The Sanctuary, a new residential project of high-end villas, will emerge in the Dubai district of Mohammed Bin Rashid City
The gated community of boutique villas, The Sanctuary , will be built in District 11 of Mohammed Bin Rashid City (MBR) in Dubai. The first cluster of properties available for purchase will be called The Waterside, as each of these premium homes will have direct access to the lagoon with crystal-clear waters.
The elegant 3-storey 4 to 6-bedroom villas with a contemporary minimalist design will feature floor-to-ceiling windows, gardens, private swimming pools, and recreation areas that offer breathtaking views of Downtown Dubai and the Burj Khalifa skyscraper.
Another distinctive feature of these villas will be an inner open-air courtyard inspired by the Japanese Zen Garden right in the middle of the house.
Ellington Properties, a developer that has earned an impeccable reputation in the UAE real estate market, is responsible for the construction.
Buyers of off-plan real estate in Dubai can now get Golden visas for real estate worth 2 million dirhams
Buyers of off-plan real estate in Dubai can now apply for a Golden UAE Visa if their investments amount to more than 2 million dirhams. Selected developers and real estate agents can recommend to immigration authorities that these buyers comply with investment recommendations and be granted 10-year resident status.
Developers form internal teams to communicate with the authorities and advise investors on the procedures of the Golden Visa program. Last week, the UAE confirmed that the new rules for long-term visas – 5- and 10-year-olds – will come into force on October 3, 2022. Developers expected such a decision, believing that it would immediately benefit off-plan real estate.
The most anticipated program was the 10-year Golden Visa program for property owners with such assets in the amount of 2 million dirhams. 2 million dirhams replaces the previous requirement of 10 million dirhams. The move was expected to increase demand from both buyers and investors. According to market sources, the formalization of the process for investors and developers with unscheduled purchases should be felt almost immediately.
Dubai South and District 2020 are becoming the main destination for buyers of affordable residential real estate
The South of Dubai, specifically the Dubai South and District 2020 districts, the former site of Expo-2020 event, are becoming the main destinations for consumer demand. However, we are talking more about «consumers» interested in affordable housing for their own needs, and not about investors, last but not least, the engine of such a movement is the price range of 1760-2930 dollars per square meter, which is held, not least, by the efforts of developers, In the next few weeks, several real estate projects are planned to be launched in Dubai South area: apartments with a target value of less than $ 272,000 and villas with a price of less than $ 817,000, residential real estate projects are being developed as part of the development of integrated communities with developed infrastructure and extensive green areas.
In the District 2020 area, developers are also planning a number of projects. However, one of the main characteristics of this part of the city is the infrastructure that has already been created, which until April 2022 was used as part of Expo-2020. At the moment, most of this infrastructure is planned to be put into re-operation as part of a new residential and commercial hub in the south of Dubai.
The city authorities plan to transfer Expo venue to «new rails» by October of this year
The main offer and development projects revolve around apartments and villas of fairly modest dimensions. Specifically, in the case of apartments, we are talking about objects with one or two rooms, but the key aspect of District 2020 is that this area should not become a commercial hub from scratch. This part of the city has representative offices of a large number of international companies, including Siemens Energy and DP World. Businesses, private investors, highly qualified specialists from such industries as IT are actively flocking to the district, the district offers prospects for business development and employment, which in turn attracts a large number of ordinary real estate buyers.
However, there is also an offer for wealthier buyers. So, some developers are already working on communities of hundreds of villas in configurations from three to five bedrooms, however, as already noted, developers have no plans to turn districts into another destination for super-expensive real estate and luxurious leisure life. They expect prices to rise by about 15% over the next five years, but both Dubai South and District 2020 are considered primarily as business districts for the working population. In view of this, conditions will be applied to maintain reasonable rates of price growth.
The UAE government has approved new changes to the procedure for obtaining resident visas for foreigners
The Cabinet of Ministers of the United Arab Emirates has approved changes to the existing regulations of resident programs and the issuance of visas for foreigners, largely simplifying the process and making it more transparent.
In a statement on the new legislation, it was stated: «The new system of granting resident visas aims to create an environment attractive to highly qualified foreign specialists and outstanding cultural figures. Promote the development of a competitive and flexible labor market, create a sense of stability for UAE residents and their families».
Accounting for 80% of the population of the Arab Emirates, foreigners have always been the backbone on which the local economy has been maintained and developed both in the country as a whole and in its individual emirates, especially in Dubai and Abu Dhabi.
Speaking about the specific content of the reforms, it is necessary to note the following points of the new legislation.
The scheme for issuing «golden visas» has been simplified, and the criteria for issuing and categories of recipients have been expanded. A 10-year visa will be issued to investors, entrepreneurs, prominent cultural figures, scientists and professionals of a particular economic sphere, outstanding students and graduates of educational institutions, people who have shown special heroism or philanthropy.
- The amendments will allow holders of a «golden visa» to sponsor the receipt of these by their family members;
- There are no time limits on staying outside the UAE for holders of «golden visas»;
- Investors can get a visa by buying a property worth 2 million dirhams or more (approx. from $544,500).
A visa issued for five years is called a «green visa». It can be issued to freelancers and other self-employed workers without the need to have a sponsor or employer inside the UAE.
For investors and partners, a «green visa» is issued for the organization of a commercial enterprise on the territory of the country or cooperation in the organization of such. It replaces a similar visa for investors, which was previously issued for 2 years.
Another five-year visa was also introduced, designed for outstanding cultural figures, highly qualified specialists, freelancers, investors and entrepreneurs. New types of entry visas were introduced, which do not require a host or sponsor when visiting the country for the first time. All entry visas now allow you to visit the country both once and several times within 60 days. They can be updated on a one-time basis for the same period.
A special entry visa has been introduced for applicants. It does not require a host and sponsor and is issued to those who are going to find work in the UAE, if they are:
- Qualified employees of the first-third category according to the assessment of the Ministry of Human Resources and Emiratisation;
- Have a bachelor’s degree or its equivalent.
The other entry visa is for business. «Business Entry Visa» also does not require a sponsor or a host party and should encourage private investors and entrepreneurs wishing to visit the country to personally explore the available investment and business opportunities.
Changes have also been made for the tourist visa. A five-year tourist visa allows you to visit the country repeatedly during the specified period, does not require a sponsor from the UAE and the key requirement is the presence of $4,000 or its equivalent in another currency in a bank account.
A new unified platform for issuing construction permits has been announced in Dubai
In an effort to achieve its ambitious goal of making Dubai the smartest city in the world, the city Municipality has launched a single electronic platform for obtaining construction permits.
The program provides comprehensive services, including the issuance of construction permits from all licensing authorities to consulting offices and contracting companies.
The unification process was completed by the Dubai Building Permit Development Committee, which was formed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. In order to increase the level of customer satisfaction, the committee was instructed to accelerate the completion of services by developing systems and requirements. It is headed by the Director General of the Design and Planning Sector of the Dubai Municipality, and representatives of government agencies participate in the licensing process.
Over the past year, the Dubai Municipality Construction Department has conducted more than 50,000 transactions.
Why do more and more UAE residents prefer to buy apartments rather than rent it?
Young and middle-aged people who intend to stay in Dubai on a long-term basis are increasingly choosing to buy real estate and rent it.
Executives and analysts of the real estate industry say that this trend is mainly observed among people with high salaries in their 20s, 30s and 40s who invest to insure against inflation. As a result, recently there has been a very rapid sale of recently launched projects on the market, some of them are sold out in one day.
In March, the 300 million AED Danube Properties Pearl was sold out on the first day of its launch.
A recent study by Union Square House, a real estate brokerage, says that from 2021 to April 2022, the residences of all major developers in Dubai were completely sold out and are now being sold at a premium on the secondary market.
The explanation for why buyers prefer to invest in projects under construction lies in the fact that buyers trust Dubai. Plus, prices in the emirate are much lower than in other major cities.
Dubai real estate ignores the threat of inflation: housing transactions reached AED 61.9 billion
According to preliminary estimates of analysts, while maintaining the current pace of sales, by the end of the year the total value of real estate transactions will reach AED 61.9 billion, despite global inflation.
Knight Frank believes that the effects of global inflation on the Emirati economy and the Dubai real estate market are likely to be insignificant at the moment due to effective measures taken by the government.
According to Faisal Durrani, Partner and Head of Middle East Research at Knight Frank, «when it comes to the restraining factors of inflation in the UAE, there are plenty of reasons for cautious optimism. The government’s diversified import strategy, steps to improve food security in recent years, and the strengthening of the US dollar, which curbs import inflation, all have a huge positive impact».
Effective measures are the key to success
The most effective measure is a hidden step taken by the government, freezing the prices of 11,000 goods, including milk, bread, meat and poultry. This policy was supported by a sharp rise in crude oil prices. Ultimately, this will contribute to a sharp turn in economic growth.
In Dubai, real estate transactions reached a 13-year high in May
According to experts, the total volume of transactions in the Dubai residential property market in May overcame a 13-year high, due to wealthy individuals and investors planning business migration to the most economically successful emirate.
According to the latest report published by the international consulting company CBRE, the total volume of residential real estate transactions increased by 33% to 5,542 residential units sold in May 2022, while the total volume of transactions for the year reached 30,903, which is the most impressive figure since 2009.
The consulting company reported continued growth in sales of housing under construction (off-plan) and an increase of 55.4%, while sales in the secondary market increased by 18% in the same month.
As for the increase in the value of objects, in its report CBRE reported an increase in the average price of real estate by 10.9% for the year to May 2022. CBRE also reported an increase in prices for apartments and villas this year by 9.6%. and 19.8%.
New projects in Dubai are sold out in a matter of hours! Catch up on the benefits!
As the real estate market is rapidly recovering from the turmoil experienced, Dubai is experiencing a new milestone of economic growth thanks to new investors and end buyers coming here from abroad.
The recent event with the project of a well-known Dubai developer testifies to the increased activity of buyers. More than 200 units of Shams townhouses from the UAE developer Nshama, located on the Town Square, were snapped up by investors and end buyers within a few hours after its launch.
A new boom in the real estate market
Dubai real estate is undergoing an active recovery after the pandemic. Foreign entrepreneurs, in turn, tend to the city in search of a safe haven for their savings.
According to the latest data published by the Dubai Land Department (DLD), 6,651 real estate purchase and sale transactions totaling 18.3 billion dirhams were made in May 2022 – a record May figure in terms of the volume and value of real estate sales over the past 13 years. This means an increase in sales volume by 51.5% year-on-year and an increase in the cost of sales by 65.4% compared to May 2021.
In addition, high demand comes from new buyers of real estate who seek to get a «Golden Visa».
Land plots are gaining popularity! Reasons for the growing demand for land in Dubai
According to experts, people want more freedom in choosing their own designs and materials, so they are increasingly paying attention to land plots.
As real estate prices have reached new highs, more and more people prefer to buy plots and build their own custom-made homes, rather than buying ready-made houses from developers. A weighty argument, among other things, is the desire to make your own home individual.
As the real estate market is booming, the prices of plots have also increased, but not at the same level as the finished properties. More and more people prefer to build their own house, because it gives them much more freedom in terms of implementing their own ideas and concepts.
Earlier, the Islamic Bank of Abu Dhabi (ADIB) announced the launch of its first-ever land financing offer, which will allow customers to purchase a plot of land as an investment or build a house.
According to Lewis Allsopp, CEO of real estate company Allsopp & Allsopp, «Having the opportunity to buy a plot of land using financial means gives buyers the opportunity to build their dream home from scratch». According to the expert, the cost of building a house may also be cheaper than buying it.
Who buys land plots?
Land buyers are divided into three main categories:
- investors who want to buy a plot of land and sell it when the price rises;
- contractors who buy plots, build real estate on them and sell it;
- an end user who buys a plot to build a house.
Those who intend to buy land and build a custom-made house should follow the recommendations of the developers from whom they are buying. They must also obtain architectural designs and drawings approved by the developer and the land department before proceeding with construction.
There are several advantages of buying a plot for building a house, rather than buying a ready-made option. The most obvious reason is that you end up with a home adapted to your family and needs. In addition, it will be more expensive to make changes to the finished property than to initially introduce them into the concept of the future house.
Where can you buy a land plot in Dubai?
The plots available for purchase are located in: JVC, Al Furjan, Nad al sheba Gardens, Sobha Hartland, District 1, Jebhael Ali Hills, Business Bay, Marina , Abu Dhabi.
Average land area: 464 – 929 m2.
Average cost of the plot: from 1.5 million AED (408,383$; 2,711,668¥) the building is worth AED 2.5 million (680,639$; 4,519,447¥).
What real estate can you buy in the UAE after selling your housing in Europe
What type of real estate to purchase in the UAE after selling a property in Spain
Recently, foreign nationals have increasingly sold property in their homeland and moved to the United Arab Emirates – according to a report by Global Realty Partners, 20% of buyers of all types of Arab properties, including commercial, are CIS citizens and Europeans. Prices should be carefully considered before selling property. In this article, we compare what housing can be bought in the UAE compared to housing in other countries at the same price.
Contents
- Price criteria
- Which city in the UAE should one consider moving to:
- Our assistance in choosing and purchasing real estate in Dubai!
Price criteria
Let’s consider what factors influence real estate prices in European countries. These are the criteria:
- The location and its proximity to the city center;
- View from the apartment windows;
- Well-developed infrastructure;
- The property’s condition;
- Age of the house;
- The property area.
Now let’s look at each of them in more detail.
If you look at any city in Europe, whether capital or a small provincial town, the key criterion is the proximity of the apartment to the center of the city. The closer to the center the apartment is, the more expensive it is.
The next factor that affects the price is the view. If the property is located in or near a coastal area, the sea view will be as key factor. If the property is located in or near a historical city, these old-fashioned sites will hold more appeal and importance. If the property is located in a modern city, a beautiful architectural view greatly increases the price.
Another factor that influences a property’s price is how well-developed the infrastructure is. The proximity of places such as kindergartens, schools, shops, public transport, underground, and parks – the closer these facilities and entertainment are to your property, the more expensive it will be.
It is necessary to take into account the property’s condition and whether the apartment has been repaired or not. An apartment that is in good repair will be expensive.
However, there are other alternatives that one can consider when the repair is outdated, the view is boring, and there are no shops nearby. Perhaps, the apartment is located close to a historical site. In this case, the price will be high.
Don’t forget about new development projects. Quite often, apartments in new development projects are more expensive than secondary real estate in the same area.
Another important factor is the property area.
This list of criteria partially coincides with the list of criteria in the UAE. For example, the property’s condition, repair, and area are factors that increase or decrease the value of real estate. However, there are exceptions; the proximity to the central part of Dubai does not greatly affect the price as the city does not have a center, and each community is built with a specific district center, social environment, entertainment infrastructure, and shopping galleries.
Also, the cost does not depend on the age of the house; some places of worship built 10 years ago may cost more than new ones. The cost of housing in the UAE can be influenced by the criterion of how private this property is; housing in club villages will cost more than in open-type neighborhoods.
If we compare real estate prices from different countries, of course, an apartment in the capital or in another large well-developed city will cost more than one in a provincial town or suburb. This is why we are going to draw a comparison in price — we will identify 4 large price ranges and look for successful price comparisons in the Arab real estate market.
Which city in the UAE should one consider moving to:
When foreigners move to the UAE, they choose one of these cities:
- Abu Dhabi is the capital of the UAE, a fashionable and high-tech city created for a comfortable life;
- Sharjah is the cultural “mecca” of the UAE, suitable for family holidays or family travel;
- Dubai is the most popular resort in the UAE with numerous property offers of free ownership for foreigners.
Often, people around the world choose to move to Dubai because It’s a modern and innovative city. It’s quite easy to obtain a residency permit in the United Arab Emirates, especially if you have sufficient financial resources. One way of obtaining a residency permit is to purchase a property that’s worth at least AED 750,000. It should be noted that Dubai is a freehold zone.
EUR 46,432 – EUR 69,648
For this amount, in any major city of Spain you can purchase:
- A studio apartment in a new development project of 29 sq. m.;
- 1-bedroom apartment on the secondary market of 52 sq. m.;
- 3-bedroom apartment on the secondary market of 54 sq. m.;
- 1-bedroom apartment in a new development project of 46-59 sq. m.
- For this same amount of money, you can purchase the following real estate options in Dubai.
- A studio apartment of 45 sq. m. which is located in one of the new residential areas and has good infrastructure. An example can be found in Jumeirah Village Circle.
- Another real estate option is located in the Dubai Lifestyle center; it is a full-fledged studio apartment of 35 sq. m. This residential area is a chic development project with beautiful Tuscan-style inspired architecture that perfectly expresses the concept of a beautiful life in Dubai.
- A 43-square-metre apartment in the suburbs of Akoya Oxygen combines the advantages of the city and the private life of the country.
EUR 104,472 – EUR 150,904
In Spain, this type of budget allows one to purchase a 2 or 3-bedroom apartment of 73-117 sq. m. However, this does depend on the location of the new residential project. If it’s closer to the city center, then the property is worth less and vice versa. Moreover, these residential development projects are all about comfort and class and usually come with well-equipped playgrounds and sports grounds, including a parking area.
In Dubai, for this amount, you can choose real estate in various residential complexes. Basically, these are 2-bedroom apartments with an area of 70-100 sq. m. depending on the location in Dubai:
- In Dubai Production City), you can buy an apartment of 90 square meters with 2 bedrooms;
- In areas such as Jumeirah Lake Towers, Dubailand, Town Square, or Dubai Sport City, you can find an apartment with a total area of 78 sq. m.;
- In one of the most prestigious districts of Dubai Marina near the beach, a buyer can purchase a 1-bedroom apartment of 65-75 sq. m.
EUR 174,120 – EUR 290,200
Let’s have a look at what the real estate market of the United Arab Emirates, or rather, Dubai, has to offer:
- A spacious 3-bedroom apartment of 124 sq. m. will cost almost about EUR 255,376.
- An apartment with the same space and 2 bedrooms will cost about EUR 266,984 in Downtown Dubai.
- In Dubai Hills Estate, luxury 2-bedroom apartments with a Persian Gulf view costs EUR 243,768.
- In Dubai World Central, a 3-bedroom apartment of 134 sq. m. will cost about EUR 278,592.
- In the industrial area of Jebel Ali, you can easily find a 3-bedroom apartment of 136 sq. m. for EUR 208,944. This location is convenient for those who work close to the community.
- In the Silicon Valley of Dubai (Dubai Silicon Oasis), a 3-bedroom property of 153 sq. m. can sell for EUR 278,592. The homeowner assures us that the apartment has a balcony and a fully equipped kitchen. The residents also have access to a spa, a gym, a swimming pool, etc.
What to do if you’ve got an unlimited budget
If you live in Spain and have EUR 580,040, you can purchase a huge spacious apartment in either a luxury new development project or a real palace. What about in the UAE?
In Dubai, the real estate market offers a huge variety of luxury houses and villas with between four to seven bedrooms, several bathrooms, an office, as well as, a fully equipped kitchen. For instance, a villa in the elite residential community of the Arabian Ranches with 4 bedrooms and a property of 300 sq. m. can easily sell for almost EUR 928,640. Here, one can find all the convenient infrastructure, facilities and entertainment.
Our assistance in choosing and purchasing real estate in Dubai!
Are you thinking of changing your life and moving to another country? Have you dreamed of purchasing real estate in Dubai for a long time but are afraid that it won’t work out? Have you been thinking about a villa or a house by the sea for many years but still do not dare to buy? We are here to dispel all your doubts and help you choose and purchase any property in the United Arab Emirates.
If you are interested in the opportunity to make money on investments property in Dubai, please contact us.
Buying a property in Dubai. How jointly owned hotel is maintained?
Since September 2019, the UAE has amended its legislation regarding the activities of companies whose functions include the management of jointly owned properties. It concerns developers and hotel operators and regulates the management of a wide range of properties.
Contents
- Who is affected by the amendments?
- Changes in the legal framework
- Innovative solutions to management and ownership
- New opportunities with jointly owned property
- Help in home hunting and purchase in the UAE
Who is affected by the amendments?
The amendments affect large construction projects (Master projects) which are present in most communities in Dubai and Abu Dhabi and traditionally in demand as investment properties. These are not only hotels but also residential complexes, office buildings, cottage villages, where joint property ownership is allowed. The owner can own a separate building element (a studio or apartment), while acting as a stakeholder in common areas: swimming pools, park areas, playgrounds, internal common areas.
Changes in the legal framework
Under the new law, Owners’ Association is no longer responsible for the management of the common areas within the joint property. Instead, licensed management companies regulated by RERA will replace them in the rights and obligations. If they cannot fulfill their obligations, the owners can file a complaint against the management company. The regulator notifies the company and requires clarification and elimination of the reasons for the complaint. Failure to respond will cause penalties. With repeated violations, the license can be revoked.
Important aspects of the new law
The law ensures:
- Strict control over the budget rate allocated for the maintenance of jointly owned property. It cannot be changed, as the need for spending must be confirmed by an independent auditor. The rate will not be approved by the regulator without verification of expenses and justification for an increase.
- Appointment of management companies. In Dubai, management companies are assigned a property to oversee, depending on a category it belongs to. Joint properties now fall into three classifications: major projects, hotel projects, and real estate projects other than the first and second categories.
The last category is the most common, since it includes residential apartment buildings and shopping centers. Management companies are no longer appointed by the decision of the owners’ meeting. Now RERA appoints a facility management firm to oversee common areas of the jointly owned real estate project based on a tender result. In case of unfair provision of services, the company can be replaced by another one.
Since September 2019, the UAE has amended its legislation regarding the activities of companies whose functions include the management of jointly owned properties. It concerns developers and hotel operators and regulates the management of a wide range of properties.
Contents
- Who is affected by the amendments?
- Changes in the legal framework
- Innovative solutions to management and ownership
- New opportunities with jointly owned property
- Help in home hunting and purchase in the UAE
Who is affected by the amendments?
The amendments affect large construction projects (Master projects) which are present in most communities in Dubai and Abu Dhabi and traditionally in demand as investment properties. These are not only hotels but also residential complexes, office buildings, cottage villages, where joint property ownership is allowed. The owner can own a separate building element (a studio or apartment), while acting as a stakeholder in common areas: swimming pools, park areas, playgrounds, internal common areas.
Changes in the legal framework
Under the new law, Owners’ Association is no longer responsible for the management of the common areas within the joint property. Instead, licensed management companies regulated by RERA will replace them in the rights and obligations. If they cannot fulfill their obligations, the owners can file a complaint against the management company. The regulator notifies the company and requires clarification and elimination of the reasons for the complaint. Failure to respond will cause penalties. With repeated violations, the license can be revoked.
Important aspects of the new law
The law ensures:
- Strict control over the budget rate allocated for the maintenance of jointly owned property. It cannot be changed, as the need for spending must be confirmed by an independent auditor. The rate will not be approved by the regulator without verification of expenses and justification for an increase.
- Appointment of management companies. In Dubai, management companies are assigned a property to oversee, depending on a category it belongs to. Joint properties now fall into three classifications: major projects, hotel projects, and real estate projects other than the first and second categories.
The last category is the most common, since it includes residential apartment buildings and shopping centers. Management companies are no longer appointed by the decision of the owners’ meeting. Now RERA appoints a facility management firm to oversee common areas of the jointly owned real estate project based on a tender result. In case of unfair provision of services, the company can be replaced by another one.
Innovative solutions to management and ownership
These measures are designed to improve and simplify the management of jointly owned property, depending on the real estate market conditions.
According to Sultan Butti bin Mejren, Director-General of DLD, the joint ownership initiative is fully supported by the authority. The first stage was the change in legislation, and the second was the implementation of an initiative to separate documents confirming the right of joint hotel ownership.
This is expected to attract investors with a limited budget and bolster the real estate market. Not every expat can afford to invest in an entire hotel. With the new legislation, several people can own a single property unit, with each owner having a title deed. The law provides for not only ownership but also the disposal of real estate. Each unit can be sold, pledged, or transferred into the possession of other parties.
New opportunities with jointly owned property
It opens the following possibilities:
- You may use mortgage lending for property purchase.
- Sale or re-registration to relatives is allowed.
- The right of inheritance is not limited.
More properties allowed for sale to expats are expected to boost overall home sales. Considering that Dubai is one of the most popular tourist destinations, the new law would make the hotel industry more competitive.
How it works
This scheme has been working successfully for a long time in developed countries. It is simple:
- A person purchases as many apartments as they can afford.
- Once or several times a year, the owner comes to stay in their apartment for the period negotiated contractually.
- All the rest of the year, the owner’s property is overseen by the management firm.
The profit is divided depending on the agreement and can be as much as 50% to 50%, or 70% to 30%, with the buyer receiving smaller percentage. But even this approach is beneficial. This is passive income in its purest form, without the need to come to the country or resolve organizational issues.
The only expenses incurred by the owner relate to regular repairs. On average, the annual return on investment can be from 3% to 6%, depending on a hotel and its popularity.
Expectations
The idea still needs to be widely implemented in Dubai, although it mostly concerns apartments so far, not large units. The law is aimed to reduce the financial burden and prompt the inflow of investments into the country’s economy. Primarily intended to spur investments in luxury real estate, the initiative will make it more affordable. As a result, joint ownership is secured at the governmental level and allows you to get a net profit with limited investments.
Help in home hunting and purchase in the UAE
Focused on meeting your residential and commercial real estate needs, we have long experience and extensive listings from investors and local property agencies in Dubai and the UAE’s other emirates. Check out our website now for the latest, most lucrative options!
If you are interested in the opportunity to make money on investments property in Dubai, please contact us.
Dubai Metro and real estate by the Metro
If you think about the metro like rail transport in general, it can be called one of the defining features of modern civilization.
Great Britain would not have become an empire, if not for the trains, which became an icon of the era.
It is difficult to imagine modern Moscow or New York without their extensive metro and subway systems.
China would not have become a world factory without modern rail transport, thanks to which you can cross half of the country within hours.
The importance of the metro for any successful modern city was also understood by Dubai authorities, therefore not long after the intensive development of the city began in the early 00s, they made broad plans to create a modern metro system.
As a result, it strongly influenced the pace of life of the city and the development of its economy. The metro also influenced the real estate market, the distribution of properties, their popularity and prices.
In this article we talk about the Dubai metro as one of the key elements of the urban infrastructure of Dubai.
Contents
- About Dubai Metro
- Red, Green, 2020 metro lines
- What types of real estate are located near the Metro
- Conclusion
About Dubai Metro
The full-scale construction of the Dubai Metro can be counted from March 2006. Several international companies were responsible for its construction.
The 45-station project was developed by the Welsh-Hong Kong Aedas. The construction was carried out by the Dubai-based Al Ghurair Investment Group. Britain’s Serco managed the metro project, while the government’s Roads and Transportation Administration (RTA) has been controlling the construction.
The existing metro lines were built in the early 2010s but plans to continue construction are still being developed today.
Currently, 56 metro stations and three lines have been created with trains daily transporting about 350,000 people and more than 200 million people a year. Each station and platform are equipped with the latest safety technology, fast wi-fi is available everywhere, elevators have been installed, and multi-storey car parking areas have been created.
The maximum fare is about $ 2.
Thanks to its quality, accessibility and location, the Dubai Metro is popular with all the population, even the wealthiest residents feel comfortable and save a lot of time by travelling between the resort and business districts of the city by metro.
Red, Green, 2020 metro lines
At the moment the construction of three metro lines is completely finished: Red, Green and Route 2020. In addition, there are a few more mini lines or tram routes (for example, in Palm Jumeirah).
Red line
Red line is the longest line and has 29 stations. The line runs from the industrial area of Jebel Ali, through Downtown Dubai to the centre of Deira.
Green line
This is the second line of the Dubai Metro. It is much shorter than the Red one and concentrated in the central areas of the city: Dubai Creek, Downtown Dubai, Deira. The line features 20 stations.
Route 2020
It is the smallest and youngest route.
At the moment it has officially become part of the Red Line, now the terminal point of this route is the Expo 2020 terminal, northeast of the exhibition centre. Further south there is Al Maktoum International Airport. The end points of Route 2020 are Jabal Ali and Expo 2020. There are 7 stations in total on the line.
Districts
Let’s list the districts of Dubai, through which the metro lines pass.
There are a total of 14 districts in Dubai, and the Metro goes through:
- Red line: Jebel Ali, Hadaeq Mohammed Bin Rashid, Zabeel, partially Ras Al Khor, Bur Dubai, Deira.
Jebel Ali includes the commercial and industrial neighborhoods. They are followed by Dubai Internet City, a free trade zone. HMBR and Zabeel are home to the famous Barsha Heights (residential area), Business Bay (commercial area), Downtown Dubai and Burj Khalifa (city centre). Also, the line runs through DIFC (another free trade zone) and further to Deira with many different neighbourhoods.
- Green line: Ras Al Khor (Dubai Creek), Bur Dubai, Deira.
- Route 2020: Jebel Ali (industrial districts Jebel Ali and Investment Park).
We’ll look at the districts in more detail in the next paragraph.
What types of real estate are located near the metro
Due primarily to the economic reasons for the metro, most of the real estate concentrated near the metro stations is a variety of apartments – housing for the working population, business representatives as well as tourists.
However, there are some villas in the nearby residential communities, especially in the southern and south-western areas of the city.
Villas and townhouses
A wide range of villas can be found along Route 2020, in the areas of Al Furjan, The Gardens, Jumeirah Golf Estates, partly in Dubai Investment Park as well as in Jebel Ali Village.
- Al Furjan is a neighbourhood with a mix of villas and apartments. Villas are mainly available with three to six bedrooms.
- The Gardens offers a wide range of Mediterranean style villas and townhouses. It features about 300 units. Villas offer three and four bedrooms.
- Jumeirah Golf Estates consists of luxury villas and premium townhouses. More than 600 units are located in 16 clusters. There are five lakes, several large green spaces, as well as 16 golf courses. Properties offer from two to six bedrooms.
- Dubai Investment Park offers seven eco-communities, which include villas, townhouses mixed with apartments. Villas and townhouses offer only four bedrooms.
- Jebel Ali Village is an area of villas with about 290 properties ranging from two to six bedrooms. This is an old residential area with luxury properties.
Prices for villas in these areas range from $ 1,800 to over $ 3,000 per square meter.
The most expensive area is Jumeirah Golf Estate with an average price of $ 3,146, followed by Al Furjan with $ 2,352 per sq meter.
The most affordable prices in Dubai Investment Park are about $ 1,892 per sq meter.
Apartments
In the rest of the districts close to the metro stations the most popular options are apartments.
As for the most popular locations, they include:
- Downtown Dubai and Burj Khalifa;
- Business Bay;
- Barsha Heights;
- Dubai Creek and Dubai Creek Harbour;
- Dubai Internet City;
- Emirates Towers;
- Jumeirah Lake Towers;
- Dubai Marina.
The last two districts are not directly connected to the Red line, but are in close proximity, connected by a tram road.
The range of properties in the above districts is so wide that you will find options for all tastes and budgets.
The most luxurious options are located in the last three districts. These areas are designed for attracting holidaymakers, wealthy tourists and expats. In these areas, there are many holiday homes and premium apartments and penthouses.
Barsha Heights, Dubai Internet City, Dubai Creek (and Harbour) offer more affordable apartments for both sale and rent.
Internet City is a commercial area, the same as Investment Park, therefore it is popular among businesspeople, who value comfortable and affordable housing, not luxury and status.
Barsha Heights and Dubai Creek are family-friendly residential areas. The apartments are designed for middle and upper middle-income residents.
Business Bay and Downtown Dubai are in the heart of the city.
Business Bay is, on the one hand, a large commercial hub, on the other hand, an accessible residential area for foreign professionals, for example from the IT sector, and business representatives. In this area you can find all types of options – cheap, expensive, large apartments and studios, penthouses and even duplex penthouses.
However, housing options in this neighbourhood are pricier than in other parts of the city.
Downtown Dubai and the Burj Khalifa, is one of the most expensive areas in Dubai.
Since apartments in the above areas are more popular among property investors who rent them out, here we offer the average rent rates:
- Downtown Dubai – $ 26,800 per month;
- Dubai Marina – $ 24,500 per month;
- Business Bay – about $ 23,700 per month;
- Dubai Creek Harbour – about $ 21,300 per month;
- Dubai Investment Park – about $ 21,200 per month;
- Jumeirah Lake Towers – about $ 19,400 per month;
- Emirates Towers – about $ 18,100 per month;
- Barsha Heights – about $ 17,000 per month.
Conclusion
The areas listed above were chosen purpose.
The highly anticipated World Expo 2020 in Dubai kicked off on October 1, 2021.
Analytics and forecasts for this event were formed throughout 2021 and these areas are considered as the main ones that will be visited by tourists, business people, investors and other visitors.
The southern districts are popular thanks to their proximity to the Expo, others are sought after thanks to many other attractions and popular venues.
Especially when it comes to Dubai Marina, Downtown Dubai and Business Bay, where a square meter costs $3,000, $1,800 and $1,500 respectively.
If you are interested in the opportunity to make money on investments property in Dubai, please contact us.