The idea of a vacation home seems amazing, especially if it is in a city like Dubai. If you are a foreigner who frequently visits the Emirates for business and leisure, it makes sense to invest in real estate there.
Dubai is one of the leading metropolitan cities in the world and has opened its gates for tourists to buy vacation homes in Dubai. Apart from saving the hotel cost and living with convenience, there are several reasons why owning a vacation home in Dubai is a great idea.
In this article, we would learn everything about buying a home there and what are its pros and cons. Keep reading to find out!
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Step into Dubai and you’d fall in love instantly. The place is so beautiful, full of luxury, and surrounded by great architecture that who wouldn’t want to own a vacation home in Dubai? If you are one of those and deciding whether or not investing is a good idea; here are some of the reasons that would entice you!
• Great Source of Income
Owning a home in Dubai is lucrative as you get an alternate source of income in the form of rentals. Many people visit the city every year and look for vacation rentals to spend their holiday in luxury. You can always give them your home as an Air BnB. If you buy a home at a prime spot then the income would instantly double. You can stay here when you come and put it up as a staycation for the rest of the year.
• Great Alternative for Retired Individuals
When people retire, they look to settle in peaceful cities, introduce them to new experiences, and give them the comfort they’ve been searching for. Dubai is exactly that place and more. Retired individuals can settle here as they would get great healthcare facilities, a high standard of living, and various amenities and activities retirees need. Even if you want to come and spend cosy winter months away from home then Dubai would be a nice option.
• Cost-Effective Vacation Spot
Vacation homes in Dubai are cost-effective and can be a great alternative to hotels and resorts. You can enjoy your luxury holiday instead of wondering about the cost of living. Having a vacation home also saves you money in the long run, especially if you often visit Dubai. Come to the city, stay at your place, and enjoy life to the fullest.
• Live Your Life on Your Terms
If you stay at a hotel or resort then there is time bound, too many rules, and hassle. A vacation home saves you from all trouble and gives you a sense of freedom. You can live according to your convenience and not worry about anything. So, this is your opportunity to live life on your terms, don’t let it go!
It all seems like bliss but every coin has two sides. Although we cannot deny the benefits a vacation home has to offer, there are a few drawbacks that have to be considered. This would help you make an informed decision and live your best life.
• Only Seasonal rental
Dubai is a city of varying climates. Although the tourist business is often booming, there are months when not a lot of people visit. This seasonal business of vacation proportionally affects the rental market and it generally happens between May and September.
• Rentals are affected by economic downturns
Rentals on vacation homes get easily affected by the economic downturn. When the jobs are impacted, several ex-pats leave the city and shift somewhere else. This leads to a decrease in rental property demand and thus negligible rents. So, it is not a wise idea to completely depend on rental income.
• Rules and regulations can change
The Dubai government frequently changes its rules and regulations that impact the properties and their rents. In case the government introduces new policies that increase the cost of rental properties, it can become difficult to predict future profit.
Buying a vacation home is a tedious process and requires some formalities to take care of. If you are planning to invest in real estate then here is the process you need to follow –
• View and choose the property
Dubai is a hub of properties and there are several options to select from. You can look at the Jumeirah Beach Residence, Palm Jumeirah, and Dubai Marina properties. Check out these places through a real estate agent and select the one that fulfils your requirement.
• Negotiate the price
Once you have decided on a property, you have to make an offer to the estate agent or seller. Make sure you negotiate so that it fits your budget and you don’t have to let go of your dream property.
• Sign the papers
After the price is finalized and due diligence is conducted, you have to sign the property papers. Make sure that you have a real estate lawyer with you who can ascertain that the papers you are signing are legally binding and protect your interests.
• Pay the deposit
Make the payment to the real estate agent according to the final deal. You may or may not have to pay the entire amount altogether. These conditions should be cleared before making the payment.
• Complete the purchase
You have signed the papers and paid the deposit. Now the procedure is complete and the property has to be registered with the Dubai Land Department. A registration fee has to be deposited and necessary documents have to be submitted.
Buying a vacation home is a big decision and requires you to take carefully-thought decisions. Here are the factors to keep in mind before you go ahead -
• Location
The location in Dubai matters. There are a few spots that are prime hubs for tourists whereas some where there’s not a lot of noise. If you are buying a home for vacation and rental purposes then make sure that you select a prime location.
• Appeal & Appearance
Dubai is luxury and buying an apartment that doesn’t appeal to anyone wouldn’t be the right decision. The appearance of the property matters, especially when tourists are coming to stay at your vacation home. So, before you make an offer; conduct a thorough inspection.
• Facilities
A vacation home without facilities won’t attract anyone. The kind of amenities, facilities, and support the property provides play a pivotal role in your decision. Various options in Dubai are luxurious; both in terms of architecture and amenities. Make sure you check them out!
The present property market in Dubai is on the rise and has made it easier for everyone to buy a vacation home. It would not only save you cost in the long run but also acquaint you with the best amenities in the Emirates.
It is easy for a foreigner to buy a property in Dubai. You have to contact a real estate agent in Dubai and search for the property that best serves your requirements and aspirations.
There are a few risks associated with buying a property in Dubai. They include legal issues, market volatility, and currency risks. If you are planning to buy a vacation home here then make sure you understand these risks and know how to tackle them.
There are various factors to consider while buying a vacation home in Dubai, including the amenities, location, and appeal. These factors are important as they give an outlook of how convenient life would be for you.They would also decide if the other tourists are attracted to the property and decide to stay there or not.
A few of the drawbacks to owning a vacation home in Dubai are the continuously changing rules and regulations of the government, market unpredictability, economic downturn, and seasonal rents. It is not certain that you’d get a high return on investment around the year by investing in a Dubai home.
