The article explores how Durise is benefits foreign investors.
As a foreign investor it is extremely important to understand all aspects before making an investment in Dubai real estate. These include costs which are not included in the listing and registration requirements which every investor should be familiar.
1) Transfer Fees:
For each real estate transaction investors are liable to pay a 4% transfer fees to the Dubai land department. This is usually evenly split between the buyer and the seller however on most occasions this is paid by the buyer. This should be added to the overall cost of acquisition since it can erode the forecasted profits by a decent margin.
2) Freehold Area:
Dubai real estate is divided between freehold and leasehold areas. Foreign investor in Dubai cannot buy property in the leasehold areas which include: Jumeriah, Barsha and Mirdiff.
Some of the leasehold areas offer the best and most stable returns in the city. As an investment 80% of the population of Dubai can only lease the units in these areas which offer a good demand of stable rental income.
3) Visiting Dubai :
There is usually a limit to the number of days you can stay as a foreign investor on a Dubai visit visa. This means that an investor potentially has limited time to decide which investment suits their needs. It also means the inconvenience of visa application, travel and lodging which can potentially deter many foreign investors from taking advantage of Dubai real estate.
4) Finance :
Due to a large expat population mortgage rules in the UAE are quite strict. External finance options are also limited and most investors need to arrange their equity participation. Therefore the capital requirements for investment in the real estate sector are quite large which limits the extent to which the sector can be fully utilized.
For example for many middle-class individuals in the United Kingdom, Spain remains a good spot for real estate investment or retirement homes. Dubai offers a good mix between Eastern and Western cultures yet there are few nationalities who might consider building a retirement or holiday home in the emirate primarily due to visa or capital requirements.
Durise for Foreign Investors
The issues mentioned above are just a few examples of things which a foreign investor should keep in mind. We at Durise have developed processes which cover almost all of these issues.
- Transfer fees are split evenly between the buyer and seller. Investor does not pay anything extra and a transfer fee is included in the unit price.
- Durise investors have the ability to invest in both freehold and leasehold areas in Dubai.
- Investors can browse opportunities and review the terms and conditions without visiting Dubai and from the comfort of their home.
- There are no major initial capital requirements through the Durise platform investors can mitigate risk and diversify.
How does it work?
Through Durise investors’ pool money at a minimum investment amount of $1000 with $100 increments, the process is completely automated and investors can invest in the project from anywhere in the world. Please contact us to learn more on how it works.