For many people, Dubai has become a choice destination to move abroad to. Located in the United Arab Emirates, Dubai offers beautiful weather, a vibrant city lifestyle alongside some beautiful beaches.
The city is perhaps most known as being a hub for those who wish to live lavish lifestyles and drive expensive cars, but in recent years, it has become the perfect destination for expatriates to call home, especially in 2022.
Who Is An Expatriate?
An expatriate, often known as an expat, is a person who lives and/or works outside of their place of citizenship, frequently momentarily and for professional reasons. A person who may have given up their citizenship in their native country to obtain citizenship somewhere else in the might also be considered an expatriate.
An example of an expatriate may include a person who was born in the city of London, England who works as a software developer for a company that is based in the Netherlands and who spends are large portion of their time in the Netherlands for work would be considered an expat. The individual may be on a temporary assignment to the Netherlands for a portion of the year or a few years at a time.
Depending on where in the world you have native citizenship, you may have to income pay taxes in both countries. However, Dubai has become a popular choice for expats to reside in as there are no income taxes on wages or salaries paid within the United Arab Emirates. This can increase the earning potential for expats living in the city of Dubai.
With the extra income, expats working in Dubai could use this money to invest in assets such as property in Dubai, which has become a booming, lucrative industry.
Cost Of Living In Dubai As An Expat
Just like any major city, you can expect to pay a little higher for day to day living than if you were in a smaller town or village. The cost of living in Dubai will vary greatly depending on where in the city you live, whether you live by yourself or with others and what your weekly and monthly expenditures are.
According to DMCC, the average cost of renting a studio apartment in the centre of Dubai is roughly AED 5,141, which is around £1,200. This is much cheaper than the average studio apartment in central London, which could set you back as much as £2,000 for a small apartment.
A single person could expect to have a monthly cost of around AED 3,477 which is about £800, marginally cheaper than that of London, which is around £900 without rent.
This means that a single person who is living as an expat in Dubai could expect to incur a monthly cost of about £2,000 including rent to live comfortably in the centre of Dubai, which is much cheaper than the almost £3,000 including rent needed to live in central London.
The fact that living costs are around £1,000 less to live in Dubai than in London is why many expats are choosing to come and stay and work in Dubai. Not to mention the fact that there is no income tax on salaries or wages received in the United Arab Emirates.
Between tax savings and lower living costs compared to London, this could leave expats with an extra £1,000 per month that could be invested in valuable assets in Dubai such as property.
Should I Buy Property In Dubai As An Expat?
If you’re an expat currently living in Dubai, or you want to become an expat in Dubai, investing in property is a brilliant idea. Whether you want to root yourself in the city of Dubai or you plan to buy to let, property in Dubai is a great investment. There are three different types of property available for expats to purchase in Dubai.
Freehold – Freehold purchases are equivalent to UK purchases. When you purchase a piece of property, it becomes yours to use anyway you like. Even though you can still acquire certain apartments and other residences freehold, houses make up the majority of freehold property.
Commonhold – Commonhold, which frequently refers to apartments, indicates that even though you buy the home, the owner—typically a developer—requires that you pay for maintenance. You own your home, but the developer controls the building as well as any common amenities. If you stay consistent with the maintenance payments, you are able to sell, lease out, or transfer the property’s ownership exactly like a freehold.
Usufruct – Usufruct is similar to leasehold in that you buy the rights to a property for a set period of time, typically up to 100 years. Usufruct ownership gives you the same freedom to use the property as you would if you had a freehold.
As an expat buying property in Dubai is relatively straight forward, you do not need to have any specific residency to start investing in property and there are no foreign buyer permits needed and you do not need to account for any rigorous regulations.
Thinking About Investing In Property In Dubai?
Whether you’re an existing expat who currently resides in Dubai or you’re planning to take the leap and move to Dubai and you want to start investing in property because of the wonderful benefits of zero income tax and a booming housing market then we can help.
We are a reliable and knowledgeable Dubai real estate company who can help you find the property of your dreams in Dubai. Regardless of whether you want to set up a permanent base in Dubai to start your life in a new and exciting city, or you simply wish to invest in a property to lease, our experienced team can help. Get in touch with our team for more information.
