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FAQ

1Who can buy property in Dubai?

UAE residents and foreigners can buy property in Dubai.Foreigners can own freehold properties as long as they’re within designated areas. These include regions such as Palm Jumeirah, Downtown Dubai, Dubai Marina, and Jumeirah Beach Residence.

2What are the rules to buy property in Dubai?

UAE and GCC citizens can purchase real estate anywhere in Dubai, while foreigners are restricted to designated areas for property ownership. This is as per the Real Estate Law No.7 of 2006.

3Cost of owning a property in Dubai?

The additional cost of owning a property in Dubai apart from the property cost includes government and administrative fees, agent and brokerage fees, bank and mortgage costs, property maintenance costs, insurance costs, etc.

4What documents are required for purchasing a property in the Dubai, UAE?

The documents required for purchasing a property in Dubai include the original title deed, a no-objection certificate (NOC) from the developer, and the buyer's and seller's original passport, visa, and Emirates ID.

5What are the key benefits of investing in property in Dubai?

Investing in Dubai real estate offers many advantages, including eligibility for the Golden Visa program providing long-term residency to investors and their families. Beyond this, Dubai’s tax-friendly policies enhance returns on investment.

6Are there any taxes associated with owning property in Dubai?

There is no income tax on personal income, salaries, capital gains, and inheritance in the UAE. However, a Value Added Tax (VAT) was introduced in 2018, which is applicable to most products, goods, and services in the country.

7What should I consider when choosing between freehold and leasehold property options?

The decision between buying freehold and leasehold properties depends on your investment goals and budget. Freehold property gives you complete ownership whereas leasehold property can be leased for a period of 99 years.

8Can any foreigner own a freehold property in Dubai?

Foreigners including non-residents and expats can own freehold property in designated areas in Dubai. This allows them unrestricted ownership of the property.

9What is a property transfer fee in Dubai?

Property Transfer fee in Dubai is the fee payable by the buyer to the Dubai Land Department (DLD) when transferring property ownership from one party to another. This is 4% of the property’s sale value.

10Are there any specific areas in Dubai that are considered particularly promising for property investment?

Some of the popular areas for property investment in Dubai are Palm Jumeirah, Emirates Hills, Dubai Marina, Jumeirah Golf Estates, Business Bay, and Downtown Dubai.

11How do I calculate potential returns on my property investment in Dubai?

The formula for calculating ROI on property is:

ROI= ((Revenue-Operational Costs) / Total property cost)*100%

For example,the property cost is AED 1,000,000 with a 4% Transfer fee and a 2% agency fee (inclusive of VAT). Estimated rental income is AED 90,000 per year and maintenance and services are AED 15,000. ROI= (90,000-15,000)/1,063,000 = 7.0%

12What is the minimum investment to buy property in Dubai?

There is no fixed minimum investment amount to buy property in Dubai. It varies based on the type and location of the property. However, to be eligible for a Golden Visa, you need to make a minimum investment of AED 2 million.

13What are the eligibility criteria for obtaining a mortgage for a property in Dubai?

: The eligibility criteria for obtaining a mortgage for a property in Dubai require nationals and expats to be between the ages of 21-65 and have a stable income and good credit rating. The minimum salary requirement is AED 15,000 or AED 25,000 for self-employed, although this varies based on the bank. Non-residents can also obtain property mortgages in Dubai.

14How much down payment is required for a mortgage in Dubai?

The minimum down payment for a property mortgage in Dubai is 20% for expats and 15% for locals.

15Are there any restrictions on the maximum mortgage loan-to-value ratio in Dubai?

The maximum mortgage loan-to-value (LTV) for an expat is 80% and 85% for a national if the property purchase price is below AED 5 million. This is reduced to 70% for expats and 75% for nationals for properties over AED 5 million.

16Can I get a mortgage as a non-resident or expatriate in Dubai?

Yes, a non-resident or expat can get a mortgage in Dubai.

17What are the typical interest rates for mortgages in Dubai?

The average interest rate for a mortgage in Dubai is currently between 2.99% and 4.99%, depending on the lender and type of mortgage.

18How long is the mortgage application and approval process in Dubai?

It takes around 10 working days to complete a mortgage application process and about four to six weeks for final approval and property settlement.

19What happens if I default on my mortgage payments in Dubai?

Not paying mortgage payments in Dubai can lead to fines, property seizure, or imprisonment as per the contract. If you have a valid reason, you can renegotiate the terms with your mortgage provider.

20What are the steps involved in the property-buying process in Dubai?

The steps to buy property in Dubai are: Preparing the contract, signing the real estate agreement, applying for a No Objection Certificate (NOC), and finally transferring ownership.

21How long does it usually take to complete a property transaction in Dubai?

It generally takes 4-6 weeks to complete a property transaction in Dubai if the seller has no existing mortgage on the property, and 6-8 weeks if the seller has a mortgage.

22What is the role of a real estate agent in the property-buying process?

Real estate agents play an important role in the property-buying process by providing valuable information, negotiating deals, assisting with paperwork and legal requirements, and saving your time and money by coordinating the transaction from start to finish.

23Is it possible to negotiate the price of a property in Dubai?

Yes, you can negotiate the price of a property if you think it is overpriced or beyond your budget. You can speak to your real estate agent to see if there is any room for negotiation.

24What are the legal protections for buyers in Dubai's real estate market?

The government has numerous laws protecting the rights of property buyers ensuring transparent, legal, and fair practices when buying property in Dubai.

25Are there any specific contracts or agreements involved in property transactions in Dubai?

Some of the important contracts involved in property transactions in Dubai are
Form A: agreement between seller and agent
Form B: buyer’s agent agreement
Form I: agreement between two or more agents
Form F: purchase agreement between buyer and seller
Form U: notice of cancellation of the agreement

26How does the Golden Visa program work for property investors in Dubai?

If you own a property worth AED 2 million or above at the time of purchase, you can apply for a 5-10-yearGolden visa. You can sponsor your spouse, children, or parents under this visa.

27What are the eligibility requirements for obtaining a Golden Visa through property investment?

The eligibility criteria for obtaining a Golden Visa through real estate investment is to own a property or group of properties with a purchase value of AED 2 million or above.

28Can I apply for a Golden Visa for my family members if I invest in property in Dubai?

Yes, you can apply for a Golden Visa for your family members if you invest in property in Dubai. This includes your spouse, children, and parents.

29What are the benefits and privileges of holding a Golden Visa in Dubai?

The benefits of a Golden visa in Dubai are: long-term residency for 5-10 years, no sponsor required, sponsor family members, staying out of the country for more than 6 months, sponsor an unlimited number of domestic helpers, and exclusive travel and health benefits.

30What are the advantages of buying an off-plan property in Dubai compared to a ready property?

The main benefits of buying an off-plan property are their lower prices compared to the market price once the project is completed. Investors can get higher capital appreciation, pay lower upfront costs, and get access to flexible payment schemes.

31Are there any risks associated with purchasing off-plan properties in Dubai?

Some of the risks associated with buying off-plan properties are delayed construction or handover, cancellation of the project, and fluctuating market prices.

32How can I verify the reputation and credibility of an off-plan property developer in Dubai?

You can verify the credibility of a developer by checking their registration with the Real Estate Regulatory Agency (RERA), reading reviews or testimonials online, visiting project sites, and enquiringabout their financial stability to real estate agents or legal advisors.

33What is the expected completion timeline for off-plan properties in Dubai?

The expected completion timeline for off-plan properties in Dubai usually takes 2-3 years for smaller projects and around 4-5 years for larger projects. This may vary based on the size of the project, location, and other factors.

34What are the advantages of buying a ready property in Dubai?

Buying a ready-to-move property offers immediate occupancy, avoids construction risks, helps you earn rental income immediately, enhances resale value, and ensures the quality of the property.

35Are there any government incentives or initiatives to encourage property investment in Dubai?

The Dubai government has introduced various measures toencourage property investment such as offering tax incentives, Golden visa policies, and establishing free zone areas.

36What are the rules and regulations regarding property maintenance and repairs in Dubai?

In Dubai, the property owner is responsible for all maintenance and repairs.

37What is the approximate rental yield of residential properties in Dubai?

Dubai offers an average gross rental yield of 6-7%.

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