Apart from its iconic landmarks and an ultra-luxury lifestyle, Dubai has gained widespread recognition for its real estate market. People from across the globe prefer Dubai real estate for its lucrative opportunities.
Having said that, buyers and investors are still skeptical when it comes to investments. Numerous common misconceptions related to the Dubai real estate market lead to their doubtfulness and ambiguity.
In this post, we are going to discuss some of those misconceptions and debunk them. Continue reading!
Misconception # 1: There is no tax levied in Dubai.
Many people believe that Dubai residents do not have to pay any tax. This was true until 2017. On 1st January 2018, the government imposed 5% VAT, which applies to major transactions pertaining to goods and services. Although residential property owners do not have to pay VAT, they are required to pay “housing fees”. It is calculated at 5% of the average rental value in their locality. On the other hand, commercial property owners have to pay VAT.
Misconception # 2: Living in Dubai is very experience.
This isn’t exactly false as it depends on person to person vis-à-vis their lifestyle. However, one can control their expense and decrease their living cost. There are some neighborhoods in Dubai that house affordable living spaces. Furthermore, those who live alone can also opt for shared spaces to reduce their accommodation expense, which generally makes for a major chunk of one’s income. Therefore, living in Dubai is not as expensive if you are willing to make compromises on luxuries.
Misconception # 3: Off-plan investment is risky.
Not completely. Since off-plan projects aren’t fully developed, some people believe that making an investment in one can prove to be quite risky. The delay in the completion of these properties is cited as the major concerning cause. In Dubai, most property developers complete their projects on schedule to gain the trust and confidence of buyers/investors. So, the best thing to do, in order to minimize this risk, is to buy an off-plan property that’s developed by a reputed development company.
Having said that, it is important to note that the element of risk is always there in the real estate sector. It’s a part of this business; therefore, cannot be completely eliminated.
Misconception # 4: Overpricing your property can help to avoid underselling.
It is another common misconception, particularly among property sellers. They believe that by setting a high price for their property, they can avoid underselling it. However, by doing so, they end up missing out on a lot of prospects. There are high chances that buyers are going to put off by high rates. They may not even consider viewing your property.
Misconception # 5: Entering the property market is difficult.
In today’s time and age, it isn’t. Particularly, after the COVID-19 situation, developers are keenly welcoming new buyers. The government, too, has announced incentives for first-time buyers. All in all, provided they have the right guidance, first-time buyers can easily enter the property market.
Misconception # 6: There is no need for real estate agents
A plethora of real estate companies having online portals has given rise to this misconception that the services of real estate agents aren’t required anymore. This is something you should not believe. Of course, these platforms and portals prove to be of great help. You can view properties right from the comfort of your home and know about their details. Whether you are looking for a villa for rent or an apartment, you can find an array of options in a matter of a few seconds thanks to real estate portals. However, when it comes to finalizing the deal, you will need the services of agents. Without their expertise, it will be tough for you to make an informed decision.
To sum it up, if you are planning to enter the Dubai real estate market, make sure you have cleared all the misconceptions, concerns, and ambiguities you have in your mind. Only then you will be able to make an informed decision.