United Arab Emirates is listed among the wealthiest regions on the earth. The oil rich country has successfully diversified its economy after investing petro dollars in business, trade, tourism, finance and real estate sectors. The zero tax regimes on monthly income or for personal assets make this country heaven for investors and foreign job seekers willing to improve their standards of living. A decade back foreigners were not allowed to buy real estate, leasing used to be the only option they can avail for their accommodation or business. Later, implementation of freehold property law in year 2002, empowered foreigners to buy assets in designated areas of specific emirates. Dubai was the first among all seven emirates and allowed overseas buyers to buy real estate assets not only to fulfill personal accommodation needs but also as an investment. Having observed the positive impact of this bold decision, the neighboring emirates of Abu Dhabi and Sharjah open their asset market for overseas buyers as well.
Why buying residential property can be profitable?
Residential properties for sale in UAE have emerged the most profitable investment among all. There is a very good margin of earning profits. Whether you resell your investment asset or you rent your asset, you can generate profits in short and long run respectively. Here a question may arise in your mind, why reselling and renting residential assets is profitable? To answer this question I would like to discuss few factors that may not directly associated with these common profit earning methods. The central location at the cross roads of major continents of Asia, Africa and Europe has made UAE easily accessible with maximum flight distance of eight hours. Secondly warm winters, white sandy beaches and year round sunshine, negligible crime rate and luxury life style, adventure and entertainment venues efficiently dragged tourists and holiday makers. People are now considering United Arab Emirates not only to relocate to find second home but also to spend a memorable time with their family and friends. Irrespective to their reason or duration of their visit, they need suitable accommodation. This has directly increased the demand of residential assets in UAE. If you are a home owner you can simply rent your house and earn good money in the form of rent. Or if you want to earn profits after reselling your villa or apartment you are allowed to do it as soon as you find the right buyer.
How State government and financial institutions facilitate property buyers?
In addition to approving free hold ownership rights to overseas buyers, State government and financial institutions in UAE also designed reasonable mortgage structure to provide financial assistance for local and foreign buyers alike. Currently, local or Emiratis buyers are eligible to take mortgage of 80% of the total value for their first purchase and 65% of the total value for their second purchase. Whereas, expatriate or overseas buyers are allowed to avail mortgage of 75% of the total value for their first purchase and 60% of the total value for second purchase. For off plan property investment, all buyers irrespective to the nationality, will only be able borrow 50% of the total value of purchase. The maximum age limit at the time of repayment of last installment of loan is 65 years for expats and 70 years for nationals. Loans are issued for maximum of 25 years.
Residential property types available for sale
Major residential properties available for sale in UAE include villas, apartments, studio apartments, resorts, hotel apartments and hotels. You can choose a suitable asset type to invest your money in any type of them after considering your interest and budget.
Besides earning profits after buying residential property in UAE, you can also enjoy 3-year residency VISA that can be renewed easily. Being a home owner in this country will make you feel privileged to have a second home in the regional hub of Middle East.