Of the 9.1 million population in Dubai, nearly 8 million are expats, many of whom are US residents.
The Dubai Land Department (DLD) has made investing in property for foreigners very flexible, and when coupled with payment plan trends in the Dubai real estate industry, more and more people are acquiring property there. It comes as no surprise that many of the expats who retire within the country choose to invest in real estate to secure a home for themselves and leave something for their loved ones.
How To Make The Right Property Investment Decision
Expats can now obtain either a renewable five or ten-year visa allowing them to continue living in Dubai and enjoying the luxurious lifestyles the place has to offer.
In order to qualify for the visa without sponsorship, you must have a property of a gross value of not less than AED 5 million, as well as an existing project with a minimum capital of AED 500,000.
Area Of Settlement
Dubai is well known for the returns in the investment in residential properties, owing to flexible laws and attractive architecture attracting many buyers from all over the world.
The Emirate is a top pick for retirees, offering a relatively crime-free environment that is perfect for recreation purposes. While there are many properties catered to expats, not all suit those looking to own homes for their golden years. The best places to own or rent the property for expat retirees are in freehold and leasehold areas.
Freehold areas are those in which foreigners are able to buy properties such as apartments. They are accessible in areas like Um Hurair, Al Barsha, Emirate Hills, Jebel Ali, Nad Al Shiba, and other well-known freehold areas. Leasehold areas are there because full ownership has not yet been legalised. The leases, therefore, allow the property owner to possess it for 10-99 years. Well-known leasehold areas include Deera, Discovery Garden Jumeirah and other attractive residential areas. The choice to buy or own these properties will depend on the period of settlement for the retiree.
Period of Settlement
While settlement in the UAE as a retiree, specifically in Dubai, has a time limit for expats, this, however, does not mean you cannot become a property owner, and there with it gain the many perks of home ownership including extra income. However, despite the time limits, retirees are able to a long-term visa with significant investment.
A leased property for 10-99 years ensures you have yourself a vacation home for you and your kin even after your visa expires. You can lease the property which will still be under your ownership even after you are gone from the country, as well as renting it out to your kin to use it whenever they are there.
According to a recent Knight Frank report, property prices across Dubai continue to fall, meaning that your dream retirement home could be yours, for less.
The choice to either buy or rent property in Dubai depends on the retiree’s financial capability. While renting a property is easier and more convenient for non-permanent residents, buying property can work out cheaper as there is little rent to own options in the territory.
Acquiring mortgages is another option for long term expats who want to buy home properties for themselves. Known developers are offering DLD fee waivers to attract these potential homeowners, therefore, there is a wide range of affordable choices for you. Some also offer service charge waivers for those who seek places in Dubai to invest in homes or apartment villas which come as a good option for cost reduction.
One of the biggest benefits of owning property in Dubai after retirement is the possibility of beginning a business that will provide for you and your loved ones. The malls, gold, food, beauty, and culture are just but the icing on the top.