Expats residing in Dubai for the long-term often see the benefits of purchasing property here, as oppose to renting. The first half of 2016 saw over Dh35bn in just under 22,000 transactions by expats and foreign investors. Available Dubai property for sale to expats comes at no shortage as we see a continued increase in transaction numbers over time. As developers expand their property and payment options to cater to Dubai’s top property buying nations; British, Indian and Pakistani, and as rental prices keep increasing, buying a property in Dubai has never been so appealing.
Why Expats Buy Property
Expats must decide their goal when making a property purchase. Most Expats, after all, will likely not stay in the region for much longer than is necessary to complete a job or reach a certain career goal. Much of the Dubai property for sale to expats is viable as either an investment or for end-use (to live in). Though most expats tend to buy property for a combination of reasons; that is, they will reside in their property and rent it out when the time comes to leave Dubai. It is advised to determine the intention of a property purchase, before purchasing, as this will have an effect on the type of property, location and budget of your investment.
Investor Property vs. End-User Property
An expat in Dubai will have the choice to live in his/her property, or to rent it out as accommodation. When buying a property, end-user buyers will look at specific property requirements, which may not necessarily be relevant to the buying decisions of an investment buyer. Family friendly communities, near work, near schools, large garden, plot size and floor plan layout are all primary factors in the decision making process of an end-user. Investors will typically look at BUA, cost per sq. ft., payment plans, average rental yields in that area, property exposure, future development plans, etc. Knowing your property ownership goals will narrow down your options and help land you on the right property.
Off Plan Property
Regardless of property buying goals, buyers want to benefit from Dubai’s excellent returns through capital appreciation. By far, the best property purchasing option to maximize capital gains is by way of purchasing off-plan and developer properties. These properties are typically still under construction and allow the buyer to pre-purchase a home at a lower-than-market value price tag, with flexible payment schedules. The only real caveat being buyers must wait until a pre-determined handover date, before they have access to their property. Property buyers buying a home purely for investment purposes find these properties preferable as they have no immediate need to reside in the property.
Secondary Market Property
For end-users, who invest in a property for the primary purpose of habituation, may not be in a position to wait a couple of years for a property to be ready. For this reason, end-users typically seek ready properties on the secondary market (re-sold). Although ready properties come with a higher price tag, reducing the ROI potential, they’re a convenient option for those who are not interested in maximizing the profits from their property investment. That’s not to say that there is no significant profit in secondary market property; simply that the return on investment may be less.
With the great variety of Dubai property for sale to expats and foreign investors, it can be an overwhelming task to filter through the property landscape to find the perfect property for your purchasing goals. Zola Group Property Consultants can help to make this task less daunting by providing knowledgeable and experience-driven advice to property buyers in the UAE and around the world. You are welcome to Contact us at to speak with a property consultant today.
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