The UAE is known for many things. From state-of-the-art infrastructure and monuments to ample investment opportunities, all account for the country’s growing fame. Speaking of investment opportunities, the real estate sector holds paramount value in the UAE. The sector has flourished over the years making the real estate market one of the most lucrative industries in the country. However, with billions at stake and all eyes set on the sector, the market remains subject to misapprehensions. We will go through and debunk some common real estate myths in the UAE.
Real Estate Business in the UAE
The UAE is not short on investment opportunities. From starting a car rental business in Dubai or other cities of the UAE to setting a foot in the IT industry, there lies a good scope in almost all sectors. However, the real estate industry remains among the top choices for investors.
Unlike other thriving businesses, the real estate sector is not prone to rumours and misconceptions. People may frequently come across information that can influence their decision to buy or invest in the property market. It is advised to go crosscheck any such information to avoid losing a lucrative investment opportunity.
Real Estate Myths in the UAE
With misinformation spread across unauthorised platforms, people can have second thoughts about their plans. Let’s go through some common myths about real estate in the UAE and debunk them to give you a real picture of the property market.
MYTH – HUGE CAPITAL NEEDED TO INVEST IN THE REAL ESTATE MARKET
This is perhaps the biggest misconception about the real estate market in the UAE and around the world. Luckily, the UAE gives direct access to the general public for investing in real estate – debunking the misconception about the real estate market being reserved for the rich.
Moreover, people with limited capital can also opt for a property mortgage in Dubai and Abu Dhabi along with other cities in the UAE. Shares in the property market give you reasonable returns. On the other hand, buying a property on a mortgage allows you to generate capital by renting, leasing or selling the property.
MYTH – THE PROPERTY MARKET IS ALL ABOUT CAPITAL GAINS
It is another myth about the UAE real estate market. Even though the flourishing property market gives healthy returns when you sell the property, the earning opportunities aren’t limited to capital gains.
Net income remains the core consideration when investing in the real estate market. Capital is generated through leasing and renting the property and with time property value increases – giving better returns when you sell it.
MYTH – POST COVID ERA HAS DECREASED THE DEMAND FOR OFFICES
Decreased demand for office spaces in the post-COVID era is also among the common real estate myths in the UAE. The COVID era saw the transition of businesses from traditional spaces to work-from-home setups. Many people got the work from home essentials and set up their remote offices.
People also turned to online platforms for purchasing goods and services. Amidst all these transitions, even many online platforms choose to have an office space to conduct their business. Moreover, as things got back to normal, businesses started to call their staff back to the office.
Furthermore, the post-pandemic era has also increased the demand for shared office spaces and hot desks. All in all the demand for office spaces has remained intact.
MYTH – PRIME PROPERTIES ARE THE ONLY OPTION FOR BETTER RETURNS
This is also among the common UAE real estate myths that you need to know about. Many cities in the UAE have areas considered prime locations. For instance, Downtown Dubai and Dubai Marina are some of the most popular areas in Dubai.
People usually follow the home buying checklist when looking for a property and prime locations remain a big attraction. However, investment opportunities aren’t limited to prime locations.
People looking for affordable options look into other areas as well which leads to increased demand. You can attain higher returns on such properties without spending a fortune by going after prime properties.
MYTH – THE PROPERTY MARKET IS OVERSATURATED
A market as lucrative as the UAE’s property market attracts many eyeballs. As the news gets around, more and more people look to invest in the industry. However, there remains a misconception about the UAE real estate market, Dubai in particular as being oversaturated.
The UAE government takes a keen interest in keeping the property sector in full flow with projects like the Sheikh Zayed Housing Programme among many more. New projects and advancements balance the scales between the growing demand and investment opportunities.
Moreover, some areas attract more buyers – giving air to the oversaturated rumours. That said, there remain ample opportunities for buyers and investors in the UAE real estate market.
MYTH – FOREIGNERS CAN’T OWN A REAL ESTATE IN THE UAE
This is also among the common real estate myths in the UAE. It’s a misconception that foreigners or expatriates aren’t allowed to own properties in the UAE. There are designated free zones in Dubai, Abu Dhabi and other cities which allow expatriates to have full ownership of their properties.
That said, there are some obligations like the Abu Dhabi property laws for expats and other regulations set for different emirates. Expats can fulfil the requirements and claim full ownership of the properties in free zones.
These were all the common real estate myths in the UAE. The UAE property market is a flourishing industry and highly appealing to people around the globe. The additional services offered by the government such as VAT-free property transactions among many more make the property market more intriguing.
That said, authorised platforms such as dubizzle make the property-buying process a breeze. If the idea of owning a property in the UAE sounds like the right thing for you, check out the following:
Stay tuned to UAE’s top property blog for debunking more famous real estate myths.
