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Real Estate in Dubai in 2022: Investing in Shares and Fractional Ownership

When you purchase apartments in Dubai you need to carefully monitor the prices, choose the most suitable residential complex and decide on the budget for renovations and maintenance costs. This article will help you navigate the market as it will give you an overview of its state at and provide new investment solutions as well as explain why is luxury real estate in Dubai so popular now.

Investment in Dubai real estate

It is far from news that the real estate market in the United Arab Emirates is booming today, driven by the country’s fantastic economic growth. Private investors from all over the world, seek to acquire residential or commercial real estate, thereby profitably investing their capital in a dynamically developing infrastructure and grandiose projects of the most modern and most promising of all eastern cities. No city in the world today advertises itself on such a large scale as Dubai. In addition, a wise foreign and domestic policy makes it possible to ensure the necessary level of security and order in the country and, as a result, a constant influx of property buyers and tourists.

The attraction of the UAE for foreign investors and tourists, in addition to the absence of an annual property tax in the country, taxes on personal income or company profits, as well as the country’s most favorable climate for recreation, is due to relatively low prices, at least in comparison with European resorts for houses and apartments.

New investment solutions

Today, experts observe a remarkable picture in the housing market – an increasing number of investors prefer to buy shares of common property, investing less of their own finances. And at the same time, such an investment strategy has a positive effect on income.

Fractional ownership of real estate is a very common phenomenon in the housing market in Dubai. During the first half of the year, specialists noted a significant increase in transactions for the purchase of shares. Developers have also picked up this trend. For example, Azizi Developments notes that every 10th property is sold in shares: it is bought by several owners at once. And at the same time, each owner has equal rights to property.

Developers also offer potential investors interesting, safe and convenient payment plans. It is worth noting that buying a shared property is a completely legal investment decision.

There are special real estate investment platforms that allow you to select and purchase a certain share. And at the same time, the minimum investment amount is only AED 500, which allows you to become an investor in overseas property with a minimum investment.

The relevance of fractional ownership of property in Dubai

Over the past few months, experts have recorded a rapid increase in demand for fractional ownership of real estate. This is due to an increase in rental income and an increase in the value of all properties. In this regard, potential investors are asking an urgent question – where to invest in order to get the maximum return on investment?

  • Many developers record the purchase of real estate by several investors: as a rule, there are about 4 owners per property. Moreover, each of them has exactly the same rights in comparison with other investors. In addition, each investor can sell exactly his share at any time.
  • Recently, specialized auctions with attractive housing lots have also become popular. The organizers claim that a third of the transactions take place as part of the distribution of shares between several owners.

Thus, fractional ownership of property in Dubai is another relevant way to increase investment.

Why is luxury real estate valued in Dubai

This question will be answered by Chris Boswell, real estate agent in the UAE. Chris Boswell is one of the most successful brokers in the UAE. Sales exceeded USD 1.15 billion, including the record for the most expensive private home sold for USD 50 million. He told Arabian Business that this year’s first quarter was “quite possibly one of the best quarters since 2007-2008” and said it has completed more than USD56 million worth of luxury goods sales since the start of the year, some of which were carried out jointly with other partners.

Chris noted that the UAE offers ideal conditions within the framework of the COVID situation. In addition, demand now exceeds supply. This means that prices are expected to rise soon.

According to an analysis based on data from the DLD, a total of 3,450 apartments and 586 villas worth AED 11.6 billion (USD 3.1 billion) were listed in the residential property market in the first quarter.

A million dollars can buy 165 square meters (1,776 square feet) of space, about five times the size of same in London or New York. The emirate has 42,356 houses worth USD 1 million, second only to the UK capital.

Boswell said: At the end of 2020, the international wealthy community realized that Dubai is a safe place to live during the COVID lockdown around the world. I feel like many immediately recognized the value of Dubai and all the amazing things the city has to offer and that prime waterfront housing has been incredibly undervalued compared to other major cities around the world. In addition, they felt safe under the auspices of outstanding leadership during an incredibly difficult and difficult time.”

We agree with Chris. The attraction of Dubai is undeniable. A serious approach to restrictive measures and a guarantee of the quality of housing are forcing more and more people to choose real estate in the city.

Boswell said the buyers are coming from Europe, the US and the Far East and currently represent “a few well-known, very high-net-worth individuals, athletes and top names in the entertainment industry” as they look to make Dubai their primary residence.

Real estate agency in Dubai

To value the market properly and effectively access it, it is wisely to use the help of the professionals. Ax Capital agency is ready to assist you to become an owner of a property in a sunny emirate and will support you on the every stage of the deal.

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