Dubai, the city of gold, certainly needs no introduction. The real estate market of this emirate, in particular, attracts investors from across the globe due to the prospects it holds in terms of ROI.
If you are also planning to invest in this market, the chances are that you are going to come across a lot of information; some of it may be true while some can be misinformation that has resulted due to misconceptions people commonly believe about the Dubai property market.
Believing this misinformation and making a decision based on them can land you in troubled waters in the later stages. Therefore, it’s better safe than sorry. Read this post to know about some of the commonly believed misconceptions about real estate market:
1- Dubai is Tax-Free
It is commonly believed if you are living in Dubai, you do not have to pay taxes. This information was true until a few years back. However, on January 1st 2018, 5% VAT was imposed by the government. This tax applies to major transactions of goods and services.
Commercial property owners also have to pay VAT. Residential property owners, on the other hand, are not required to pay VAT. But, “housing fees” is levied on them. It amounts to 5% of the average rental value in their community.
2- It is a Risk to Invest in Off-Plan Projects
Although a popular form of investment, off-plan projects are often considered risky by many. The reason is that these projects are still under construction. If the construction is delayed or halted for some reason, investors tend to get anxious.
Not many people know that even if the project gets cancelled, investors will not have to face losses. This is because they can get their invested money refunded. Thus, the risk of losing money due to the cancellation of a project goes out of the question. Having said that, you must know that the element of risk is there in every business. And the real estate industry is no exception. Be it primary or secondary market, there is a certain level of risk involved. So, do your best to make an informed decision. If you plan to invest in an off-plan project, pick the location and the developer wisely.
For example, you can choose Stella Maris Dubai, a waterfront project located in Dubai Marina. Developed by Scope Investment, it is a 52-storey project that is due to be completed in Q2, 2022.
3- Property Market is Not Welcoming for New Investors
Dubai is known as the haven for investors and rightly so! The city of wonders doesn’t discriminate investors on the basis of their nationality and experience. Everyone’s allowed to make an investment here. Thus, the pre-conceived notion that the property market is not welcoming towards new investors is not true at all. As a matter of fact, the recent initiatives taken by the government and policies imposed were in favour of new buyers and investors. It allowed them to enter the market quite conveniently as terms of buying units were eased down.
4- You Don’t Need a Real Estate Agent to Find Property in Dubai
Whether you are an experienced investor or new entrant in the market, hiring a professional real estate agent holds great importance in your hunt for a saleable property in Dubai. Likewise, for those looking to buy property for residential property, the services of an agent are valuable.
This clearly signifies the significance of relying on real estate agents. However, since many real estate companies have their portals online, people have started to believe that they can now find every information online and the services of real estate agents are no longer required. This is a wrong impression. Real estate agents can do much more than just providing you with a list of properties available in a particular area. They can give you insights on the market conditions, apart from suggesting areas that are more suitable for making an investment.
While the internet truly has a wealth of information, it’s not a wise idea to believe everything you are reading. Always trust reliable sources for authentic information. Otherwise, you will end up believing myths and misconceptions.
We hope that we have cleared most of your misconceptions about the Dubai property market in this post.