Reasons Why Real Estate Is a Good Investment
Let’s be honest, 2020 was a hell of a year. Full of restrictions and instability, it affected everyone and everything. The real estate market wasn’t an exception.
Due to the grand drop of the real estate market by 30% in the United States alone, the big crisis has begun. During the whole 2020, the supply of such property was greater than the demand for it. You may say that this is some American trend, and you will be wrong. A significant drop in the real estate market happened all over the world.
UAE is considered to be one of the top 10 best countries to invest in. Why? Thanks to the foreign-friendly policy of this country, investors can freely come, leave their money, and be sure that the profit will come in time. Now, in 2021, it is the best time to invest your money in property in this sunny country. Today we present to you three main reasons why investing in real estate is a great idea in 2021.
● Low-Interest Rates
Buying premium real estate was never cheaper than now in the whole modern history of Dubai. Due to the crisis, the price of real estate has decreased significantly. Such an issue made property sellers more flexible and ready to sell their properties for lower prices.
Local banks have also become more flexible, decreasing the mortgage interest rate to the record 2.7%. Financial experts believe that in the next couple of years, the UAE’s real estate market will recover enough to increase interest rates up to their pre-pandemic level. It is a perfect opportunity for you to buy the property you desire before it returns to its previous price and interest rate levels.
● Return on Resilience
2020’s quarantine showed that any work can be done from home, and there is no need to live in a city. According to statistics, in December 2020, the rental and purchase of countryside villas were twice higher than the purchase and rental of an apartment.
Still, the city is an important part of any country. Dubai may be considered the heart of UAE. All the public life is here. A bright example is Dubai Expo, which will take place at the end of 2021. Lots of tourists are expected to arrive there. This event is a chance for Dubai to return to its previous, pre-COVID, stable way of life.
Such a return on resilience will strongly affect the price of real estate in Dubai in the next few months. That is why we highly recommend you not to lose time, and start looking into the premium real estate in Dubai now.
When you decide to buy a property in Dubai, take a minute to think about what kind of property you will buy. Dubai, being a real beacon for inventors, can propose any kind of real estate your heart desires.
Dubai’s market is full of property ready for sale right now. Want to buy an apartment? Choose the desired location and the size of the area. What about some unusually styled villa? No problem – the local market is full of such propositions.
You must remember that some restrictions exist if you are not UAE’s citizen. These restrictions are such:
- The residential visa requirements. The UAE’s law on citizenship is strict. According to it, no foreign can get full citizenship there. However, you can get a visa as an investor in the UAE’s property. Based on how much you invest, different types of visa are available for you. You can get a three-year (AED 1 million and more invested) or five-year (AED 5 million and more invested) renewable visa. Also, if you are over 55 years of age and invested AED 2 million or more, you can also get a renewable visa for five years;
- The location you can buy property in. Some of the districts of the city are closed for foreign investors. Make sure to check what kind of districts are available for you.
- The ownership. In UAE, there are two common types of ownership – freehold and leasehold. If you get freehold ownership, you do not need to worry much. Your property is your property. Leasehold is an absolutely different issue. The first significant difference is the fact that, technically, the property is not yours. You can use it for up to 99 years. After that, it returns to the previous owner. Quite tricky, isn’t it?
Buying premium real estate in a foreign country is not only about its beauty and comfort it provides, but also about the law. You need to make sure that the purchase is completed legally to avoid further problems, don’t you? That is why, while searching for your ideal property, make sure to check Metropolitan Premium Properties. It is an international real estate company in Dubai, ready to offer you any help required at any time. Having offices not only in Dubai, but in Abu Dhabi, Vienne, and other cities around the globe. With Metropolitan Premium Properties you can always be sure that your best interests are taken into account by the experts.
Also, Metropolitan Premium Properties will take care of the fees you will need to pay, such as:
- 2% brokerage fee to the real estate agent;
- 4% transfer fee;
- Approximately AED 4,000 fee (registration of property);
- Approximately AED 500 fee (issuance of the title deed);
- Mortgage registration fees (if applicable – the fee is 0.25% of the loan value).
Summing up everything mentioned before, there is no better time to invest in Dubai’s real estate than in 2021. Low-interest rates, return to the previous stable active life, an increase in the number of tourists, the supply of property available for purchase – all of these factors play an important role in the real estate market’s life.
The Roman writer Publilius Syrus once said “A good opportunity is seldom presented, and is lost easily”. Even centuries after his death, these words stay true. Experts say that there will never be such a situation again. Never again will the real estate market experience such stagnation and sell the property so cheap. That is why you shouldn’t lose your chance to become a lucky owner of sunny Dubai’s property. Contact a real estate agency now – start your own journey in UAE’s real estate market.
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