Dubai Migration

It lies in the Arabian Desert and is situated on the calm, blue waters of the southern Gulf. The Dubai Creek is a natural inlet from the Gulf which divides the city into the Deira district on the north and Bur Dubai on the south.

When one is investing in Dubai in a property/real estate, it is best to apply for a pre-approved mortgage. It is based on this that the banks’ would work out as to how much amount a person is eligible for and the final or actual amount that they would lend. It would also depend on the type of the property, its total cost, location and the time taken for completion of the project. If a bank or lending institution does not agree on a certain loan amount, one is free to enquire from other banks. If a property is pre-approved then it is considered final as there will be no change in the amount guaranteed and one can go in for what one needs or can afford.

Also, the loans doled out are different for expatriates who reside in Dubai and those who live elsewhere and are investing in real estate. For people who live in Dubai the mortgage amount is anywhere between 70-80%. Non-residents or foreigners are offered mortgages at 60-70% of the total loan amount. The difference should be paid as down payment. Additionally, it would depend on the property, the time taken to complete it and the lenders themselves. The lenders can change the mortgages at their own discretion as there are no conditional rules or laws.

Dubai is fast becoming an economic, business, and traveling destination. With more and more people relocating to Dubai for business, employment, and leisure, the property market is going through a boom and investment in this sector is nothing but potential revenue.
The reasons why Dubai is emerging as a good investment opportunity are:

• In Dubai, investment in any kind of real estate property be it an apartment, villa, town home, or commercial complex is still a lot cheaper than in any other advanced country be it Japan, US, UK etc. This is mostly because of lower taxes, lower currency rates and better options and plans being available.
• In Dubai, the only major deterrent factor is the house rent, which is very expensive. So investing in a property is far cheaper than renting an apartment or a house.
• With more and more banks and mortgage firms offering mortgages or loans in Dubai, there are varied options for expatriates to seek for loans. Also, with more people opting for mortgages; interest rates are also going down.
• Dubai is all set to introduce a new law where even foreigners can own properties. Moreover, one can convert the present leasehold option to freehold option in which there is more concrete and assured definiteness. And with the introduction of this option, more people will invest in Dubai’s real estate.
• With rapid growth and expansions and with the growing number of expatriates and tourists, a space crunch is also looming in the offing, with the ratio of apartments/hotels to people not adding up. In trying to meet the demand, the real estate sector is growing.
• Dubai’s international presence is also a factor for increased real estate investments. People are recognizing the city’s importance in the international scene and its stupendous growth and are investing in major real estate ventures.
• Some property developers in Dubai offer financing which ranges anywhere between 50%-90% of the total property value.

Not only are European businesses thriving, there is a growing number of European expatriate population who are relocating to Dubai and/or investing in real estate. Especially, with the newly created Palm Jumeirah Island and other massive real estate projects, a substantial population is of Europeans.

So for an investor in any area like real estate, or a business, Dubai is definitely worth investing. The real estate sector is recording a booming growth and development. With more and more expansion plans in the offing, investors are cashing in on this and investing in real estate developments that are coming up in different parts of Dubai. For good and justifiable real estate returns, Dubai is seemingly a hot favorite for people from all over the world. The key factors for Dubai turning into an investors’ paradise are the prices, location, amenities, interest rates and nil taxes.

The primary and principal banks or concerns offering mortgages and loans in Dubai are Amlak, Tamweel, HSBC, Lloyds, MashreqBank, RAKBANK, National Bank of Dubai, United National Bank, Arab Bank, Abu Dhabi Commercial Bank, Standard Chartered Bank etc. The banks offer loans for properties where construction is already underway or where it is still in the planning stage. Of course, the rates and terms differ for different banks. Also one can avail loans from their home countries for investing in real estate in Dubai if one owns property in their respective countries which is used as collateral for the loan granted.

Though there are people moving in from many other countries, the number of Europeans settling down in Dubai is increasingly evident. It is not just that Dubai is fancied as a tourist destination for a one-off visit but it is also creating a want for people to revisit or settle down permanently.
For most Europeans who are settling down in Dubai, the reasons are plentiful:

• Dubai’s tax free options are highly irresistible. For most Europeans, while comparing the tax factor to their respective home countries, where taxes are quite high, working and living in Dubai is an inviting factor.
• The weather is also a major attraction for many. With no major seasonal changes, and the weather being consistent, adapting to the same is quite easy.
• There are a variety of dining spots catering to cuisines from all over the world and so Europeans will definitely not miss home on this front.
• Most supermarkets are well-stocked with food products from Europe and for people who relocate here, this is very helpful.
• Dubai has a very modern outlook, so there is no strict dress code.
• The shopping scene, bars, pubs and clubs are in abundance and so it is like a home away from home for Europeans.
• Europeans are allowed to swap their driving licenses for UAE licenses by paying the required fee. They don’t have to apply for fresh licenses or take new tests.

The mortgage scene in the UK is different from that of Dubai. There are different types and they are as follows:

1. Self Certification Mortgages: Also known as ‘self cert’ mortgages. Mortgage lenders determine the wages or salaries of the person to determine this type of mortgage.
2. The Right to Buy Scheme: This scheme is a policy that gives tenants of council housing the right to buy the house they are residing in.
3. Shared ownership: Described as, ‘a partnership created in the ownership of a house.’ This ownership mortgage allows the borrower and the mortgage lender to jointly purchase a property.

But in Dubai it works quite differently. First of all properties can be owned as freehold or leasehold only. If the royal family were to give an exception to a person, then they can own the property wholly.

Also lenders do not lend for every project i.e. built. Buildings are sold normally after they are fully built not because they are unworthy or faulty but because that is the norm. However, in contrast, mortgages are often given for properties which are still in planning stages and this is something that does not exist anywhere abroad. The repayment structure is quite encouraging in Dubai.

The properties here are definitely lot lesser than when compared on an international level. This is also because the land prices and values here are deemed cheaper when compared to its western counterparts. So as a result, expatriates or foreigners can afford to invest in high-end properties by paying lower costs.