Over the last 10 years, Dubai has become one of the most popular places for the relocation of wealthy expats, talented youth, and affluent retirees. Affordable apartment prices in Dubai with a sea view along with comfortable taxation attract people from all over the world. However, there is always a choice between enjoying your flat in the UAE or living in a rental housing unit.
In this article, we will explore the positives of both options and find out why homeownership in Dubai is still more profitable.
Rented apartments in Dubai
The booming real estate market in Dubai offers a wide range of housing options to cater to various needs and budgets. Properties for rent are presented as well. Striving for this type of housing, expats will get the following pack of advantages:
The freedom that comes with renting real estate in Dubai is one of its key benefits. You can relocate swiftly and easily by renting a property instead of worrying about the long-term commitment that comes with buying one. Depending on your demands and situation, you can decide whether to sign a longer-term contract or a short-term lease to rent a house. In such a way, you can change location, living conditions, and overall atmosphere as often as you want.
In case foreigners are not sure whether they move to Dubai for a permanent stay or just for some time, a rental apartment is a rational choice. It is more affordable and more reasonable to pay certain money regularly than one big sum at once.
For example, housing in luxurious Palm Jumeirah costs about AED 10,000 a month, in more secluded Deira – about AED 5,000, and in modern Dubai Marina – more than AED 15,000. The price changes significantly depending on the location and surrounding infrastructure.
Upkeep and fixes.
The fact that upkeep and repairs are covered by the landlord is one of the key advantages of renting a house in Dubai. You may easily get problems rectified in the property by getting in touch with the landlord or property management firm.
Living without hassles.
Living in Dubai might be hassle-free if you rent a place there. Tenant management and other property-owning-related administrative duties, like paying property taxes, are not anything you have to worry about. Your responsibility is to obey the laws and fulfill obligations.
Purchase of real estate in Dubai
Cosmopolitanism is the most significant factor that boosts the growth of the real estate market. Ownership of housing in Dubai becomes highly profitable if there is a demand for rental apartments. For foreigners with above-average earnings who cherish their time and quality of life, Dubai is among the top five most affordable cities in the world to live in. What makes it suitable for living?
- More democratic prices compared to most European capitals;
- Offices of many international companies, like Microsoft, Google, Amazon, and so on;
- English is widespread so no need to be fluent in Arabic;
- Low crime rate;
- Comfortable tax system.
Prospective expats prefer property purchase
In 2024, the real estate market in Dubai smashed multiple records, positioning the city as a global hub of stability amidst uncertain macroeconomic conditions in other regions. But this also meant higher rents for local tenants. Many questioned if they should switch from renting to buying. There is no individual solution, but it makes sense for individuals who plan to reside in Dubai for a medium- to long-term period to purchase their apartment rather than pay rent for several years.
Buying real estate in Dubai has many advantages over renting:
- Growth of capital. The population of the metropolis constantly increases and no decrease is foreseen. Therefore, investing in properties during the construction phase aims to provide a high investment return soon.
- Reduced risks. As the UAE generally offers greater economic and political stability, buyers can be confident in their investments and the overall sustainability of the market. Besides, owning your own home eliminates the worry of eviction and other standard rental issues.
- Immigration benefits. Emirati law offers foreigners the right to obtain residency based on owning real estate in the UAE.
Reasonable approach to real estate purchase in Dubai
To conclude there is a need to compare the total sale prices with the total rental prices. Include all the maintenance fees, rental payments, and other expenses and analyze the future perspective. Due to high demand, the real estate market in Dubai is facing a shortage of housing for sale – especially in key locations with established infrastructure. So, if you are looking for a profitable apartment by the sea, go to the website Emirates.Estate and make your choice. An extensive selection of homes is available in the database at affordable prices.
Foreigners have the right to purchase real estate with a mortgage if they are unable to finance the transaction entirely with their funds. Obtaining a mortgage in Dubai is less expensive than in many other well-known places. Additionally, foreigners now find it much simpler to apply for loans than they did in the past, as the Dubai government works to promote foreign investment by lowering obstacles to bank engagement.
To sum up
Buyers should evaluate their current financial status and estimate sources of income before investing in real estate in the UAE. Besides, it is important to identify a certain goal and have a plan for the next several years not to get into a debt trap.
If you own an apartment or a villa, you can rent it out to visitors or other foreign residents of the United Arab Emirates and make a great passive income. Furthermore, there won’t be any trouble purchasing an apartment because the city is always under construction. You can put money down on construction and acquire a home in a reputable community in a few years.