Dubai has been a city that's known for its beauty and exotic lifestyle. And because of the fast growth, it has attracted investors globally.

The release of the foreign property ownership decree in 2002 was what led to numerous investors trooping into the city as the release allowed non-UAE citizens to own properties in Dubai.

Are you an investor? Would you like to invest in Dubai? Then this is a perfect guide to show you all you need to know before starting a real estate investment in Dubai—Real Estate Investment in Dubai is monitored by a set of laws and regulations aimed at protecting real estate investors' interests. Read on to see them.

The Dubai Land Department

The Dubai Land Department (DLD) is known for controlling the registration of sales and purchases of land. This body handles approving, organizing, and documenting transactions concerning registered land and real estate in Dubai. 

Presently, the DLD offers 26 main services and 216 sub-services to customers in the real estate sector. Adding to this development, the DLD compiles and publishes on its website all the information on real estate purchases and sales transactions on weekly and monthly bases to keep investors updated about real estate prices in Dubai.

Real Estate Registration Agency (RERA) – Regulatory Arm

In 2007, the Real Estate Regulatory Agency (RERA) was established to provide legal frameworks and mechanisms to regulate real estate development, brokerage companies, and owners' associations to create an investment-friendly environment based on international best practices that protect all stakeholders in the real estate market.

To defend market and investor interests, RERA reviews all development projects financially and technically. RERA also enforces compliance by developers, brokers, and other licensed real estate professionals and cancels blocked projects for infractions.

Real Estate Investment Management and Promotion Center -Investment Arm

The DLD's Real Estate Investment Management and Promotion Center promotes direct and long-term investments and supports local and foreign real estate investment enterprises.

It promotes environmental stability and a green economy for sustainable growth.

Immediate Residency

According to Dubai's investment-friendly visa policies, investors in residential properties worth AED 1 million or more with a maximum mortgage of 50% can obtain legal residency in the city.

Investors in jointly held properties can apply if their shares are worth at least AED 1 million. The investment must be in a single residential property. Only freehold residential properties are eligible for the visa. This visa isn't available for off-plan properties.

If the investor owns property in the country, the visa can last three to five years. The three-year visa is for AED 1 million home buyers. The five-year visa, however, requires AED 5 million for the property.

Attractive Rental Yields

With rental properties still being a popular option for those wishing to earn a regular investment, buying-to-let may be quite lucrative. Renting out a property in Dubai can generate a return on investment (ROI) of 5 percent to 6 percent for investors.

Short-term rentals, such as apartments and villas, are becoming increasingly popular among tourists searching for a "homey" and authentic vacation experience, providing investors with a great opportunity to capitalize on the city's high demand and a large influx of visitors.

Rent-to-Own Scheme (Ijarah)

A rent-to-own agreement is a contract between a builder or seller and a potential buyer that allows the buyer to start making monthly payments toward the purchase price while still building up a down payment. Since DLD introduced the rent-to-own service, a dedicated title deed register has been created to provide a transparent legal framework to support these kinds of deals, and the plan has been gaining popularity as a result.

This arrangement eases the burden of making a large initial investment into a home by eliminating the need for a down payment of at least 25%.

Developers benefit from the deal as well because they may sell to more people who otherwise wouldn't be able to afford a significant down payment.

Favorable Taxing Conditions

Dubai's taxation structure is well-known for its low tax rate charged on real estate investments, and the real estate sector is no exception. Without paying property tax or stamp charges, real estate investors in Dubai can increase their profits.

Hot Spots for Every Lifestyle

In Dubai's real estate market, the location continues to be one of the most important aspects to consider when making an investment, since it can have a significant impact on the return on investment (ROI).

When thinking about the market, there are a number of other factors to take into consideration, such as the availability of amenities, the distance from the school and the transportation options, the size, the quality, the cost of maintenance, the interest rates, and the market conditions at the time of purchase.

Safe and Desirable

Dubai is home to over 200 nationalities, and tourists and immigrant workers make up more than 80% of the city's population, making it a melting pot where everyone feels welcome to make it their second home.

Dubai is one of the safest and most tolerant cities in the world, with pleasant, peaceful neighborhoods.

Dubai is a great environment to start and expand a business due to global trust in the city, market, and economy.

Conclusion