Property Investment Advice
Dubai Property FAQ's
These are some of the most frequently asked questions and answers about properties in Dubai.
Purchasing real estate in Dubai may grant the buyer a residence permit. According to the UAE investor visa program, the property must be completed upon the purchase and its value must be of at least AED 1 million.
Transfer fee: This fee is charged when ownership of a property is transferred from one party to another. The fee is 4% of the property’s sale value, payable by the buyer.
While resident expatriates can generally borrow between 70% and 80%, non-residents can generally borrow 60% to 70%. It all depends on the lender, and the project they are lending on.
- Liberalisation of the real estate sector – expats can now own property
- High tax-free yields on freehold property rental
- Globalisation and its effects on property prices in metropolitan cities worldwide
- Favourable interest rate environment
- Mortgages & homeowner finance available
- Granting of “permanent” residency upon purchase of freehold properties
- Great Value – Real estate land & apartment valuations are cheap compared to international prices
- Conducive lifestyle: safe, tax haven, secondary and tertiary home for international buyers
- Dubai’s robust economic growth p.a.(GDP)
- Dubai’s robust population growth p.a.
Typically, the prospective Buyer and Seller enter into an MOU, wherein the buyer commits to purchase the property and the seller commits to sell the property. In a purchase transaction, the buyer pays an initial booking deposit (of not more than AED 100,000 for villas and apartments) to the seller.
If the buyer withdraws from the transaction, the buyer forfeits his booking deposit. If the seller withdraws from the transaction, the seller refunds the booking deposit amount. The buyer pays the balance considered to the seller upon transfer of the property to the buyer.
No, you don’t have to pay tax if you are a resident abroad. You only pay if the Dubai property is designed for living in, such as your own home, and student and employee accommodation. Then it is considered residential and exempt for VAT purposes. However, 5% VAT applies to commercial properties.
Freehold property is any estate which is “free from hold” of any entity besides the owner. Hence, the owner of such a property enjoys free ownership for perpetuity and can use the property for any purposes however in accordance with the local regulations.
The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death.
A leasehold property is one where you own the property but not the land it’s built on. Leasehold properties typically have a fixed tenure, often 99 years
DLD is responsible for registering all property transactions, ensuring their legality and accuracy.
You can verify an agent’s license on the Dubai Land Department’s official website.
Yes, it’s possible to use a mortgage from an international bank to buy property in Dubai, but terms may vary.
Off-plan properties have specific payment plans and usually require an initial deposit.
Yes, you can sell a mortgaged property, but the mortgage must be settled during the sale.
Avoid making rushed decisions, not doing due diligence, ignoring market trends, and not having a clear budget.
At present, property transactions in Dubai are conducted in traditional currencies, but cryptocurrency transactions are an evolving concept.
You can apply for long-term residency by investing in specific property categories, which usually involve a minimum investment threshold. Consult with the relevant authorities for detailed requirements.
Popular areas include Dubai Marina, Downtown Dubai, Palm Jumeirah, and Jumeirah Village Circle, among others.
Popular websites for finding properties include Property Finder, Bayut, Dubizzle, and the official RERA website. You can also check the properties on our selection DXB Luxury Properties
