I'll buy real estate for rent, but there will be no tenant at once and the apartment will cost a long time. How will I manage and control my property?
About 4 million residents live permanently in Dubai, as well as more than 15 million tourists a year. The demand for short-term and long-term rent is very high.
Prices do not stand and go up, the cost of rent is compared to the price of the object, which is from about 7-12% of the cost per year.
For my clients, I select offers only in locations that are in demand by either tourists or residents.
Daily management of real estate is carried out by the Management Company (as a rule, this is done by the developer himself). And rental management and formalities are ready to engage in for clients or choose an agency that specializes only in rental.
How is the tenant and how is the owner of the property protected by law?
In Dubai, it is usually to draw up a small lease agreement on 2-3 pages, the standard form is approved by the Land Department. As a rule, rent for 1 year, but can be for a longer period. The conditions are usually simple, the rental amount, the security deposit, the number of payments per year, and other conditions at the request of the owner.
As a rule, the tenant either pays the entire amount in advance or writes out 2 checks, the first check is rented + deposit, the owner puts the check immediately in the bank and the second check the tenant writes out with a date after 6 months, which remains with the owner.
On the appointed day, the owner also sends the check to the bank and in case of non-payment on the check, there is a fine, then if there is no payment, he declares to the police. In Dubai, issuing a check without coverage is a fraud. In very rare cases, tenants take such actions at the risk of being in prison.
The law also establishes that in order to connect all utilities such as electricity, air conditioning and Internet, it is necessary to register a contract with the EJARI Land Department. It also protects both owners and tenants, as double registration is not possible.
I will add that unlike European countries where there is a huge policy of tolerance and where the eviction of tenants lasts for years through countless courts and executive decisions, everything in Dubai is very fast and simple.
And another coordinate difference from other countries is that rent is not taxable in the UAE. Only for commercial real estate there is 5% VAT.
The real estate market in Dubai is a huge "soap bubble" and will soon burst. Why invest there?
Dubai is among the top 5 most popular cities in the world and premium real estate is quoted at quite loyal prices. The growth potential with such an interest of investors is still very significant and not exhausted.
There are many growth drivers like security at all levels of living, the stability of the local currency Dirham has been tied to the dollar for 31 years, and Dubai's development plan 2040.
The purpose of this master plan is to make Dubai a city with the best quality of life in the world and to create many opportunities and lifestyle diversity for Dubai residents and guests and investors. Dubai's vision 2040 is based on a concept that ensures the highest quality of life and sustainable prosperity. The vision is not only to meet the needs of the people of Dubai, but also to create an environment that helps them maximize their creativity, innovative results and realize their highest potential.
Who should then sell real estate if permanent construction sites give a lot of offers and anyone can buy from the developer?
The best offers diverge at the start of sales, this is usually an event and investors, agencies and their clients are invited to it, the best lots are sold in a few hours. The price of the remaining lots is constantly and gradually growing and in a few months there is nothing to buy. Buying at the first launch you get the right to choose the best of the project and a favorable price.
When the project is commissioned, both tenants and buyers who are looking for ready-made housing immediately to stop by and live. Of course, the location is of great importance, the areas most popular are developed very quickly.
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