Personal Experience of Buying Two Apartments in Dubai, for income and living

Buying a home in a foreign country is not for everyone. Many are frightened by the apparent complexities of the process and unfamiliar legislation. However, in recent years, more and more people are investing in foreign properties, such as in Dubai.

The example of owning two or more properties in Dubai is the exception rather than the rule. Nevertheless, these exceptions prove that such investment practices can be quite lucrative and of interest to buyers. Vladimir shared with us his personal experience of buying through a real estate agency, and within a year became the owner of two apartments in the emirate.

Vladimir, 43, Owner of a Plastic Surgery Clinic:

“I thought about investing in real estate to rent a couple of years ago. At first, I wanted to figure everything out on my own, but then I turned to a brokerage agency. I was offered an opportunity to consider the UAE, and this option seemed interesting. The agent explained that leasing out property in Dubai and earning rental income could be very profitable. I agreed, and we proceeded to the selection of a residence.

The broker gave me a virtual guide of the geography of the emirate and told me which areas are the most in-demand among tenants. We have chosen the Business Bay area, which is not only popular and profitable but also beautiful. The deal was completed very quickly. I bought a small one-bedroom apartment with a kitchen studio and a small terrace, which is the best option for renting out. It happened in the winter of 2021.”

The average cost of 1 m2 of housing in the Business Bay area is 14,569 AED ($3,900). The average price of a finished property is AED 1.79 million ($489,000). The cost of an annual apartment rental is 97,000 AED ($26,500). The annual liquidity of real estate in this area is 5.40%.

“Afterwards, my wife and I went to Dubai to check everything. After all, we had bought an apartment. We have never been to the UAE before and we liked it here. By that stage, we had already transferred the real estate to a management company that could rent it out, and the first tenants were supposed to move in immediately after our departure.

The first apartment was quite small, just over 50 m2, and cost just under 730,000 AED ($198,500). Accordingly, the amount did not reach the threshold required to qualify for Taskeen. But at the time of purchase, we, of course, did not think about it.”

Taskeen is a program for obtaining a three-year residence permit in Dubai for an investor and his family members, which is available on property purchases over AED 750,000 ($204,000). Until September 2021, this threshold was 1 million AED ($272,500).

“We spent a couple of months thinking about how sad it was that we didn’t buy a house for a slightly higher price, but it was too late to complain. In addition, the apartment was really in great demand on a short-term lease basis. My wife and I were a little hesitant but still decided on another purchase that would cover the amount needed to obtain a residence permit. We began to look closely at the prices for a small two-room apartment so that it would be comfortable for us to live there, while my wife expressed the wish to choose it ourselves. We contacted the broker again, arrived in the emirate and chose a two-bedroom apartment in Dubai Marina. My wife loved the view of the harbour from the balcony. So, we bought two apartments in Dubai.

We then obtained a residence permit pretty quickly, and this winter we spent a little over two months in Dubai – an incredible experience! When we are in our motherland, the second apartment is also rented out for short-term rent. The first one, just a couple of weeks ago, was rented out on a long-term lease to a girl who works there, in a nearby office. Income, as they explained to us, will decrease slightly, since the liquidity of a permanent lease is slightly lower, but now there is no need to worry that the apartment may be idle at some point.”

The average cost of 1 m2 of housing in the Dubai Marina area is 13,751 AED ($3,700). The average price of a finished property is AED 1.65 million ($449,000). The cost of an annual apartment rental is 131,000 AED ($35,500). The annual liquidity of real estate in this area is 7.95%.

“Certainly, buying two apartments in Dubai is a big plus. This is a guarantee that your money is safe and will not depreciate. In addition, I receive a solid monthly income. Having owned two apartments for almost a year and seeing an increase in demand for rentals, I see that I made the right investment. Thanks to the purchase, we obtained a residence permit and a second home, which my wife adores and where we can go at any time.

The cons are, of course, double taxes and spending. I pay for the maintenance of two apartments, which is expensive per year, and utilities for two properties, although I don’t even live in them for most of the year. But since they are almost always leased, they pay for themselves.

If I were asked to advise those who are planning to move to Dubai (although I do not live there permanently), I would recommend contacting specialists. Now, in hindsight, I understand that without a professional broker, I would not have made such a good choice.”

If you are thinking about buying property in the UAE to obtain a residence permit or for investment, please contact our competent team at AX CAPITAL, a real estate agency in Dubai. We will help you select the best option that meets your needs.