Frequently Asked Questions

Yes, Dubai Properties sells freehold properties to both local residents and international investors.

Yes, the laws in Dubai permit residents and international investors to purchase property in Dubai’s freehold market.

Yes, any person of any nationality, whether they are a resident of Dubai or based abroad, can purchase property in Dubai’s freehold market. You are not required to hold any type of residency or similar permit in order to purchase property.

The process of buying a property includes four basic legal steps that need to be followed in Dubai.

1. Establishing buyer and seller agreement
   Once you have found a property that you want to invest in, you must consult a real estate agent. They will help you communicate, negotiate and outline the terms of sale with the owner.
2. Signing an agreement for sale
   Once all the details are finalized, it’s time to sign the agreement of sale, also known as the Memorandum of Understanding (MoU). In Dubai, this document is entitled ‘Contract F’ and is available on the Dubai Land Department’s website, under the ‘Contracts’ page. Upon signing this contract it is standard practice in Dubai for the buyer to pay a 10% deposit of the property value to the seller.
3. Applying for a No Objection Certificate (NOC)
   To allow for the transfer of ownership you must apply and pay for a No Objection Certificate from the developer of the unit you are purchasing. This will allow for the transfer of ownership. Once all outstanding service charge payments are finalized the developer will be able to provide an NOC.

4. Transfer of ownership with Dubai Land Department

    Once you have obtained the NOC, you will need to meet the seller at the Dubai Land Department (DLD) to have a new title-deed drawn up. Before the title-deed is provided, DLD requires the buyer to make a payment of the property price in the form of a cheque. This cheque should be made payable to the seller on the date of the transfer.

An average property transaction in Dubai takes around 30 days to complete from the date on which the Agreement for Sale is signed.

The UAE government implemented a landmark policy by introducing value-added tax (VAT) at a rate of five per cent, effective from January 1st, 2018.
The VAT law states that all real estate transactions, apart from the sale of vacant commercial properties and commercial property leases, are either not subject to or exempt from the tax.
In other words, there is no VAT charged on the rent for residential accommodation. However, it is possible that a residential tenant benefits from other services – either included in the rental agreement or in addition to the agreement – that are subject to VAT.

There is no VAT charged on the rent for residential accommodation. However, it is possible that other services are subject to VAT and is either included in the rental agreement. This includes utilities or cooling fees and parking space fees.

A transfer fee is payable if you transfer your property to someone else. It is an administrative charge levied by the primary developer.

You can get a Three-year visa when you purchase a property in Dubai that is:

1.  Completed and handed over to you.
2.  Worth a minimum value of seven hundred and fifty thousand dirhams.

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. 

Typically, developers delay the staggered payment schedule if a property is not completed on time.

While resident expatriates can generally borrow between 70% and 80%, non-residents can generally borrow 50% to 70%. It all depends on the lender, and the project they are lending on.

a) Liberalization of the real estate sector – expats can now own property
b) High tax-free yields on freehold property rental
c) Globalization and its effects on property prices in metropolitan cities worldwide
d) Favourable interest rate environment
e) Mortgages & homeowner finance available
f) Granting of “permanent” residency upon purchase of freehold properties
g) Great Value – Real estate land & apartment valuations are cheap compared to international prices
h) Conducive lifestyle: safe, tax haven, secondary and tertiary home for international buyers
i) Dubai’s robust economic growth p.a.(GDP)
j) Dubai’s robust population growth p.a.
k) Large mid-income population bracket with high disposable income
l) Dubai is the regional entrep么t & tourism center
m) UAE is an open, welcoming & tolerant state with investor-friendly business policies

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.

Can a property purchaser sell his property? 

Most developers allow property owners to re-sell their property; however, some have restrictions on the amount the owner must have paid the developer before re-sale. Developers usually charge owners a transfer fee of 1% to 2% of the value of original list price of the property in order to allow the transfer to a new buyer.

How is a transfer made?

In order to allow the transfer to a new buyer, developers usually require a property owner to sign a transfer letter with the new buyer at the developer’s office. Developers then usually proceed to issue a new property contract with the new buyer.

Does a property purchaser have to be in Dubai to get property transferred?

 No, a power of attorney can be appointed to someone in Dubai who may engage in the transfer formalities (the PoA must to be notarized and authenticated by the UAE Embassy in the property owner’s country of residence).

Is a power of attorney sufficient for the all transactions to be made including transfer? 

Yes, to purchase a property, a notarized POA is sufficient. To sell a property, a notarized POA + authentication by the UAE Embassy is sufficient.

Service charges, AC and sinking fund is charged per sq. ft. with rates starting from AED 2 per sq. ft. As for parking, it is paid yearly per bay/slot and starts from around AED 1,000.

Can all family members get a UAE residence visa: i.e. Father, Mother, Father, and children under 18 and unmarried daughters? 

Yes. Expatriate employees or employers can obtain a residency visa There are three ways they can change their status from an entry permit holder to a resident visa holder: official employment, company registration, and real estate acquisition.

Once they have a valid residency permit, male residents can sponsor his spouse and children (under 18 years of age) and any unmarried daughters above the age of 18 years. 

Expatriate employers are issued residency visa for three years, while expatriate employees are issued residency visa for 1 to 2 years, depending on their labor contract. 

The UAE cabinet granted long-term visas to certain expatriates such as entrepreneurs, specialized talents and researchers in the knowledge and science field, and outstanding students, with some conditions. 

Find out more here.

Who issues the residence visa and is it guaranteed?

The Government of Dubai issues it and it is guaranteed as long as the property purchaser owns the property, clears all security and medical tests, and is not rejected by the Ministry of Labor and Social Affairs.

If the property purchaser is not living in Dubai but plans to in the future, what will be the procedure to obtain a residence visa? 

The type of residency visa you’re entitled to depends on the value of the purchased property. Once the property purchaser buys a property, he/she is automatically entitled to obtain a residence visa.

Applying for residency visa can be done either on the website of Federal Authority for Identity and Citizenship (ICA), which is the eChannel for citizenship and residency, or the General Directorate of Residency and Foreigners Affairs (GDRFA), which works under the UAE ministry.

If the property purchaser is not living in Dubai can they get a visa in a different person’s name such as their employees or other family members etc.?

No, only the principal property purchaser gets a residence visa but may sponsor his/her dependents.

The primary real estate market consists of new properties, which include new launches and ongoing projects from the developer.

A property before a structure has been constructed upon it; Under construction property.

Dubai Land Department – DLD is a government agency that provides necessary legislation, organisation, and services for any real estate transactions in Dubai.

Rent Increase Calculator is available in the website of Land Department, it will provide you the current market price and the percentage of increase that can be applied in the Annual Rent of the property. You can go to this link:   http://www.dubailand.gov.ae/english/Tanzeem/Rentals/Rental_Increase_Calculator.aspx

Buying an off plan property means you commit to purchasing a property either before or during the construction phase. It has significant advantages: 
 

Plan and save money – It allows investors to get a purchase at the earliest and lowest possible price and buyers to pick the very best apartments in a specific development. In return, there’s a high chance of gaining the maximum return on their investment.
 

Sell before the completion date – Investors can sell off their off-plan property contracts prior to the  completion of the projects and at a considerable profit (assuming the market is well-performed and  proved popular.
 

Lower up Front Costs – Off plan property payment plans can and do vary from different types of developers in Dubai. Some of the developers only require a 10% down payment and the rest linked to constructions the required expenditure is relatively low

Real Estate Regulatory Agency (RERA) is the regulatory arm of DLD that regulates the real estate sector in Dubai. It handles the relationship between all contracting parties and organizes the properties’ exchange process. 

Oqood, which loosely translates to ‘contracts’ in Arabic, is an online service provided to the developers by Emirates Real Estate Solutions (ERES), with an aim of easing the registration process for property buyers and developers. 

It can if it is registered within the specified areas for foreign ownership with obtaining  license for Jafza, Jebel Ali Free Zone.

Freehold means outright ownership of the property. While leasehold, it means the holding of property by lease for a period of more than 10 years up to 99 years and can’t be purchased outright.

Yes, you can sell off plan property before the completion date in Dubai.

There are plenty of reasons why it’s a good investment. Dubai has 0% income tax on capital appreciation and rental yields and has among the world’s highest rental yields, with an average of 7-10%. Its properties have extra luxury space per square foot compared to other markets like New York, Sydney, London and Paris. With US $1million, the amount of internal square metres one could buy is 138, compared to other cities like Hong Kong, Mumbai and Berlin. Additionally, the city’s properties also includes interest rates between 3-5% with repayments that can last till 25 years.

The first step is to contact the developer and find out how much must be paid off of the property in order to obtain a sale No Objection Certificate (NOC). The exact percentage or figure is usually somewhere around 30-40% but will vary for different developers in Dubai. 

The new homebuyer pays the seller an equal amount to what they’ve paid off to the developer (+/- any difference agreed on). Then the new buyer will take over the existing payment plan of the off plan property and pay all future due installments directly to the developer.

The emirate’s RERA has introduced numerous measures that needs to be met by developers to make sure the off plan project is completed. Of those measure, the developer must own 100% of the land belonging to the project. Additionally, they must either deposit 20% in escrow account, make a down payment of 20% as bank guarantee, or at least 20% construction completion before selling the off plan property. The regulatory arm of Dubai Land Department than requests contractors to submit a 10% performance guarantee.

It’s crucial that buyers do through research and advise looking the developer’s track record as well as reputation. Make sure the developer, project and project’s Escrow account are all registered in the Dubai Land Department’s Real Estate Regulatory Arm (RERA).

Dubai offers a wide variety of areas to invest and there are many reasons why should you invest. The top areas to in Dubai are MBR City, Business Bay, Dubai Creek, Dubai land, and South Dubai in the city.