properties for rent on Bayut

Rental Property Investment in Dubai: A Gateway to Diversification for South African Investors: Image; Pexels

Dubai rental property: Diversifying investments for South Africans

Unlock Dubai’s property potential. Invest now for growth and diversification. Secure your future with lucrative real estate opportunities.

properties for rent on Bayut

Rental Property Investment in Dubai: A Gateway to Diversification for South African Investors: Image; Pexels

Property investment in Dubai is booming because of attractive financial options and the high demand for properties. Moreover, the rental market in Dubai has grown significantly in the past few years. This is a great time for South African landlords and investors to invest in Dubai with healthy occupancy rates and high rental yields.

Properties for rent on Bayut have revealed an eye-opening jump in property transactions and the property’s overall value in Dubai. The South African landlords and investors are cashing in on the Dubai property boom. The South African property investors in their two-day visit can secure several sales and notable interests. The property market in Dubai is booming because of South African entrepreneurs from different industries and experienced upcoming property investors. Furthermore, the rental yields in Dubai are attracting investors from all over the globe. 

Here’s Why South African Investors Seek Opportunities In Dubai’s Property Market

According to recent media reports in Bloomberg and Financial Times, property values in Dubai are continuing to rise at a record pace, hence amid strong demand for properties. According to Bayut, rental trends for properties in Dubai noticed 59,188 rental transactions amounting to R23,115,752,365 ZAR. This growth has placed Dubai on the top place of the map for the real estate sector. Furthermore, the rental yields in Dubai are attracting investors from all over the globe to invest in thrilling markets. For example, according to Bayut,

  • Rental costs for affordable properties have surged by 4% to 28%
  • The mid-tier segment of the market has reported upticks of up to 23%
  • Asking rents for high-end properties have generally increased by up to 31%

The benefits of property investment in Dubai for South African investors are listed below:

  • Dubai’s affordable entry points
  • Financial and payment plans
  • High mortgage availability

Dubai’s Affordable Entry Points

Investments in Dubai begin from R 5,167,338,0, with new developments for investors (According to the Bayut guide). Dubai’s real estate market offers affordable entry points for capitalization on potential growth. Investors can still enjoy significant returns with lower price points to enter the market. 

Financial And Payment Plans

Financial options are always attracted through off-plan developments. Off-plan investments include flexible payment plans beneficial for rental markets. This is very easy for South African investors to enter the market early, which may benefit from the potential value appreciation. 

Examples of payment plans followed by developers are listed below:

  • Post-handover payment plan

As mentioned, the buyer has to make the payment after the property is handed over to them.

  • 10:90 payment plan

Buyer has to pay 10% of the total price at the time of booking, the remaining 90% is to be paid through instalments agreed upon by both parties. 

High Mortgage Availability

Buyers worldwide can get mortgages aged between 21 and 65, and have a monthly income of R77,510 (salaried) and R129,183 (self-employed). (According to the Bayut guide).

Documents required to get a mortgage include

  • Visa and passport copy
  • Copy of Emirates ID
  • Salary certificate for proof
  • Bank statements for the past 6 months
  • Statement of credit cards

Conditions and regulations to get a mortgage for foreign investors are very easy to follow, which include

  • Find a lender
  • Choosing the right mortgage
  • Get a pre-approval letter
  • Finalise your property purchase

A Guide To Buying property For South Africans And Non-Residents in Dubai

Foreign nationals, both residents and non-residents, can buy properties in Dubai on a freehold basis. Residents and non-residents can sell, buy, and lease their properties in Dubai. The eligibility criteria for buying a property in Dubai includes a resident visa which is important for buying a property. To confirm their identity when purchasing a property, it is required to hold a valid passport. Foreigners buying a property in Dubai can get a mortgage from the banks.

The benefits of buying a property in Dubai for foreigners include,

  • Competitive property prices
  • High rental yields 
  • Investor-friendly tax system
  • Residence visa
  • Comprehensive property management

Regulation For Buying A Property In Dubai

It is very important to understand the legal requirements when purchasing a property in Dubai. The law governing the property in Dubai is law no.7 of 2006. According to this law, you can buy a property in Dubai if you are a UAE or GCC citizen. 

If non-residents want to buy a property in Dubai article no. 3 of Regulation No. 3 of 2006 will be implemented. Moreover, freehold properties are limited to specific areas. 

Before purchasing a property for foreign investors, they need to follow the following steps:

  • Start property search
  • Determine budget and requirements
  • Size, type, and location of the property
  • Proximity to schools
  • Proximity to hospitals
  • Proximity to restaurants and transportation

A reputable real estate agent can help in buying a property in Dubai. They can help to find suitable properties, negotiate prices, and guide you through legal processes. 

Ownership Transfer With DLD

Ownership transfer is the last legal step to buy a property in Dubai. After obtaining the NOC investors need to visit the Dubai Land Department DLD to transfer property ownership. They have to submit the required documents including valid identification, sale agreement, and proof of payment. Then they will pay the transfer and registration fees as required by the DLD.

The following documents must be ready while visiting the DLD department:

  • A cheque from the manager for the property price payable to the seller
  • Emirates ID and passport
  • Original NOC issued by the developer
  • MOU

Admin Costs Involved In Buying A Property In Dubai

The admin costs involved in buying a property in Dubai comprise:

  • DLD fees are 4% of property value, R 2,259 for land R 210 for off-plan, or R 3,047 for admin fees for apartments and offices.

Property registration fee includes:

  • Property value below R 2,626,790: R 10,507 + 5% VAT
  • Property value above R 2,626,790: R 21,014 + 5% VAT
  • Agent fees of 2% of property value

Unlocking Boundless Opportunities: Investing In Dubai Properties

Dubai property presents a compelling opportunity for investors looking for lucrative returns on investments and diversification. Dubai offers boundless investment options, from luxury residential developments to commercial and hospitality projects. Affordability, a stable economy, and the potential for capital appreciation make Dubai an attractive place worldwide. 

The most demanding luxury apartments for rent in Dubai are listed below:

  • Business Bay
  • Downtown Dubai
  • Dubai Marina

Business Bay

Business Bay is a thriving residential and commercial district and is located in the heart of the city. It offers a seamless blend of high skyscrapers, a front waterfall, and state-of-the-art amenities. Business Bay is a hub for global business, finance, and commerce. Business Bay Dubai spans 46.9 million sq. ft., of which 22.1% is allocated for residential projects, 18.5 % for commercial use, and 59.4% is dedicated to mixed operations. (According to Bayut). 

A list of features and amenities of Business Bay is listed below:

  • Parking spaces are available
  • Electricity backup is available
  • Central heating facility
  • Double-glazed glass windows
  • Service elevators
  • Gym or health club
  • Facilities for disabled persons
Apartment typeTotal areaAvg. Annual rent ®Change from the previous year
3-BED46.9 million sq. ft.1,090,30820.9%
Property information in Business Bay: Supplied

(According to the Bayut report, this data is derived from the luxury apartments for rent in Business Bay Dubai).

Downtown Dubai

Downtown Dubai is a mixed-use development by Emaar Properties located in the heart of the city. It is located near the Sheikh Zayed Road (E11) on the northwest point.  Downtown Dubai is well-known for its landmarks, shopping malls, and nearby attractions like Burj Khalifa, Dubai Mall, and Dancing Fountain. 

A list of amenities and features in Downtown Dubai is listed below:

  • Lobby in building
  • Centrally-air conditioned
  • Kids play area
  • Balcony or terrace
  • 24-hour security
  • 24-hour guest facility
Apartment typeTotal areaAvg. Annual rent ®Change from the previous year
3-BED2,400 sq. ft.2,123,77514.3%
Property information in Downtown Dubai: Supplied

(According to the Bayut report, this data is for the luxury apartments for rent in Downtown Dubai).

Dubai Marina

Dubai Marina is in the neighbourhood of Dubai. This luxury community is equipped with skyscrapers, dining, and entertainment options. This community also offers a waterfall for its residents. This community is well known for buying luxury apartments in Dubai.

A list of amenities and features in Dubai Marina is listed below:

  • Shopping malls
  • Mall Road easy exit
  • Mosques    
  • Swimming pool
  • Lobby in building
  • Service elevators
  • Reception/waiting room
Apartment typeTotal areaAvg. Annual rent ®Change from the previous year
3-BED2,649 sq. ft.1,333,17314.6%
Property information in Dubai Marina: Supplied

(According to the Bayut report, this data is for the luxury apartments for rent in Dubai Marina).

Final thoughts

Dubai is a mix of pro-investor policies and has particularly resonated with South African investors. To preserve wealth these are drawn into Dubai’s property market. The property market in Dubai is characterised by high demand with limited supply. 

This scenario is likely to continue until the completion of off-plan developments. Property investors in South Africa should look into the following reasons for buying property in Dubai, these reasons are listed below:

  • Sought-after locations
  • Affordable spaces
  • Impressive ROI stats
  • Attractive add-ons

Similarly, investors from South Africa should consider Dubai Properties for rapid potential growth and diversification. Dubai’s market provides handsome rental yields and significant capital appreciation prospects. Compared to South Africa, Dubai provides a secure investment environment and dynamic economy. 

Frequently Asked Questions (FAQ’s)

Q: Can a South African buy property in Dubai?

A: Despite the weakening Rand, the Dubai property market remains a highly accessible venture for South African investors. The entry-level prices are on par with South Africa’s upper middle class and luxury property sectors, making it a familiar investment scale for South Africans.

Q: What are the benefits of investing in Dubai for South African investors?

A: The benefits of investing in Dubai for South African people are listed below:

  • Diversification
  • Stable economy
  • Favorable tax policies
  • Strategic location
  • World-class infrastructure

Moreover, according to the investor visa rule in Dubai, a golden visa is granted to those investors who invest in an existing property worth a minimum of R 52,535,800. Golden visa allows investors to live, work, and sponsor their families.

Q: Is it easy to move to Dubai from South Africa?

A: For South Africans planning to move to Dubai, it’s crucial to understand the various visa options available. These visas cater to different purposes, and for relocating from South Africa to Dubai, you’ll require a visa that permits a longer stay or work in the UAE.