A Guide to Buying Property in Dubai from Russia
The appeal of Dubai among foreign investors is a testimony to the stability of its real estate market. Being one of the most developed cosmopolitan cities in the world, investing in the properties of the city is a successful formula for long-term revenue. In spite of all the benefits, many new investors still get apprehensive before investing in the properties of Dubai due to the lack of knowledge or awareness.
This is why we are bringing to you an all-inclusive guide, curated especially for Russian investors who want to capitalize on the immense potential of the city. Russians are among the leading international investors in the property market of Dubai. The stable economy of the city offers promising opportunities to Russian investors, and they have played a major role in highlighting Dubai as a global investment destination.
In this space, we are going to take a close look into the buying process of properties in Dubai by Russians. From why it makes sense to invest in the real estate market of Dubai to the best areas in the city to invest in for Russian investors, we cover it all. As an added bonus, we are also going to share some healthy tips that will help you make successful investments in the city. So, read through.
Why to Invest in Dubai?
If you are planning for long-term profitable revenue, then investing in the real estate market of Dubai is without a doubt one of the smart investment options you can make. Dubai is that metropolitan city where luxury meets endless opportunities. Let us walk you through some of the most appealing aspects of why you need to invest in Dubai’s real estate sector.
Strategic Geographical Location
Dubai is at the crossroads of Asia, Africa, and Europe, giving it unprecedented access to trade and commerce from these three continents. As such, it features the busiest airports and seaports in the world and serves as a dominant commercial hub, keeping it highly relevant among investors and businesses.
Relaxed Taxation Policies
One of the most interesting facts about Dubai’s history is that back in 1894, it was one of the pioneer cities to grant complete tax exemption to foreign traders. This was a ground-breaking move that encouraged foreign investors to its shores. In today’s time, the city offers an almost tax-free environment since there is no income or capital gains tax, giving more opportunities for revenue for investors.
Enticing Long-term Visa Options
Investing in a property or properties worth more than AED 2 million in Dubai gives foreign citizens access to long-term residency through the UAE Golden Visa. You don’t need a local sponsor for it. In fact, you can sponsor your family members through it, receive the Esaad Privilege Card, and get exemptions from various employment restrictions.
High Rental Yield
Demand for rental properties in Dubai is evergreen due to the widespread availability of employment opportunities that bring an influx of settlements to the city from across the nation, and the world, by large. With a broad range of property types in the city, having a high Return on Investment (ROI) opens up profitable investment possibilities for investors.
Reliable and Stable Economy
The economy of Dubai is one of the most reliable ones in the world, with a diverse set of industries thriving with immense success. Not to forget, the value-for-money mortgage options provided by financial institutions to investors make investing affordable. This stabilizes the real estate sector further since it is supported by allied industries and sectors, strengthening its foundational pillars.
Russians in Dubai
Over the past several years, thousands and thousands of Russians have settled down in Dubai because of the profitable prospects the city offers to them. They are among the top foreign nationalities to invest in Dubai. The ease of opening bank accounts in Dubai for Russians, the business-friendly environment, and the high quality of life available in the city have always attracted Russians to explore the opportunities of the city.
Furthermore, Dubai serves as a perfect destination for them to relocate their capital. It is one of the safest cities in the globe for high-net-worth families. You can find a number of expat Russian groups and Russian communities in Dubai. The city has always opened its arms to foreign citizens and its multicultural environment has resulted in a diverse population, making it a favourable climate for expats to live comfortably.
The ecosystem of the city facilitates the growth of a worldly community. Additionally, the city allows Russian businesses and corporations to reach a wide global target audience. So, in essence, from escaping the conflict in Russia to benefitting from the viable trade and commerce industry in Dubai, Russians have marked their presence in the city for quite a while now.
Russian Investment in Dubai Real Estate
The real estate market of Dubai offers Russian investors a golden opportunity to diversify their investment portfolio. This is crucial for securing their finances since it helps them from local currency fluctuations as well as the uncertainties of their local economy. The pro-government policies have further encouraged Russian investors to dive into the real estate market of Dubai.
Investing in the properties in Dubai by Russians provides them with a strategic advantage that results in yielding substantial returns. It opens up various avenues for them to accumulate new wealth while mitigating risks in the process. The stable economy of the city is a refreshing take in contrast to the geopolitical complexities of Russia that often hinder real estate investment in Russia.
The appeal for buying properties in Dubai has been further accentuated by the political stability, low crime rate, and elimination of economic downturns in the city. Not to forget, the ease of investment opportunities through escrow accounts protects the hard-earned money of Russian investors with the tightest seal of government-approved line of security.
The quality of life that is provided by Dubai, be it in terms of bespoke amenities or the world-class education system, the highly advanced medical facilities or the unparalleled infrastructural development, is a testament to why it is among the most sought-after cities to not only visit but to reside and settle down for Russians.
How to Buy Property in Dubai from Russia?
Buying properties in Dubai from Russia is a seamless process, especially thanks to the huge initiatives taken by the Government of the UAE to encourage foreign investments to its shores. This has resulted in fostering healthier relationships with the country and the inflow of skilled professionals and talents.
As long as you are on the right side of the law and are maintaining the proper standard procedures, you will face no trouble in investing in the properties of Dubai from Russia. To aid you get acquainted with the entire process, we are providing a quick view of each step of the way you will encounter while buying a property in Dubai from Russia.
Researching and Selecting the Property of Choice
Dubai is home to some of the biggest property developers in the world. You will be spoilt for choices. From luxury penthouses to splendid townhouses, from cozy studio apartments to multi-room luxurious apartments, from magnificent villas to profitable commercial properties, you name it, and you will find it in the city. We encourage you to physically visit the city before finalizing your choice and opting for a reliable and reputable property developer and real estate agent.
Negotiating on the Price of the Property
Once you have whittled down on your choice, you need to negotiate on the price of the property. Hiring a real estate agent will help you significantly in this regard since they are better aware of the nooks and crooks of the nuances of the industry. Their expertise will aid you in fetching a fair deal that will help in maximizing the revenue for you.
Defining the Memorandum of Understanding (MOU)
The next step of the process is defining the objectives of the Memorandum of Understanding (MOU). This non-binding document helps in outlining the terms and conditions of the sale of a property between you, as a buyer, and the seller. It is the first step to establishing a formal mutual understanding between the two involved parties.
Paying the Security Deposit
Following the MOU, you will have to make a payment for the security deposit. It is calculated by deriving a pre-defined percentage of the total price of the property.
Obtaining the No Objection Certificate (NOC)
The next step of the process is that you have to obtain a No Objection Certificate (NOC) from the developer which serves as proof that all the previous service charges have been paid for. It also protects you from fraudulent activities and scams. Additionally, it also proves that the property you are purchasing is free of any legal entanglements.
Facilitating the Transfer of Ownership
Finally, you need to present a set of documents (NOC, buyer and seller IDs, proof of payment, and the existing title deed) and pay a transfer fee, which is 4% of the property price plus admin fees to the Dubai Land Department (DLD). This will register the transfer of the property and once everything is verified by DLD, you will be provided with the new title deed electronically or in hard copy proving you as the new owner of the property.
The Best Areas to Invest in Dubai for Russian Investors
From scenic landscapes to quick accessibility to modern amenities, the following locations check all the boxes due to the geographical advantage they provide to their owners. We have tried to take into consideration a wide range of factors that will make investment in these places a smart option.
Each of them features a fantastic transportation system and is blessed with luxurious as well as affordable properties. Not to mention, from a business point of view, we have tried to put emphasis on locations that will make commuting to work easy.
To give you a diverse platter of options, we have included everything from downtown to beaches, so that you can make your choices based on your preferences. If you are considering investing in the real estate market of Dubai, you need to check out the following areas that are known for high ROIs.
- Dubai Marina
- International City
- Business Bay
- Downtown Dubai
- Jumeirah Village Circle (JVC)
- Jumeirah Beach Residence (JBR)
- Jumeirah Lake Towers (JLT)
- Palm Jumeirah
- Al Furjan
- Dubai South
Tips for Successful Investment in Dubai
As we mentioned earlier, we have in store for you some formidable tips for successful real estate investments in Dubai. Try and incorporate them in the buying process to increase the odds of procuring a profitable return in the long run.
Understand the Market Dynamics
Before diving into investing, you need to study and analyse the historical data that will give you an understanding of the market sentiment. This involves comparing property values and rental yields in different locations.
Grasping the Ownership Regulations
You need to acclimatize yourself to the real estate regulations of Dubai and get clarity on the rental laws, escrow accounts, and ownership restrictions, among others.
Define Your Investment Objectives
Be very clear about why you are investing in the real estate sector of Dubai. Are you looking for long-term capital appreciation, are you hoping to profit from rental income, or is it a combination of both? This will help you narrow down your choice and formulate a better buying strategy.
Pick the Right Location
Opt for a location that will serve you well both personally and professionally. Checking out the transportation system in the area, how family-friendly it is, how accessible it is to major landmarks, the availability of modern amenities, etc. are some of the factors that should dictate your choice of location of the property.
Monitor the Market Trends
Keep yourself informed and updated about the relevant market trends and the various economic factors. We recommend you constantly review the market reports provided by trusted research firms so that you can make a well-informed investment decision.
Take Professional Help
Never shy away from taking professional help in buying a property. They will dramatically improve your investment strategy. From legal advisors who will help you navigate legal compliances to real estate agents with in-depth knowledge of the market, professional help can give you valuable insights to make your investment safe and profitable.
To Conclude
Russians have been one of the major dominant investors in the real estate market of Dubai. The economic stability of the city gives them a reliable platform to engage in smart, safe, and profitable investment opportunities. If you are someone who is looking forward to buying a property in Dubai from Russia, make sure you comply with the legal regulations and take adequate help from legal advisors, real estate agents, and property managers, among others, to secure your investment.
Dubai offers a relaxed taxation policy along with a high quality of life, making it ideal for Russian investors. The multicultural and business-friendly environment of the city further accentuates its appeal to them. So, explore the city, thoroughly research it and make a smart long-term investment.
FAQs
Frequently Asked Questions about Investing in Dubai from Russia
Why are Russians buying property in Dubai?
Dubai offers a myriad of benefits for Russian investors. Whether it is the availability of long-term residency options with real estate investments or the high ROIs, whether it is the urban quality of life or the favourable business climate of the city, the endless opportunities available in Dubai make it an apt location to invest in.
How does Dubai's tax-free regime benefit Russian real estate investors?
The tax-free regime of Dubai is a boon to Russian real estate investors as there are no property taxes and capital gains taxes imposed on real estate ownership in the city. Moreover, there are no income taxes on rental income as well, giving more opportunities for investors to save money.
Additionally, investors get the option to transfer their profits back to Russia with minimal to no restrictions. Finally, the freehold areas in Dubai allow Russian investors to get 100% ownership, making their investments safe and profitable.
Can you transfer money from Russia to Dubai?
Yes, you can transfer money from Russia to Dubai with the help of a money-transferring company.
Can Russians open bank accounts in Dubai?
Yes, Russians can open bank accounts in Dubai as long as they fit the criteria of the banks, which usually involves being at least 18 years old and complying with the financial regulations of the UAE.
Can Russian residents finance a property purchase in Dubai?
Yes, Russian residents can finance a property purchase in Dubai as several financial institutions in the city provide lucrative mortgages and other allied financial options to foreign investors, including Russians. Almost all the banks in Dubai provide mortgage options for non-residents. Not to forget, many property developers offer compartmentalized payment plans on off-plan properties, increasing the affordability of investing in the city’s properties.
What are the long-term visa options for property investors in Dubai?
If you invest in a property or a group of properties in Dubai that are worth more than AED 2 million, then you will be eligible for the UAE Golden Visa that doesn’t require any local sponsor. You will be able to get exemptions from various employment restrictions and can sponsor your family.