What To Consider Before Investing in Dubai Real Estates

best real estate agency in dubai

What You Must Consider Before Investing in Dubai Real Estates

Want to invest in Dubai real estates, but feeling a bit apprehensive? You are right to proceed with caution, especially if you are a novice in this field. Investors who do not have real estate experience might get carried away and take unnecessary risks. However, when it comes to a stable and booming market such as real estate in Dubai, you have little to worry about. As long as you consider the following key factors, making the right decision will become a piece of cake. These five steps will not only help you choose the right property, but they will also set you up on the path to success as a real estate investor in Dubai.

  • Your objective behind investing in Dubai real estates

Before you start looking at potential properties, make sure you have a clear objective in mind. Most investors focus on the return on investment, be it through long-term capital gain or through an annual yield. The Dubai real estate market is versatile and flexible. It can accommodate the needs and objectives of both seasoned and novice investors. All you have to do is analyze what you want and decide your next steps accordingly. Do you want to buy a vacation home? Or, do you want to buy a luxury villa that you can rent out to make a sustainable income? Once your objective is clear, you will know where and how to invest.

  • The location can make all the difference

When it comes to real estate, location is everything! It is even more important to those who are looking for an investment opportunity in Dubai real estates. Of course, a great location means a hefty price tag, but it also means high property value, which makes it a great asset for any investor. The better the location, the higher the return on investment. However, simply choosing a popular location might not fetch you the desired outcome. The location you have chosen must also support your overall objective. What you intend to do with the property should tell you where it should be situated.

  • A clear understanding of market trends is necessary

Researching and analyzing market trends and stats is perhaps one of the most important steps that you must take care of when you are planning to dip your toes into the pool that is Dubai real estates. You need to educate yourself by reading up on investment patterns, current trends and future predictions. When you are confused about which location will fit your objective the most, this particular research will come in handy. You will also get to know about investment terms and other aspects that you may not have known before, and this knowledge will prove to be invaluable as you go forward.

  • The difference between expenditure and investment

Once you have taken care of the factors mentioned above, it is time to get your finances in order. At first, you need to look at your spending and savings patterns, and then do some math! Figuring out exactly how much you can afford to invest in a particular property can seem daunting. However, it is easy when you know a simple formula.

For example, if you are planning to invest and then put the property on rent, you will need to subtract the cost of taxes, maintenance, repairs, and insurance from the rent you are expecting. The sum you will be left with will be your profit or cash flow.

On the other hand, if you want to use the property as your home or holiday home, you will have to subtract the price of the property and your monthly expenses from your yearly income to figure out your cash flow.

The exact figure will certainly depend on your objective as well as the state of the market. However, internationally renowned markets such as Dubai real estate tends to produce a higher ROI than others, generally in the range of 6 – 8% per annum.

  • Guidance from the best real estate agent

Hiring a competent real estate agent is the final step in the preparation stage. No matter how well you have studied the market, it cannot compare to the industry experience of a professional. You need the assistance of someone who is familiar with the trends and developments in Dubai real estates. Only a reliable real estate agent can help you make the most of your investment.

With these factors in mind, you should be ready to take the plunge. Take advantage of the post-pandemic boom, and make the most of your money.

WHAT DOES IT TAKE TO BE A SUCCESSFUL REAL ESTATE AGENT in Dubai?

REAL ESTATE AGENT in Dubai

What does it take to be a successful agent/agency in the Dubai real estate market?

As of 2016, there were a total of 5,933 real estate agent in Dubai active in the market with a total of 2,285 registered offices as per DLD report. Currently on Property Finder, there are a total of 2,672 active agents and 969 active companies in the market as of September 2020. Sure, that doesn’t mean all the agents or companies in the market are on Property Finder, so let’s consider another 20% agents and companies to be operating within the real estate market. As per our best guess, there would be about 3,200 active agents and about 1,160 active companies in the market. That means for every 2.75 agents, there is one real estate company. Odd metrics, right? Well, one of the reasons for this is that anyone and everyone who thinks real estate is an easy business feels obliged to open up their own company and while some may succeed, the majority of them do end up failing.

I’d go as far as saying that perhaps from this list of active agents or companies, only about 25% are well educated about the laws and regulations of the real estate industry and performing to their true potential. Let’s not talk about the 75 percentile, let’s talk about the 25% who turn out to be successful. What does it take for them to taste success?

The job of a real estate agent in Dubai is not easy, period. I’m not saying any other job is a walk in the park, but for a real estate agent, like any other sales role, it’s all about the income they are able to generate which dictates their take-home per month. The barrier to entry for this role is very low, which results in many aspiring individuals mis-placing their perception of this role as a money-generating machine which requires limited input and knowledge. Majority of the entrants into the field don’t have basic knowledge in mathematics, contracts or legalities. While the most important aspect of this field is to understand how to deal with clients which one can only learn on the job or through the training provided by their company, clients appreciate agents who have their basic educational principles in place:

●  Understand the basic calculations of investment, rental yield, service charges, mortgage payments, gross and net income; so you can guide your clients better.

●  Understand how to draft and review contracts that your clients are signing as a lot of bad investments can be credited to weak contracts.

●  Understand the legality of transactions, how to best protect your client interests and what fail-safe procedures to implement in case something goes wrong.

These are some of the basic principles which are so vital in this field, but are so easily ignored by that 75 percentile of agents. Our basic training starts off with these elements and once the agent has gained strength in these principles, they are better prepared to be out in the field dealing with clients. Other important elements which I believe make up a successful agent include:

●  Understanding which clients to focus on and how to negotiate with them

●  Understanding how to determine ideal investment or end-user property

●  Understanding the difference in dealing with developers and secondary sellers

●  Understanding how to structure deals for your clients

●  Understanding how to best carry out viewings and property showings

●  Understanding how to best approach clients to obtain exclusive listings

Module 1:​ Mathematics
I’m going to give you simple advice, and I hope this sticks with you. If you like to keep a mile distance between you and mathematics, then stay miles away from a career in real estate. I’m not saying you need to be Einstein to excel in this field, but if you don’t have your basic math fundamentals in place, then either spend time and effort to learn, or please choose a different field. On a daily basis we have to crunch numbers to determine how is the rental yield on a property to pitch to the client, what would be their mortgage payments on the purchase, what is the ideal price per square footage they can sell their property at, how to determine the fundamentals of construction space on a plot of land. Be it the smallest leasing deal, wherein one needs to show proficiency in advising the client their closing costs; or the largest sale deal, wherein one needs to do financial feasibility for a developer on their target plot to acquire; being able to comfortably carry out your calculations goes a long-way in concluding deals successfully. How to improve on your skills to move up the ladder and carry out bigger deals, well that’s where our training comes into play.

Module 2: ​Contracts
“But it’s the lawyers job to draft and review contracts” – Those used to the Western real estate market. Well, sorry to burst your bubble, but things work differently out there. While the client may lay the burden of reviewing and drafting contracts on their lawyers, 9 out of 10 times it is us as an agency preparing and reviewing contracts for our clients. If you do not know how to work your way around contracts, or think that it’s way below your pay-grade, then bless you! Clients trust you with taking perhaps one of their most important life decisions; we all know what the most important is (quirky slide), don’t you think it is your moral responsibility to ensure they are fully protected to your best capability? Being able to spot wherein there are difficult clauses which go against your client is vital, and you will only be able to improve your skills therein benefiting the client through repetition of contract review and asking yourself “what could go wrong”? How to spot these points and aim to eradicate them to ensure your clients have a smooth transaction, well that’s where our training comes into play.

Module 3: ​Legality
When you enroll into the course to become a certified real estate agent in Dubai, one of the primary modules is legal; but the 75 percentile of agents forget this module once they step out into the real world. Legality around real estate doesn’t only mean which area can a client buy in or how are they protected from their landlords? It also covers how one should ensure a sale transaction wherein the seller has a tenant not willing to vacate and the buyer is an end-user to whom a tenanted property is not beneficial. These and various other aspects along with the ever changing and ever improving landscape of the laws surrounding real estate need to be on the tip of a successful agent. It so happens that clients prior to even transacting with an agent ask for their advice on real estate related matters and if they suspect the agent to not be aware of their subject, then would not think of ever doing business with them. Can you blame them? Would you ever get a surgery from a doctor who is not 100% aware or comfortable with knowing what equipment needs to be used to operate on you? How to better understand the changing landscape of the legalities and keep yourself updated on the critical changes which impact your clients, well that’s where our training comes into play.

Sub Module 1: ​Understanding which clients to focus on and how to negotiate with them
For new agents, the excitement when a client expresses interest is heightened based on the expectation of closing the deal. Without the right filtering mechanism, new agents generally end up spending a great amount of time and effort on clients without closing a deal; which in turn leads to them losing their motivation and thinking each deal client interaction will not yield any positive result. This thought-process can be attributed to the majority of the agents failing in the market and deciding to give up. The best way to combat this is to understand how to qualify your clients so you can focus on the clients who are serious and with whom you have a higher chance of closing deals. This qualification requires putting across questions to your clients to better understand their requirements and also assessing how to best negotiate with them and represent them in order to conclude the deal. This is what we train our agents to start with as sometimes it’s more important to say no rather than saying yes to all clients. Focus, specialisation and quality go a long way rather than concentrating on quantity.

Sub Module 2:​ Understanding how to determine ideal investment or end-user property
When dealing with buyers, one must understand what their target is, and only then can they best source deals for the client. If someone is buying to live in the property, then the locality might hold vital importance, such as proximity to school, shops, restaurants, hospital or kids play area. On the other hand, if someone is buying to invest, then the further development of the community might hold more importance, such as an upcoming metro station, the development of a new mall or planned road connectivity. End users might require the property to be vacant so it’s vital to ensure that the tenant has contractually agreed to move out whereas the investor might be keen on buying a property where the tenant is expected to continue their lease as their target is rental yield. Furthermore, there are various other aspects which need to be considered when determining the client requirements and we ensure our agents are well tuned with these.

Sub Module 3: ​Understanding the difference in dealing with developers and secondary sellers
Dealing with developers is very different as compared to dealing with individual sellers. This is a skill very important for the agents to understand. From the perspective of the sellers, an individual might be more open to negotiation since they are the sole decision makers and not answerable to anyone; whereas the developer might not be open to negotiation as they are a corporation which has its bottom line and are answerable to their shareholders. Understanding this difference is vital to know if the product to offer to your clients should be from a developer or individual. Developer properties are available to all agents in the market so the competition is fierce so we focus on training our agents how to compete within this sector; or alternatively how to accumulate more properties from individual sellers wherein only few agents might have access to the property.

Sub Module 4: ​Understanding how to structure deals for your clients which they are happy with
In an ideal scenario, the real agent in Dubai will be representing both the parties, so therein it becomes vital to ensure that both their interests are taken care of and each party gets a fair deal which they are happy and content with. This could mean managing the expectations of both the parties and realising what is important to each of them; and what they would be willing to compromise on. We train our agents to identify these patterns and be able to structure the deal accordingly to ensure both walk away happy!

Sub Module 5: ​Understanding how to best carry out viewings and property showings
The golden rule of a property viewing – never walk into a property for the very first time with your client. Your client is already seeing it for the first time, make sure that it’s not your first time too! It is your job to answer all the questions that the clients may have, and be aware of the layout of the property. Your confidence is what will rub off on the client so better be well prepared. The walk through of the property should be well structured and cover all the basics which are vital for the client. How to best plan for your viewings and successfully conclude the viewing; this is what we train our agents with.

Sub Module 6: ​Understanding how to best approach clients to obtain exclusive listings
In the real estate business, having good control over your properties is already half the job done. Like I said earlier when dealing with individual sellers or landlords; the ability to obtain listings is an important skill, and the ability to obtain exclusive listings is a big win! If the property is only with you, then all clients or agents alike will come to you to work on the property and since the client is only working with you, you are able to obtain them the best deal. What are the steps to ensure the client is willing to give you exclusive listings, well you know the answer to that..

Are you keen on learning more about the modules to become a better agent? Subscribe to our channel/page and sign-up for our class to get a one-on-one training for REAL ESTATE AGENT in Dubai.

In the training, we will also discuss a bonus module, which in itself is a skill to master – property marketing. Without the right application and procedures to market your property, you are going to be limited in your clients. Sitting in Dubai, I’m sure you want to attract clients from across the globe; this will boil down to your marketing skills, be it across social media, property portals, google or any other medium of your choice. We show our agents how to best utilise them to obtain maximum exposure.

For more information on REAL ESTATE AGENT in Dubai, you can reach out to us via email info@riseupholding.com or phone +971 4 388 7440

OUR PREDICTIONS FOR Real Estate in 2021

RiseUp holding Dubai real estate
1. Regional Ties Improvement
Real Estate In 2021 in Dubai and the world, we will notice improvements in ties within the region with countries which will bolster cross-border investments and result in further tourism and investment opportunities. This will happen due to Expo taking place in 2021 and also in anticipation of the upcoming FIFA World Cup. This will give a much-needed push to inter trade as well, which will also result in further more businesses being set up within the region, in particular due to the change in requirements for local partners in various business categories.

2. Apartments Price Growth – Real Estate 2021 

Post Covid, there has been an unexpected increase in the prices for villas and townhouses, in particular in the luxury segment. This happened due to end-users preferring to have certain amenities which are only accessible in villas or townhouses for their kids to be outdoors as opposed to being indoors in apartments. This caused a strain on the prices of apartments, and due to the prices dropping within this segment, we will notice a rebound in the apartment prices this year as investors and end users alike will realise that better deals and opportunities will lie within apartments, so they will start to slowly shift their focus there. This might also result in slight adjustment of prices within the villa and townhouse community.

3. Primary Property Price Growth

2020 was the year of the Covid, and that caused a domino effect which resulted in the feds stepping in and printing money. The Feds have injected over USD 9 Trillion into the economy, which equals 22% of the circulating USD printed in just 2020. The majority of this money has gone into the stock market which has resulted in unprecedented gains during 2020. Eventually this money will move out of the stock market and make its way to properties, in particular in the hands of institutional investors, and this will give a massive boost to all primary cosmopolitan markets across the globe.

4. Further Reduction In Rentals

The rental market will continue to see a drop within 2021, but it will not last the year. More tenants will shift their focus towards buying, due to the price reduction in apartments, and that will push the property prices up. Based on furthermore businesses opening and job opportunities, more migrations will happen within the region, and tenants from outer emirates will look at shifting to Dubai based on the rental opportunities, which will then in turn push the rental prices up. This will furthermore lure in investors who are looking at rental income-generating assets in Dubai.

5. Israel Investments

Since the normalization of ties within the two countries, we will look at a heightened level of interest from investors in Israel to enter into the UAE market. Beachfront properties in Tel Aviv start from a range of US$ 3,000 Per Sq.Ft; whereas similar luxury properties in Dubai can start from US$ 500 Per Sq.Ft, which will make it very attractive for investors from Tel Aviv as they look at beachfront assets for holiday homes or short term rentals. The overall boost will not only benefit the real estate sector, but also technology and infrastructure.

For more information on Real Estate 2021 market in Dubai, you can reach out to us via email info@riseupholding.com or phone +97143887440.

FAILURE RATES AMONG DUBAI’S ESTATE AGENTS ARE WAY TOO HIGH

What does it take to be a successful agent or agency in the Dubai real estate market?

As of 2016, there were 5,933 active agents in the market with a total of 2,285 registered offices as per a Dubai Land Department report from that time. Currently, there are 2,672 active agents and 969 companies in the market, based on September data from a private real estate portal.

That doesn’t mean all the agents or companies in the market are on that portal; so let’s consider another 20 per cent agents and companies are operating.

Aakarshan Kathuria
Aakarshan Kathuria – Managing Director (RiseUp Holding)

As per our best guesstimates, there would be about 3,200 active agents and about 1,160 active companies. That means for every 2.75 agents, there is one real estate company. Odd metrics, right?

Well, one of the reasons for this is that anyone and everyone who thinks real estate is an easy business feels obliged to open their own company. The majority do end up failing.

I would go as far as saying that perhaps from this list of active agents or companies, only about 25 per cent are aware about the regulations in the real estate industry and performing to their true potential. Let’s not talk about the 75 percentile, let’s talk about the 25 per cent who turn out to be successful.

WEAK ON BASICS

The job of a real estate agent is not easy, period. I’m not saying any other job is a walk in the park, but for an agent, like any other sales role, it’s all about the income they are able to generate that dictates their take-home.

WHAT DOES IT TAKE TO TASTE SUCCESS?

The barrier to entry for this role is low, which results in many aspiring individuals having a misplaced perception of this role as a money-generating machine that requires limited input and knowledge. A majority don’t have a basic knowledge about contracts or legalities.

While the most important aspect of this field is to understand how to deal with clients, which one can only learn on the job or through training, clients appreciate agents who have their basics in place:

● Understand the basic calculations of investment, rental yield, service charges, mortgage payments, gross and net income; so you can guide your clients better.

● Understand how to draft and review contracts that your clients are signing as a lot of bad investments can be credited to weak contracts.

● Understand the legality of transactions, how to best protect your client interests, and what fail-safe procedures to implement in case something goes wrong.

These are some of the basic principles that are so vital, but easily ignored by that 75 percentile of agents.

Source: Gulf News – Written By Aakarshan Kathuria

THE MATH BEHIND A HOME INVESTMENT

I often get asked, “I’m earning Dh20,000 per month – can I buy a property in Dubai ?”

My answer is determined on a stream of questions which is what I’m going to elaborate on. There are more factors that come into play when determining if we are able to buy a property than just our income. All these aspects are different for every individual.

For argument’s sake, let’s consider a purchase through bank financing, as most buyers are looking for a mortgage when buying ready properties. As a starting point, an income of Dh20,000 per month certainly crosses the minimum threshold to obtain a mortgage.

Generally, your monthly salary needs to be 4x higher than your monthly mortgage payments, which can further vary based on current liabilities. There are a few requirements the bank will ask to get started on the pre-approval.

● Salary Certificate

● Six-Month Salary Slip

● Six-month Bank Statement

● Loan Application Document

● ID Copies

Depending on the bank, the pre-approval validity can vary between 30-60 days and the cost from Dh500-Dh1,000. Once the pre-approval is in hand, make a point to understand how much the bank will lend and how much down payment to have in hand.

This pre-approval helps get immediate offers on distress assets that might be in the market for a short period of time. With a pre-approval, the seller gains more confidence in your ability to obtain the required finance to buy a property.

FIXING THE RATE… OR NOT

Since bank lending can go up to a maximum of 80 per cent, the buyer should have in hand 27.5 per cent of the property value to cover the down payment and all transfer-related expenses. At this point, decide if you want a fixed rate or a variable.

If the pre-approvals are sorted and based on the mortgage type, let’s start onthe fun part – property hunting.

HOMING IN

Based on a salary of Dh20,000 and not having any other liabilities, the bank will lend about 40x the monthly salary, which means Dh800,000. Since that is the maximum lending amount, let’s consider it to be 80 per cent of our target property value, therein allowing us to buy a property of up to Dh1 million.

The down payment along with closing costs would be about 27.5 per cent, which would equate to Dh275,000 out of which Dh200,000 would go towards down payment and Dh75,000 on closing expenses related to Land Department fees, the no-objection certificate, agency costs, mortgage registration, valuation and processing.

Let’s calculate what will the monthly repayments will be. Let’s consider we opted for the fixed rate mortgage for 20 years and at an interest rate of 3.5 per cent. Based on our borrowing of Dh800,000, we are looking at Dh4,640 a month, which is principal plus interest payment.

ADDING UP THE COSTS

On a two-bedroom apartment for Dh1 million, which is about 1,200 square foot with an average service charge of Dh12 per square foot. That means a monthly maintenance cost equates to Dh1,200.

Factoring in mortgage repayments as well, we are looking at expenses of Dh5,840 per month. If our purpose for buying the property is investment for rental yield, then let’s see how much income we are able to generate. Let’s consider our property to be rented out at Dh80,000, which equates to Dh6,600 per month.

After deducting monthly outgoing in terms of mortgage payments and service charges, we are still looking at a positive income of Dh760 per month. Upon completion of mortgage payments over the next 20 years, we are now sitting on a fully-paid up property generating rental yield with only the monthly service charges as outgoing.

If the purpose of purchase is to shift from being a tenant to live in our own property, then instead of paying a rent of Dh6,600 per month, we are now spending Dh5,840 per month on bank repayments and maintenance fee.

It’s a winning situation – whatever the purpose may be.

WATCH THE VIDEO VERSION OF THIS ARTICLE:

 

Source: Gulf News – Written By Aakarshan Kathuria

POST-PANDEMIC: UAE REAL ESTATE WILL OFFER QUITE A FEW CHOICES

There is only one topic on everyone’s mind right now, and no points for guessing what that is. I’m going to talk about what happens next.

I believe the first noticeable change will be in our spending habits once the world goes back to what we used to term normal. Where we used to freely spend our money — hard earned or easy — we might choose to be a bit more frugal. We have realized how critical it is to have savings and more importantly, the right investments.

In addition to savings, we will start to allocate our disposable incomes to forms of investments. Global stocks have seen a decline of 25 per cent; over 50 per cent of businesses globally have come to a standstill based on national directives, which means the ideal investments are hard assets.

There are multiple reasons as to why we should be bullish on real estate. Firstly, #StayAtHome and #WorkFromHome initiatives have taught us that a good portion of our work can actually be done over emails and video conferencing. This change in outlook on work will have a domino effect on our housing choices.

INCENTIVE TO OWN

We will choose to upgrade to bigger homes, with more open space and study rooms. This will eventually result in us choosing to own homes as opposed to renting them, as basic human tendency dictates that if we are to spend all that time, money and effort on upgrades, we would rather do it on what we own. Buyers and tenants alike have started to express interest in villas and town houses as opposed to apartment or penthouses.

Secondly, the drop in interest rates and a higher borrowing cap of 80 per cent will allow many to enter the market. If for instance we are buying a property at an interest rate of 3.5 per cent and which is generating 8.5 per cent gross income; then we are still taking home on average 5 per cent per annum. That is still far higher than in many international real estate markets.

Similarly, tenants who have 20 per cent deposits saved up could acquire their own property, wherein the mortgage payments will replace their rental payments.

INVENTORY DROP

Thirdly, we might see a reduction in inventory of short-term rentals. I see this trend changing not only because of reduced travel, but based on the comfort level of travellers. We might opt for known hotel chains, based on our expectation of hygiene standards that will be maintained by such property networks. Or else they will be held accountable for it. This will in turn put more units in the long-term rental market, which will create healthy competition for tenants and ensure landlords with the best maintained properties will fare the best.

LIQUIDITY SEARCH

Fourthly, I feel property owners might require liquidity to fund their business or perhaps other commitments, and in the instance they are unable to raise money, they might need to exit from their real estate holdings. They will need to do so in a time-bound manner, which will be prime-time for those investors sitting with funds to enter the market at attractive acquisition values.

While this might come across, as someone taking unfair advantage out of a pandemic, this has been an unsaid rule of business — one man’s loss is another man’s gain.

The UAE government has acted promptly to reduce the negative impact of Coronavirus. RERA confirmed the move to lower the cost burden on homeowners by reducing the service charges, which will give much relief to landlords. Dubai and Abu Dhabi tenants struggling to pay their rent during the pandemic are exempt from eviction as per new directives.

These gestures reflect the leadership’s humanitarian considerations at a time when people are facing never-before-seen challenges. In times like this, the UAE has proven that it looks after the interests of the entire society. This gives its investors the confidence to further bolster their contribution to the country.

WATCH THE VIDEO VERSION OF THIS ARTICLE:

 

Source: Gulf News – Written By Aakarshan Kathuria

DUBAI TO CUT PROPERTY SERVICE CHARGES THIS YEAR

 

Dubai’s property owners can look forward to paying lower service charges this year, as part of wider efforts to lower the associated costs involved in owning a home in the Emirate.

This is one of the initiatives being rolled out by Dubai Land Department in alliance with Owner Association management companies.

Also, all fines clocked up by property owners for not paying service charges in 2019 and this year are being waived, as reported by ‘Gulf News’ on Monday. Owners will also be eligible to pay off their service charges via installments.

According to Marwan bin Ghalita, CEO of RERA (Real Estate Regulatory Agency), “In these exceptional global circumstances, everyone is expected to show solidarity and cooperation to meet the call of our wise leadership to combat the global pandemic.

“JOP (Jointly Owned Property) management companies and developers seek to show the highest degree of care and understanding of the current situation and the consequences that may result from it that burden people.”

Source: Gulf News – Written by Manoj Nair

ABU DHABI & DUBAI GOVERNMENTS BLOCK TENANT EVICTIONS DURING THE PANDEMIC

 

Abu Dhabi and Dubai tenants struggling to pay their rent during the coronavirus pandemic are exempt from eviction after the government issued new directives to protect them.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of the Dubai Judicial Council, temporarily suspended all eviction judgements related to residential and commercial facilities in the emirate during March and April, according to a Wednesday statement from the Dubai Media Office.

The directive also stopped all “imprisonment judgements” linked to rental disputes. However, the ruling does not apply to abandoned homes.

“The generous gesture reflects the leadership’s humanitarian considerations at a time when people are facing challenges,” the Dubai Media Office added.

On Tuesday, Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, ordered the Abu Dhabi Judicial Department to halt all rental property eviction cases currently in process.

“The move is in line with the UAE government’s keenness to support members of society and reduce their burdens during the current situation,” said the government statement carried by state-run news agency Wam.

The UAE government is rolling out a series of measures to alleviate the financial burden on businesses and consumers as a result of the slowdown in activity caused by the Covid-19 pandemic.

Some companies in the UAE have reduced the number of days their staff work or cut salaries to help counter the effects of a halt in operations during the stay-at-home directives from the government. This can in turn affect residents’ ability to meet rental payments.

Source: The National – Written by Alice Haine

7 GREAT REASONS TO INVEST IN DUBAI

 

 

UAE’S GDP PER CAPITA

Dubai’s economy is projected to grow 3.8% in 2020 which will be higher than the global growth forecast of 3.6%.

SECURITY

According to Interpol, Dubai is a politically stable environment and a safe city for citizens, residents and visitors as it considered to be one of the safest cities in the world in terms of crimes and health.

GOOD RETURN ON INVESTMENT

While Dubai still offers one of the lowest prices in real estate it continues to offer the highest yields in the world averaging 7-8%.

STABLE CURRENCY

The UAE dirham is pegged to the globally recognized US dollar which allows the currency value to enjoy balance, growth and stability in import and export trade rates.

UAE PROPERTY VISA

Dubai offers Residence Visa on full ownership of a residential property of AED 1 million as well as issuing 5 or 10 years Golden Residency Visa. The new system enables foreigners to live, work and study in the UAE without the need of a national sponsor and with 100% ownership of the business on the UAE’s mainland.

ZERO TAX

0% tax on residential real estate investments and income with no limitation of transfers outside the UAE.

100% OWNERSHIP

The 100% business ownership policy that was announced this year will allow large businesses to accelerate growth and integrate with global markets for long term growth.

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Business Bay, Dubai, U.A.E.

P.O. Box No. 392340

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