Dubai has emerged to be a global destination and one of the most sought-after hubs for potential investors and expatriates. However, there is a problem that arises: most of them find it cumbersome while thinking of Buying Property in Dubai. This is because the UAE Government restricts foreign expats from owning properties in some areas. However, there are certain options such as leasing for long-term, freehold ownership, and shared freehold ownership allows non-citizens of Dubai to invest in the real estate market of Dubai.
The Dubai Real Estate Market has witnessed a massive growth over the years, offering a wide array of properties to cater to the diverse needs of the individuals. However, the decision of Buying Property in Dubai or renting it demands careful consideration of multiple factors, with convenience of location and affordability being crucial aspects.
Renting a property in Dubai or Buying Property in Dubai is a debating topic for a lot of individuals. Hence, it is important to know the advantages and disadvantages if you are thinking of investing in Dubai properties.
Now, have a look at the pros and cons of renting a property in Dubai.
Pros
Renting a Property in Dubai is one of the best choices for the people planning to live a luxurious life in a perfect environment. You can search among the wide ranges of residential properties for rent in the top communities.
1. Pocket-friendly
There is no need to worry If you are low on budget! You can rent a property at a lower price. The rental fees, registration fees, Dubai Land Department (DLD) fees, and other miscellaneous charges are generally lower than Buying Property in Dubai. Another added benefit of renting is that, there is no need to worry about repair and maintenance expenses.
2. Freedom from the financial commitment
If you are one among those looking for an apartment for a short span of time, you can rent a property rather than buying one, as buying can cost you a little bit. Renting a property gives you the complete privilege from the financial commitment that is directly linked with buying. As a tenant, you only need to sign a one-year contract with a landlord and say goodbye to any purchase obligation.
3. Easy relocation
Easy relocation is one of the prime benefits of Renting a Property in Dubai. If you are a working professional or a student, you may need to relocate to the City of Gold and its top communities because of the job opportunity or other purposes related to work. You can also cancel the tenant contract and leave the home immediately if you have some specific reasons.
Cons
1. Restrictions on Customization
You can’t customize anything if you opt for a rented property. You cannot make any structural changes to the property, such as making a swimming pool or adding an extra room.
2. Increasing rents
The rental property is not an ideal decision if you are looking for long-term staying as the rental prices continue to soar high in the Dubai Real Estate.
3. Proves to be expensive in the long run
Understand renting is just like investing in a bag with big holes. After years of paying rent, you realize that all you did was just a waste of time and money.
Now, have a look at the pros and cons of buying property in Dubai.
Pros
Now, it’s time to discuss the advantages of Buying Property in Dubai. First and foremost, advantage of investing in Dubai properties is that you get a chance to get a residential visa which allows to live and work in the country for a certain point of time.
1. Long-term investment with fruitful returns
If you are looking for a long-term investment with manifold returns, then buying a home is the best decision that you can make. With the right investment in the best community, you can experience fruitful results with every passing year.
2. 100% rights
You will feel more comfortable in your own home because you can customize the interiors as per your discretion. You don’t have to deal with the landlords and seek permission regarding any customization. The ownership will be in your hands and you have the complete freedom to design your home in any way you want.
3. Immense opportunities
Owning a home in Dubai brings with a lot of opportunities resulting in higher ROI. For instance, you can rent your home for a steady income flow or convert it into a holiday home. However, for selling or buying any property, it’s always a better idea to get in touch with the best real estate professionals to help you in every step of the way.
Cons
Just before making an investment decision in the real estate market of Dubai, it’s crucial to read carefully about the local market, rules and regulations, and other points that will help investors in future to analyze the market. Once you are well aware about the advantages and disadvantages of buying an apartment in Dubai, you can make an informed decision that will help you in long run.
1. Costly fees
In addition to paying a whopping amount for buying the property, you need to pay DLD (Dubai Land Department) charges, a real estate agent’s fee, and a lot more. That’s a costly affair!
2. Additional fees
When you own a property in Dubai, you are liable to pay some additional fees such as maintenance fees, insurance fees, and mortgage fees, and others, which in turn is an added financial burden.
3. Market Instability
As the Dubai real estate market lacks stability, in might disturb the owners who Lease to Own Dubai properties or use it as a source of income. This further can decrease the rental income, especially if the market faces a downfall.
Conclusion
Renting V/S Buying –What’s your final answer?
Have you decided which type suits you the best? If yes, then the next step is to find the property that best suits your pocket and matches your lifestyle.
No matter if you are renting or Buying Property in Dubai, it is cumbersome to explore all the choices available in the wide real estate market. You can also take the help of a real estate professional who will guide you in every step of the way.
