Investing in the United Arab Emirates (UAE) – Real Estate
Demand in the UAE for all types of real estate is great and ongoing - to meet this, around 50-60,000 new properties are currently being built each year just in Dubai alone - and foreigners can purchase residential property throughout the Emirates with very few exceptions.
The real estate market for investment properties in the UAE is accordingly very attractive, which is why we also recommend our clients to invest in buying a property in the UAE.
Real estate investment with high returns
There is a wide range of properties on offer in the UAE that meet all requirements and are significantly more affordable than similar properties in other countries and promise high returns.
You can buy medium-sized apartments, town houses or smaller villas in contemporary high quality for a purchase price of around 3-400,000 to 1,000,000 euros.
So-called Off-plan properties - i.e. properties that are still in the construction phase - can be bought from as little as EUR 200,000.
The properties guarantee realistic returns of 8-15% and can also be easily rented out.
Good conditions of purchase
Most real estate in the UAE is bought by foreigners (approx. 85%) accordingly banks in der UAE also offer financing for foreigners.
When buying an existing property, as a resident (e.g. company owner) you have to contribute 20% and as a non-resident 50% of the purchase price as equity.
The interest is around 5% (but higher for non-residents), the purchase of a property pays for itself in 10-12 years.
No bank credit is granted for off-plan properties, but the paid purchase price is deposited (safely) separately from the assets of the construction company and a price guarantee applies for the construction period. EMAG and DAMAC are the two largest construction companies in the UAE, each with shares from the ruling families as a guarantor for completion.
The purchase is generally exempt from property tax and the rental income is not subject to any tax either - the profit from real estate can be calculated purely.
Real estate property can also be resold, rented out or inherited.
Do you want to become a resident in the UAE and get financing at best conditions?
Are you interested in buying real estate in the UAE? Contact our law firm, we will help you to realize your investment plans!
Katona & Partners Attorney at Law
Phone: +361 225 25 30