Frequently asked questions
Quick answers to questions you may have.
Why Should I Invest in Dubai’s Real Estate?
Dubai’s real estate market is transparent and it offers a high return on investment (ROI) for buyers and investors.
How Long Does It Take To Buy a New Property in Dubai?
It takes around a month to complete the typical property transaction in Dubai. This period commences when the buyer and the seller sign the sale agreement.
What Taxes Do I Have to Pay as a Property Owner?
This is one of the most common real estate FAQs, and since the UAE is a tax-free country, you do not have to pay taxes on the property. But as a property owner, you will have to pay annual maintenance and service charges. The payment frequency varies from one to four times a year, depending on the property.
What Is a Freehold Property?
Freehold property is one that the buyer owns in addition to the land it is built on. This way, the owner is free to keep the property, lease it or sell it, as they have complete authority over the property and how to use it following the rules and regulations. The aim of these properties is to encourage foreign investments.
Can a Foreigner Have 100% Property Ownership in Dubai?
Even though complete foreign ownership was not possible in Dubai until 2006, the government has made new incentives allowing full foreign ownership. The short answer is: Yes, you can have 100% property ownership in Dubai.
What are the fees needed to purchase a property in Dubai?
Here is the division of transfer and registration fees associated with purchasing a property in Dubai:
- DLD fees = 4% of the property price + admin fees (AED 580 for apartments and offices, AED 40 for off-plan)
- Registration fees for properties valued below AED 500,000 = AED 2000 + 5% VAT
- Registration fees for properties valued above AED 500,000 = AED 4000 + 5% VAT
- Mortgage registration fees Dubai Land Department = Up to 0.25% of loan amount + AED 290
- Property service charges – Charged on a square foot basis, ranging anywhere between AED 3 to AED 30 or more.
Can I Close the Deal Without Involving a Real Estate Agent?
You can close the deal without real estate agents; however, it is highly recommended that you get an agent right from the start. The agents’ immense, up-to-date knowledge and market expertise help buyers, property owners, and tenants find a great deal. Moreover, they are the best players in closing a deal at negotiated prices.
What to Look For in a Real Estate Agent?
A real estate agent must fulfil a set of requirements, and they are as follows:
- They must hold a proper trade licence from the Dubai Department of Economic Development.
- The real estate agent and the agency they work for must be registered with RERA. Once registered, the agency receives an Office Registration Number (ORN), while the agent gets a Broker Registration Number (BRN).
- The real estate agent must have a certificate from the Dubai Real Estate Institute (DREI) to register with RERA. They also have to pass a RERA administered professional test.
- The agent must comply with a Code of Ethics issued by RERA.
What is a buyer’s market?
A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term and short-term buyer demand, like: Economic disruption – a big employer shuts down operations, laying off their workforce.
Can I get a residency visa if I purchase a property in Dubai
Yes, it is possible to obtain a residency visa in Dubai by purchasing a property.
The United Arab Emirates (UAE) government has implemented several programs that allow property buyers to obtain residency visas through investment, including 3, 5 and 10 year visas.
Can I sell an off-plan development before its completion date?
Yes, you can sell off-plan property before the completion date.
Can I apply for a home mortgage for an off-plan development?
Yes, It is possible to obtain a mortgage to finance your off-plan property purchase, subject to meeting the individual requirements of the financial institutions.
