Property in Dubai
Before investing in real estate, everyone thinks for what purpose he does it. Many want to receive additional income or simply increase their own savings buying villas in Dubai for expats. Only after decided on the purpose of investment, we can choose the right place for this place and develop a further strategy.
Real estate in Dubai as an additional source of income
If you are not going to live in the property you purchased in Dubai yourself, then you can rent it out and receive additional income for this. At the same time, you officially do not need to pay any taxes on the income received.
The demand for rental housing in Dubai is great. This is not surprising – after all, more than 90% of the two million inhabitants of the metropolis are visitors, the so-called expatriates. Most of them are not going to acquire their own housing in Dubai, but they all need somewhere to live, work and relax. Therefore, the rental market here is very developed, and real estate, especially residential, brings a high current rental income – much higher than similar real estate in Europe.
- If we talk about average market values, then for housing in Dubai today, the annual net income from long-term rental (that is, income minus property maintenance costs) averages 5-10% of its value. The spread of yields is due to differences in the type and category of real estate, its location and the cost of maintenance.
- At the same time, more expensive exclusive real estate, as a rule, gives a lower return in the form of rental income than mass housing in affordable projects.
In the event of renting out your home, the owner will be accountable for the upkeep of the building as well as the surrounding area. This includes security for the building, the cleaning and landscaping of the common areas (parking and swimming pool) garbage disposal, and more.
In general, these payments are made each year and can are priced between USD 20 and 80 cents per square meter, depending on the type of property. Temporary residents will pay for electricity and water, and if we are talking about a villa or townhouse, then for watering the lawn, but not for maintenance and landscaping of the residential complex.
It is safe to rent a property in Dubai. Having entrusted the affairs of a real estate agency, its owner can be located anywhere in the world, while the agency will, on behalf of the owner, pay the costs of maintaining the property, collect fees from residents, conclude lease agreements, and so on.
It should be noted here that the exchange rate of the local currency – the UAE dirham – is tightly pegged to the US dollar and is at the level of approximately AED 3.67 per USD 1, which means that rental income will be stable and you will not have to monitor currency fluctuations. Learn more about Investing In Dubai Real Estate at www.aksaraycity.com
Or as seasonal accommodation
If you are going to buy property in Dubai, then, of course, you know that this is not only one of the safest cities in the world, but also a developed tourist and business center that provides its residents with entertainment for every taste, as well as, of course, warm sea, temperature in which practically does not fall below +25 degrees all year round. Dubai also attracts expats by the fact that most of its inhabitants are foreigners. People from all over the world live here, and this cosmopolitanism does not allow any of the visitors to feel like a stranger.
It is not surprising that many of those who buy an apartment or villa in Dubai want to use their purchase as a distant summer house where they can come on vacation. You can entrust the management of your property in your absence to a real estate agency. It will deal with all issues related to your property, up to cleaning the apartment.
What’s more, having a property in Dubai that you periodically rest in, you can earn additional income by renting it out while you are away. Short-term rental housing will cover the costs of its maintenance, which must be paid by the owner. Moreover, you do not have to deal with cleaning and other household chores – all the questions will be settled by the real estate agency for you. Such a lease, which, on your behalf, will be handled by a real estate agency, is even more profitable than a regular long-term lease (net income can reach 10-15% per year of the property value).
Real estate agency in Dubai
Ax Capital agency provides a large catalogue of offers for every budget and requirements. Visit their website to find out the detailed information.