Dubai and Abu Dhabi the Most Searched for Properties

A country of superlatives, the United Arab Emirates is one of the Middle East’s fastest growing nations. Its futuristic vision has made it possible for the city to conceive of and complete projects ranging from the world's tallest building, an island in the shape of a palm tree and the upcoming, world’s tallest Ferris wheel.

he UAE is also a city of contradictions in a sense. While the country is making strides to preserve its cultural heritage, it is also embracing new age technological advancements. Consequently, working and living in the UAE, particularly its key emirates, Dubai and Abu Dhabi, can be an exhilarating and rewarding experience given its strategic location and dynamic tax-free lifestyle.

Being the most searched cities in the UAE for real estate, Dubai and Abu Dhabi have a lot to offer savvy investors and end users. From budget and mid-range to luxury properties, the emirates feature some of the world’s finest trophy homes.

Experts reveal that this year is expected to be one of maturity and solid consolidation for Dubai properties and Abu Dhabi properties.  As for Dubai, it has been a buyer's market for a while now. With prices dipping and developers offering attractive payment plans, the outlook for the market is positive. Furthermore, while prices of Dubai properties have dipped, the rental market has remained strong given the rise in expat population and number of jobs with all the infrastructure investments planned around the mega Expo 2020 event. So, while it is true that the market is experiencing a slowdown and a further dip in prices may be inevitable, it’s important to note that it is a phase of healthy correction. Further, given Dubai’s ongoing investment in infrastructure, 2016 is a stable year for Dubai properties.

As for Abu Dhabi properties, numerous projects such as Mamsha on Saadiyat Island, Ansam, Mayan and West Yas on Yas Island and Al Hadeel on Raha Beach are expected to come online next year. The emirate offers a diverse unit mix with most developments less than five years old and are popular with tenants.

The real estate market in the UAE continues to mature as we see increased protections to investors with the introduction of RERA regulations giving it a layer of solid credibility and stability. Moreover, the country’s population is growing, further raising the demand for homes in the market.

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Property Ownership Types in United Arab Emirates

United Arab Emirates has transformed itself into an ultra modern well constructed city from an undeveloped community of pearl divers and fishermen. UAE consist of seven emirates, Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah. Among them Abu Dhabi and Dubai have been recognized on international level for their tremendous growth and development in business, real estate and tourism sectors. Soon after the discovery of oil reservoirs in 1962, State Government started investing its petro dollars to built-up city infrastructure and real estate projects in commercial, residential and retail sectors to provide comfortable living space and modern lifestyle amenities for everyone living and visiting the country. With aim to reduce its dependency on oil export, government has taken several initiatives to improve business, finance and travel and tourism sectors.

UAE has been an ancient trade route for Asian, African and European countries, as it is located on the cross roads of these continent. After observing the rapid progress thorough out different sectors, governmental authorities implemented policies to facilitate foreign investors and entrepreneurs so that they consider making investments in UAE. Moreover, developers also constructed holidaying spots, entertainment and leisure activities to attract tourists across the world. Having considered the business, investment and entertainment opportunities, foreigners or non UAE nationals started choosing UAE as their second home for business, entertainment and career growth.

Why expats are showing interest in buying assets in UAE?

Strategic efforts enabled UAE to drag huge number of expats, travelers and entrepreneurs every year. Developers have constructed a wide variety of short stays and accommodation options to cater the needs of its visitors. Short stays can be rented for few hours to several days, weeks, months or even years. Such options are perfect for those who don’t have plans to stay for longer period of time. Usually second home seekers, investors and entrepreneurs are willing to buy residential and commercial units to accommodate themselves for longer periods of time. The primary reason to think about becoming the property owner in UAE is to save money in long run because rents are tending to rise.

Initially foreigners were not allowed to buy properties anywhere in UAE. What they were allowed to do is to rent or buy properties with 99 year lease. Having considered the interest of expats in buying residential and commercial assets in UAE, Government started thinking to give freehold ownership to foreigners in designated areas all over the UAE. Currently there are no federal property laws in UAE. Rather, emirates have individually developed their own rules and regulation for real estate sector.

Dubai and Abu Dhabi credited to be first to offer free hold property ownership for foreigners

Dubai and Abu Dhabi are the two leading emirates of UAE in terms of business and overall economic growth. It has been observed that most of the expats and foreign entrepreneurs prefer moving to anyone of these emirates for job, business and investment purposes. In fact, Dubai shows a unique mix of 80% expats and 20% locals in its population. It has been recognized as true melting pot of cultures. Dubai is the first UAE emirate which allows foreigners to purchase residential and commercial assets with complete ownerships rights like a local. Furthermore, Abu Dhabi has recently announced in January 2014 to offer freehold ownership for residential assets in specific investment zones of this emirate.

Current Property Ownerships in UAE

Currently there are other property ownership types in UAE. Tenants and buyers are suggested to find the right category accordingly to acquire certain ownership to use property. In addition to in freehold property ownership, other ownership rights include the following types:

Leasehold: It’s kind of contractual right that allows tenant to use existing property without giving any right on the piece on land on which it is built. You can’t sell or transfer lease on your own to another. Leases are issued for 99 years.

Usufruct: It is a real property right, which grants holder to make profits from property which is actually the property of another person. As long as the unit is not damaged or destroyed. Usufruct is usually issued for 50 years.

Muastaha: To some extent is similar to usufruct. It grants user a right to construct the unit to earn profits. Usually real estate developers are more interested to obtain this kind of ownership for their projects.

Dubai and Abu Dhabi have designated special areas for foreigners or non-GCC and non UAE nationals where they can avail freehold ownership for properties.  Dubai Land Department and Abu Dhabi Municipality are the real estate regulatory bodies to regulate real estate and property ownerships issues for foreigners and locals. 

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