How to get a mortgage that gets you your dream home in Dubai while saving you money

Rents just keep going up, your salaries are staying the same, meaning you are losing more and more of your monthly disposable income to a property that you don’t even own! Stop this headache right now and consider buying your own property in Dubai. With so much freehold on the market, and something for all different types of income level, be it modest or very high, there is something out there for you. Even the highest of income earners would agree that paying out more than half your income on rented accommodation is not practical in the long term. Sure, property prices have risen over the past couple of years, but other important factors have been created out of this such as better freehold property law and more choice when taking out a mortgage.

The old situation

Early buyers that needed to get a mortgage to buy property in Dubai were severely restricted in doing so as they had two choices: Amlak, the subsidiary lender of Emaar, or Tamweel, the financier of Nakheel. That was about it as there were the first property developers on the market, and there was no stable law in place.

Fast forward to now

These days, the government has completely opened up the property mortgage market, making it a more competitive place and of huge benefit to homebuyers. A lot more banks are offering home mortgages at competitive rates, and this means that Amlak and Tamweel have lowered their rates. The choice of lenders includes RakBank, HSBC, National Bank of Dubai, Mashreq Bank, Barclays and many, many more. See our mortgage tables for more details on rates and restrictions.

Saving your money through a mortgage

Not only can buying a house mean you are using your income more wisely, but it can also save you money. With some rents spiralling out of control, the monthly amount that you pay out in a mortgage payment, if you find a good deal, will be lower than the amount you would be paying out in rent, and you are buying a house at the same time!

We are happy to help any property investors on the market, whether you are trying to buy a property, sell a property, rent a property, or need more information on the details in between.

Thinking of buying a property in Dubai but not sure where?

If you look across the city of Dubai, there’s freehold property popping up all over the place, but where is the right place to buy? This all depends on what type of property you want to buy, an apartment or villa, as villas are at present in a limited area, and apartments are everywhere it seems, here are a few general districts that property buyers might want to consider before they buy:

The waterfront option

There are some great properties for sale, either near the waterside, on right on the beach. For all those people with plenty to spend, the Palm Jumeirah is close to completion, and most residents have already moved in. With homes right on the beach, and a great variety of apartments and townhomes on the trunk, everything you need is right here. Amenities and hotels are being constructed now and soon will be open to more and more people. If you can wait a while, then the Palm Jebel Ali is also under construction a few kilometres down the coastline. For apartment buyers, the Dubai Marina is full of various sub-developments of interest, including the original Emaar project and even the Jumeirah Beach Residence, which is right on the beachfront! The choice is yours really, and all these properties cover a variety of prices.

In the middle of the city

Early freehold was restricted to being outside the city, but now there are a number of developments right in the middle of it. Burj Downtown is probably the most recognisable of these, offering a mixture of styles in apartment living with the best facilities possible. Just next-door is Business Bay, which will combine residential and commercial space into one great community next to the creek. On the other side of the city is Festival City, a massive development that will offer entertainment next to luxury living in a variety of exclusive apartments.

Further inland

More and more property developments are being used to extend the city further inland, and these include the established Emirates Living Community and adjacent developments, but most prominently, Dubailand will move the heart of the city. This project will be where there is nothing but deserts now, but many areas, which have been deserted, have seen a massive turnaround from freehold projects. For villas, the Emirates Living Community includes a mix of villas from Emaar, and is the biggest freehold residential area now. Dubai land is set to feature numerous freehold villa sub-developments, which will interest buyers, but again these are several years away from completion.

The great thing about buying in Dubai is that you can live anywhere, by the sea, on the sea (waterhomes on the Palm Jebel Ali), in the city, or way above it by living in Burj Dubai Tower. For buyers that want to live in the new Dubai district, there will be many developments there over the next few years.

Emaar today and Nakheel tomorrow

The current property market in Dubai has opened up to introduce new developmenters such as Omniyat, Damac, Vakson and Schon. Theses developers are certainly making their mark on the industry with a variety of single developments and sub-developments within larger projects. However, as the market stands now, there are two leading developers that continue to dominate the construction of freehold property in Dubai and these are Emaar properties and Nakheel properties.

Emaar, the developer that started it all

The flagship developer of freehold property was certainly Emaar, which announced the Dubai Marina project first, and then released the first finished development with The Greens. Since these humble beginnings, Emaar has branched out to add to its already impressive stand within the freehold market, and it is currently responsible for the hugely ambitious Burj Downtown development, including the Burj Tower itself, the tallest building in the world. Other popular Emaar projects include The Meadows, The Springs, The Lakes and Emaar Towers. Emaar also has its own branch of financier, Amlak, that previously was the only company to offer mortgages in the market, but now faces competition from a number of international banks in the United Arab Emirates.

Nakheel, leading the way of the future

Nakheel has followed on from Emaar by creating a large number of freehold projects that are more spread across the market, including retail complexes, luxury property and more budget property. Nakheel is most recognised globally as the developer responsible for the Palm trilogy, the first of which is almost complete, and The World. Nakheel has undertaken the difficult task of adding some unique projects onto the Dubai property market, as well as some much-needed cheaper property to bridge the gap between who can afford to own a home here. With International City and Jumeirah Village proving popular with investors, Nakheel is starting to dominate the property market and is set to do so into the next few years with The Waterfront project, Palm Jebel Ali, Palm Deira, and of course, finishing The World and Palm Jumeirah.

The Future of Dubai property

While Emaar and Nakheel will continue to have the most impact on the Dubai property market, there are other new and exciting smaller projects that anyone looking to invest should pay attention to as these can often be cheaper than the more commercialised offerings. The property market is predicted to slow down in the future, but as some projects are expected to extend even as far as 2018, we will see new and exciting developments for years to come.

How to give your well earned savings that extra boost!

Most Dubai residents are here to save their money, which would be harder back in their home countries, but increasing rents and increasing costs of living are starting to have significant drawbacks on the Dubai lifestyle and levels of savings, especially the former reason. Don’t just let your savings dwindle, put more of your money away, or put your savings to a good cause and

Save more by owning your own home in Dubai

The biggest drain on savings is the cost of renting accommodation in Dubai; it’s just too high! This is a stark contrast from a few years ago, when property was more affordable to rent and most people reported high saving rates. Now, only two years later, even high earners are feeling the strains of renting property here, and some rents have increased several fold in such a short space of time. For this reason, more and more Dubai residents are investing in their own freehold property, as they realise it’s better to pay out a monthly amount in mortgage than to pay out the same, or even more in rent that doesn’t get you anything for your money. Using your savings for a property means you are investing your savings, not losing them to rent, and you have a great place to live as well.

If you have the funds, why not do some renting of your own

Despite the high rental rates, many people will continue to pay these high rental rates due to the shortage of accommodation on the market, which is a good opportunity for ambitious residents to rent out their own properties. If you own more than one property, one for you to live in, another just as an investment, why not rent it out, and put the income you earn towards your mortgage, it will probably more than cover it! Obviously, not everyone can afford to do this but there are a number of investors that bought cheap early on, and have really reaped the rewards of doing so. Be warned though, some developers, like Emaar, have restrictions on the periods you can rent your house out for, so be sure to do some research first!

Don’t let the recent price increases cause you stress when you can do something about it. Be sure to contact us and solve your rental problems by investing in your own Dubai freehold property and keep your savings high like they should be.

Palm properties prove profitable for England footballers

Turns out profiting from buying freehold in Dubai doesn’t just apply to the common person, as a number of celebrities and leading footballers have taken advantage of Dubai’s prestigious developments to make a killing on their investments. The England football team make a quick stopover here before the World Cup in 2002, and developer Nakheel was quick to offer signature villas to the team at discount prices. For just 600,000 pounds, footballers could own a piece of history with luxury villas fitted out to each owners individual specifications. With such a bargain offer, buyers included David Beckham, Joe Cole, Kieran Dyer, David James, Gary Neville and Ashley Cole.Celebrity property investment in DubaiThe whole idea of offering lower prices to the footballers, although they can obviously afford the villas easily, was to bring a higher level of prestige to the Palm Jumeirah and follow-on developments. The Palm has already been recognised worldwide due to its unique design and innovative living concept, but the added prospect of owning property next to the rich and famous gives property investors an added incentive. Attaching celebrities to the project has made sure that the properties stay highly in demand, and keeps the prices above many other developments that are ongoing in the city. Other celebrities include Michael Schumacher, Shar Rukh Khan and Italian footballer Francesco Totti.A good investment in Dubai real estateNot only has the celebrity investment in the Palm Jumeirah helped to raise the profile of the project, it has also reaped massive rewards for the buyers, even before their projects were finished. Now that the majority of the first Palm development is complete, early buyers can now sell their finished villas for around 2.5 million pounds, a massive profit from the initial discount price, and even early non-celebrity buyers have seen great returns. All in all, it pays to be a celebrity in more ways than one!For more information on buying a property on the Palm Jumeirah or any other Dubai freehold developments