How to obtain Three Years Residency Visa on Dubai Property ?
Dubai is a leading international hub for trade and tourism. With its world-class connectivity and infrastructure, the city is the gateway to growth markets, filling the time-zone gap between leading financial centers of the West and East. It is also a stable destination of choice for people within a five hour flight radius, offering a lifestyle that is globally recognized and attracts organizations and talent from all over the world. Moreover, now is a good time to invest in residential property in Dubai with Expo 2020 event starting in few days.
The United Arab Emirates was named among the 10 safest countries during the pandemic. The assessment includes quarantine efficiency, monitoring and detection, government efficiency of risk management, health readiness, resilience and emergency preparedness.
Dubai is at the moment generating an unlevered net yield of 5% per annum. Based on public records, Dubai Land Department (DLD) says 8,749 new investors entered the market during January to April 2021.
DLD added that it is expected that the real estate sector will witness "increased growth and a greater recovery in the coming period", partly driven by the Expo 2020, which opens in October.
A real estate investor who owns a property equal valued at AED 750,000 ( fully paid or if mortgaged of higher value, AED 750,000 must be fully paid)or more at the time of purchase is eligible to apply for a three-year renewable residency visa as per the Title Deed.
A title deed is an official document registered with the real estate regulator validating the owner(s) of a property.
The owner and its family members will be eligible for the visa.Once must note that the Real Estate Regulatory Authority in Dubai (RERA) does not allow more than 4 investors on a property’s title deed based on our internal research.
Additional Costs when buying a Property in Dubai.
Purchasing investment property in Dubai for example requires paying transfer fees, registration fees, and some additional charges like valuation and KYC charges.
Understanding Returns on Investment Property
The gross yield is the percentage return a certain investment (property) generates before deducting all expenses such as maintenance and management.For example if a property is priced at AED 1,000,000 and rented for AED 100,000 per year, that property generates a gross income of AED 100,000 and a gross yield of 10%.
The net yield of an investment or property, is the percentage return that investment generates after the deduction of all expenses, such as management fees and maintenance costs.For example, if a property is priced at AED 1,000,000, is rented for AED 100,000 per year, and has costs of AED 25,000 per year. The net income is this property generates is AED 75,000 and the net yield is 7.5%.
Return on Investment
Return on Investment is ratio of the price differentials of an asset at the end of a period plus all the income generated by an asset to the original price paid for that asset. In the example of a property that is purchased for price A and sold after 5 years for price B, the ROI is [B-A+all the rental income during the 5 years]/A.
The capital appreciation of a property is the growth in market value of the asset over time.
For example, if a property is acquired at a price of AED 1,000,000 and the buying costs are AED 100,000, the total investment amount is AED 1,100,000. Assuming the property is sold after a few years at a price of AED 1,500,000 (net of selling costs), the capital appreciation is AED 400,000, or 36.4% (i.e. AED 400,000 / AED 1,100,000).
To book a free consultation on Dubai Property Visa options feel free to talk to our specialist for full guidance on how to obtain such visa. Call or WhatsApp us on +971 52 375 2391 or email us.