Buy house in Dubai to invest? The temptation of Italians (and the formula to pay 30% after purchase)

Judging by theinterest manifested in Milan It would be said that there is great desire to Dubai. Real estate development projects are established in the Arab Emirates and the demand meets the offer of savers who evaluate interest in an investment. The Gabetti agency, which in Dubai has long started a branch for the Middle East where about twenty intermediaries work, has been filling for days The rooms of important Milanese hotels, from the CityLife NH Collection to the Westin Palace. Appointments in which our compatriots are attracted to the possibility of making a real estate investment in Dubai. So they discover the new projects on paper, study rendering, analyze the areas of the Emiratin capital in great growth, they also see the real estate glories of a country that is experiencing an explosive phase with hyper-vice projects on natural and artificial islands, a stone’s throw from the sea (We had written about it here already some time ago).

A hub that also attracted the Harvard and Bocconi universities

Dubai is emerging as a central hub for finance, technology and tourism in the Middle East. Has also attracted prestigious universities Like Harvard and Bocconi University that opened in the emorated offices of discussion and training. This is leading to significant increases in real estate values ​​and rents returns, creating an attractive market for investors.

Prices per square meter

Annual revaluations, according to experts, In a fork between 8 and 12%. It means that buying a house today allows within a few years to have an annuity that is not subjected to any taxation, since in Dubai there are no taxes on real estate, if not 4% of the value of the one -off operation at the time of purchase. The average price fork of new properties under construction is between 5,500 and 6 thousand euros per square meter. Buildings with all the services of an extra-luxury condominium with swimming pools, gyms, fitness areas, play areas for children and management costs quantifiable in about 3 thousand euros per year. For this reason, studios of about 45 square meters around 200 thousand euros are offered, and two -room apartments around 300 thousand euros.

The connectivity of the country: the push of Emirates

On the other hand, Dubai continues to improve its infrastructure with developments such as high -speed railways, expanded public transport and the growing international airport at the Maktoum. These progress increase real estate values ​​and improve connectivity throughout the city. But it is the tax issue that makes the difference. Without income tax or capital gains and with minimum corporate taxes, 9% of up to 750 thousand euros of revenues, investors enjoy substantial financial benefits. There are no successions, which increases its attraction. For the Emiratin economy, the brick continues to have a significant impact, equal to 30% of GDP. According to a recent S&P report, This year the Real Estate in Dubai is destined to grow between 5 and 7%. In recent years, the city has exceeded 20 million homes compared to about 3.5 million residents.

The door to the East

Positioned as an access door between East and West, the United Arab Emirates offer unparalleled global connectivity, allowing investors to access the markets of Asia, Europe and beyond. On the other hand, they are a crossroads between the east and west of the world, they welcomed many Russians fleeing western sanctions and the collapse of the Swift system from which they were excluded. And then there are programs like The Eau Golden Visa which allow investors to guarantee long -term residence for themselves and their families, promoting stability and offering access to healthcare facilities (with an expense of 1,800 euros per year on average to guarantee access to the private regime), educational and recreational worldwide.

Law certainty: there is no risk of arrears for rents

But the United Arab Emirates also boast a stable political environment, advanced infrastructures and a highly qualified workforce. These factors contribute to a safe investment climate for real estate buyers. Especially for the certainty of the law: the risk of arrears for rents is non -existent. Generally the lease fees are paid in advance and 1 year of stay are worth. If you do not do it, you enter the penalty and you risk the arrest, then buy a house and put it on income also shelters from any inconveniences of arrears of the tenant.

The stages of the transaction

What are the steps to buy a house. Here is a guide. It starts with the price agreement: negotiating and defining the price and terms of the property. We move on to the signature of the Mou: both sides sign a memorandum of understanding (Mou), usually with a 10%deposit.
We move on to the question NoC: the seller gets a certificate of non -objection (noc) from the developer. Proceed with the payment of checks for the various stages of progress. On average it is possible to pay 5% of the value of the property on a quarterly basis over three years, the average development time of buildings and related accommodation.

the transfer of ownership

We then move on to the transfer of the property: by officially recording the transfer to the Dubai Land Department (DLD), paying the required taxes (precisely 4% of the purchase price). Some legal documents are needed: buyers who require loan by mortgage must have a bank representative present to ensure that all legal documents are properly developed. You can ask for a financing up to 60% of the property valuewith a current fixed rate of about 4.5%. You have to have the remaining 40% cash.

Dilated payments after purchase

But it is possible to use an innovative formula that does not exist with us. Is called « Post Hand-Over Payment Plan », Meaning what The possibility is given to pay a part of the project (generally 30% or 40% to the maximum) after having come into possession of the property and received the keys by recognizing an addition of 5% of the value without interest. In this case, a rent can cover the payments to be made over three years from the purchase. Therefore theoretically you can finance the purchase of debt and – in part – to self -financial. The mortgage is asked and the remaining part is self-financed with the lease income for the three years following the purchase.