What an expat needs to consider when choosing an area to live in Dubai

Can an expat buy an apartment in Dubai?

Yes. But only in certain areas - the emirate is divided into zones according to the permitted type of real estate ownership:

●    Freehold. A freehold zone is an area where foreigners can freely buy real estate and fully manage it. More than 60 such zones are in Dubai, and their number is growing. The freehold zones include all the city's most famous areas, including Dubai Marina, Business Bay, Palm Jumeirah, and Downtown. The owner can do whatever he wants with real estate purchased in freehold: sell, rent out, exchange, bequeath, etc. Freehold is the most common and relevant form of ownership for foreigners in Dubai; most buyers choose it.

●    Leasehold. In the leasehold zone, foreigners can rent with owner rights for up to 99 years. But there are additional restrictions. The owner can rent out or resell the property only with the permission of the primary owner, usually the developer. This form of ownership was introduced mainly to support the local population: the cost of leasehold housing is lower, as is the financial responsibility for it.

After the lease expires, the property is returned to the owner. The final purchasers of housing in leasehold zones can only be citizens of the UAE and the Gulf countries. The leasehold form of ownership has two unique varieties: usufruct and musataha.

●    Usufruct. Usufruct is the right to use someone else's property and the opportunity to receive income from it. Changes cannot be made to the property, for example, redevelopment or reconstruction.

●    Musataha. Musataha is an opportunity to own a plot of land in Dubai for 50 years, build buildings, rent it out, and make a profit. The land cannot be sold, but its structures can be sold - they belong to the person who built them.

●    Commonhold. Commonhold is joint ownership in an apartment building. Apartment owners gather in so-called condominiums to manage the common property property. They also resolve housing maintenance issues themselves.

What you need to pay attention to when choosing real estate

Having decided on the location, you can select housing to buy.

Those who like to live "on the ground" should choose among villas and cottages. As a rule, they are much more expensive than apartments. But they are often located on the coastline and in quiet gated communities. The plots, garages, swimming pools, and gardens are landscaped.

Apartments in Dubai can suit every taste: from studios to spacious apartments and duplexes with several bedrooms, loggias, and winter greenhouses - it all depends on the type of residential complex and price.

The penthouse suits those who want to live under the very clouds. Penthouses are located on the top floors of skyscrapers, equipped with elevators, panoramic windows, spacious loggias, swimming pools, and jacuzzi. Penthouses often occupy two or more floors. However, their cost is comparable to the prices of expensive villas.

Townhouses are a compromise between a cottage and an apartment. Two- or three-story houses usually have at most eight apartments. Townhouses have adjacent plots of land and are located in green areas of the city.

Developer reputation

The country's government strictly monitors construction projects, but new developers from different nations are entering the market. Therefore, before purchasing, it would be a good idea to make sure that the developer is honest:

●    Check its registration on the Dubai Land Department (DLD) website.

●    Monitor the developer's social networks and read reviews.

●    Check out the finished projects.

Price

 It is worth carefully considering your budget and assessing your financial capabilities. If you take out a mortgage, keep in mind that payments should be at most 50% of the monthly budget - otherwise, banks will refuse approval. In addition to the cost of the housing itself, it is worth considering additional transaction costs - approximately 6-9% of the property price.

 On https://axcapital.ae/ website you can find offers for off-plan housing - at the construction stage. Such a purchase will be the most profitable: the more ready the house is, the more expensive the apartments will be. But this option is more suitable for investors. More often than not, expats are looking for a home they can move into immediately or within the next few months after purchasing. Houses in Dubai are built relatively quickly, but construction will take a couple of years.

 Finished apartments in Dubai are usually sold fully furnished: finishing, furniture, and even kitchen utensils. Designer content is included in the housing price and can significantly increase its price; this should be considered when choosing an apartment.