What do you need to know about new projects in Dubai?
Whether you want to invest in Dubai or you think of relocating to the capital of the UAE and buy a home for your family, there are lots of things you have to keep in mind. With a neverending stream of new real estate projects in Dubai, there is ample opportunity to find the property that you are looking for.
Why are people interested in new residential projects in Dubai?
Every year an increasing number of people move to Dubai, making it one of the fastest-growing cities in the world. Here are some of the reasons for investing in new development projects in Dubai.
Booming real estate industry: On a global level, Dubai is one of the most popular locations to buy real estate. Formerly only known for luxury properties, these days new construction projects in the UAE are available for every budget.
Safety: Dubai has one of the lowest crime rates on the planet thanks to strict enforcement of the law and an efficient police force.
Location: Due to its central location, almost any destination in Europe, Africa, and Asia can be reached in less than 8 hours. This makes it easy for expats to make family visits and opens loads of possibilities for holidays. A trip to the Maledives, or a visit to the Indian city Of Goa, takes no more than 4 hours by plane.
Weather: For those who like the heat, Dubai is the ultimate location with an average temperature of 35 degrees Celsius and 342 days with sunshine. It is one of the reasons that waterfront communities like the Palm and Dubai Marina are in high demand.
Lifestyle and leisure options: Dubai offers an unrivaled range of leisure opportunities which include cinemas, ice rinks, theatres, sports facilities and much more. Some of these venues enjoy worldwide fame such as the Dubai Mall, the Dubai Fountains and the Dubai Opera.
What types of property are available among new developments in Dubai?
Whether you are looking for a home to live in, or a property for investment purposes, there is a wide range of different types of accommodation to choose from. Here are the most common types of real estate in Dubai.
Hotel properties: With this type of property the hotel takes care of the maintenance and the tenancy process, making it a hassle-free investment opportunity. As this is an easy way to obtain passive income, this type of accommodation is gaining in popularity on the Dubai real estate market.
Multi-storeyed properties: These properties, for example, duplex or triplex apartments, are not so common in Dubai. This type of property provides residents with the feeling of an individual house while benefiting from the amenities of a residential complex.
Studios: This type of property is popular among young professionals as they are the most cost-effective solution when entering the Dubai real estate market. Besides usually being the cheapest option, these units also provide decent rental income.
Conventional properties: There is a wide range of properties that fall into this category which can consist of 1- to 4-bedroom units. These units could be situated in a high-rise apartment building or in a low-rise unit such as a villa or a townhouse.
What are the most popular districts in Dubai for future projects?
With a city growing so fast as Dubai it might be difficult to decide in which area you want to settle down. With over 50 neighborhoods in development, there is an abundance of choice. Here are the 5 most popular areas for Dubai projects.
Business Bay: Next to Dubai Downtown but more affordable, Business Bay is a great option benefitting from its central location between Sheikh Zayed Road and Al Khail Road. The area also offers a wide range of options for dining and entertainment.
Dubai Marina: With the beach and the marina within walking distance, this area provides waterfront style living while enjoying all the amenities of the inner city. This hip and fashionable neighborhood is full of fine restaurants, an array of entertainment venues and amazing views.
Jumeirah Village Circle (JVC): This area is one of the most family-friendly areas of Dubai with an abundance of parks, schools and shopping facilities. Another great benefit of JVC is the affordability of the area.
Jumeirah Lake Towers (JLT): This waterfront community has matured after years of intense construction works. The area provides the feeling of living in a suburb while at the same time being in close proximity to all the major landmarks of Dubai such as Dubai Marina, the Dubai Mall and the Dubai Opera.
Palm Jumeriah: Resort-style living with the finest restaurants, cafes, and beaches available all over the neighborhood. The area is known as one of the most prestigious in Dubai and provides stunning views of the Dubai coastline, Dubai Marina and Burj Al Arab.
What are the costs involved with buying new and upcoming Dubai projects?
Besides the asking price, there are several things that add to the true cost of a property. Here are the main things to keep an eye on when investing in new building projects in Dubai.
Government fees: Examples include Dubai Land Department (DLD) fees, Property registration fees, Mortgage registration fees, etc.
Agency fees: Depending on the services that you require, you might have to pay for things like Real Estate Agent Fees (2% of the purchase price + 5% VAT), Conveyance fees (Approximately AED 6,000 to AED 10,000), etc.
Mortgage fees: When taking out a mortgage, you also have to make payments to the bank in the form of Bank Mortgage Arrangement Fees (1% of the loan amount + 5% VAT), Property Valuation Fees (Between AED 2,500 – AED 3,500 + 5% VAT), and others.
Initial Deposit: When you want to secure a purchase, you will have to make an Initial Deposit. This usually 10% of the whole price and can be paid by cheque. An authorized Real Estate Regulatory Agency (RERA) agent holds on to the sum until the purchase is finalized.
Service Fees: After purchasing a property, there are annual service fees that have to be paid to the DLD. These fees differ per area and are for the maintenance of common areas such as elevators, landscaping, security, swimming pools and so on.
Insurance fees: Although Home Insurance is not obligatory in Dubai, it is highly recommended and will cost you about AED 1.000 per year. What is obligatory, is life insurance when you decide to take a mortgage for your property. The cost for this is 0.4-0.8% annually from the decreasing loan balance.
10 Advantages of buying real estate in Dubai
Compared to other regions in the world, there are numerous benefits of buying real estate in Dubai.
Constantly Growing Population: from 2008-2018 86% in population.
High return on investment: Rental and property yields are higher than for comparable units in London or New York.
Tax-free rental income: Income taxes are absent in Dubai.
No annual property taxes
Strategic location: It is easy to reach Dubai from any point on the map.
Expo 2020: Will attract more than 25 million visitors that all need a place to stay.
Great weather: 342 sunny days a year.
Regulated market: Most transparent property market in the MENA region.
Safe and Secure: Crime is almost absent which improves the investment climate.
Easy Visa process: After investing in real estate, the visa process becomes easier.
Pros and Cons of purchasing real estate in Dubai
Innovative and technical advanced country.
When your visa is canceled, you cannot enter your property.
Stable political situation.
Developers sometimes fail to deliver the property and don’t give a refund.
Purchasing a property entitles you to a residency visa.
Selling your property might be a hassle.
Ministry of Happiness, aiming to provide all residents and guests with happiness.
Frequently changing laws and rules.
No possibility to become a UAE citizen.
One of the highest rental yields in the world.
Reverse property development logic.
Off-plan properties have become safer due to the use of Escrow accounts.