Thailand and Indonesia can compare in attractiveness with the Emirates. There you can get a visa on arrival, and the real estate markets are actively growing – there is an opportunity to profitably rent housing to tourists.
In Thailand, as in the Emirates, you can get a residence permit by buying a property worth from $ 316 thousand.
How to Choose an Apartment
It all depends on the purpose of the purchase. Rental housing should be sought in coastal areas – for example, Dubai Marina, Palm Jumeirah. At the same time, you have a greater chance to rent a housing profitable and get from 7% per annum if it is specific and has no more than two rooms. Indonesia and Thailand have similar rules.
Apartments for further resale should be sought in undervalued areas, for example, in Business Bay, Al Jaddaf, and Nad Al Sheba First. They occupy advantageous locations in terms of proximity to water and major tourist attractions.
However, they are not fully developed in terms of infrastructure. So while housing here is cheaper than in the hottest locations of Dubai (eg, Downtown).
The Business Bay property price is 1.5 million AED and Downtown is 3,099 999 AED.
How Not to Run into Scammers
It is easy for a newcomer to come across fraudsters and unscrupulous realtors. For example, in Dubai, brokers often artificially inflate prices or post fake ads on the Internet.
collect feedback on brokers and developers, and better communicate with their customers directly;
study the procedures for buying and selling, transferring money, and opening accounts in official sources;
compare data about objects from different sources;
seek advice from several experts;
contact experienced expats for advice;
always conclude contracts;
check your documents with a trusted lawyer.
How to Buy Property Abroad
It is possible to use automatic services that collect data about objects on the market, demonstrate the dynamics of prices and make forecasts.
Choose a country for relocation with simple entry conditions and economic prospects;
Find out whether in the chosen country you can get a residence permit for investment in an apartment, and how much money for this will be required;
When choosing an apartment or house, start with the purpose of purchase: for yourself, look for objects in low-cost areas, where there is already or there will be the necessary infrastructure, for rent – small view apartments, for example, at the water, and for further resale – objects in undervalued areas;
Find a reliable assistant familiar with the nuances of the local market, or use technology services.