Dubai's business-friendly ecosystem is appealing to international investors who are not residents of the city.
Question: I am a businessman with interests in the US and UAE. I want to move funds to purchase a property worth Dh1.5 million in Dubai. I am not a resident of the UAE but visit often on business, and don’t intend to move here full-time.
Answer: Dubai’s investor-friendly environment is attractive to non-resident investors, and the city is always open to welcoming more. If you are a non-resident investor, you can buy and sell properties in Dubai.
Nevertheless, if you are considering purchasing a property in Dubai as a non-resident investor, you will need to establish a savings account with a local bank to transfer the necessary funds for the purchase. While the process is relatively straightforward, it is important to note that you must comply with the bank's requirements in accordance with the latest laws on proof of funds and anti-money laundering (AML) regulations.
Having a local bank account can streamline the process of purchasing a property in Dubai, as all the associated fees can be paid from that account. Alternatively, you can also consider buying off-plan from a reputable developer who has a project escrow account facilitated by the Land Department. Both options are reliable and secure, giving you peace of mind while investing in Dubai's dynamic property market.
Question: I bought a villa last month for Dh2 million but now want to sell. I wanted the property as a home, but I am making a profit of Dh500,000 or more if I sell now. Is flipping legal after making a few changes to the property? I have three prospective buyers lined up.
Answer: It sounds like the owner made a smart investment decision by purchasing your property at a favourable price or through an auction. Dubai’s property market is renowned for its tax-free return on investment, making it an attractive option for many people, particularly for upgraded properties.
Upgraded properties are highly sought after, as not everyone has the time or resources to undertake upgrades themselves. The process of obtaining permits from developers and the municipality for extensions or upgrades can be cumbersome and time-consuming. Therefore, upgraded properties often command a premium in the market.
Once you have paid the necessary transfer fees to the Dubai Land Department and possess all the required documentation, selling your property should not pose any issues.
- The author is Associate Director at Betterhomes.
News Source: Khaleej Times