Frequently Asked Questions

Dubai’s real estate market offers higher rental yields compared to many mature markets, ranging from 5% to 9%. The affordability of luxury real estate, coupled with the absence of stamp duty and property taxes, makes Dubai an attractive location for ownership. Initiatives such as the reduction in the minimum required amount for a residence visa in September 2021 further enhance its appeal.

Furthermore, minimum investments of AED 750K qualify as an approval factor for an investor visa, while AED 2,000,000 (USD 545K) provides eligibility for a UAE Golden Visa.

Nationals of other countries can indeed purchase real estate in Dubai, although they are limited to areas designated as ‘freehold.’ This privilege extends to both non-residents and expatriates, allowing them to acquire property in these freehold zones with ownership rights granted as either freehold, without restrictions, or leasehold for up to 99 years. The Dubai Land Department issues title deeds, and there are no age limitations on property ownership in the emirate. Popular freehold areas include Downtown Dubai, Business Bay, Dubai Harbor, Damac Hills, Palm Jumeirah Island, and others.

Dubai’s property market caters to diverse budgets, ranging from family-friendly communities like Jumeirah Lake Towers and Jumeirah Village Circle, up to more luxurious options like Damac Hills, Damac Lagoons and Dubai Harbor. For Off-plan options, Developers often present attractive post-handover payment plans. Location, surroundings, infrastructure are also important factors to consider.

Commencing real estate investment in Dubai involves identifying the investment purpose, whether for personal residence, renting, or resale. Location and nearby amenities significantly influence property prices. Additionally, investors should be aware of the 4% property transfer fee, divided equally between the buyer and seller. Other expenses include insurance, an NOC fee, an annual maintenance fee, and a real estate agent’s commission (typically 2% of the property purchase price).

Choosing the perfect area to buy an apartment in Dubai involves considering factors such as infrastructure, public transport links, healthcare, academic facilities, and more. Prominent family-friendly communities like Dubai Hills Estate, Al Barari, and DAMAC Hills offer villas with spacious surroundings and communal amenities like gyms, gardens, swimming pools, BBQ areas, and multi-sports courts. Investing in a villa in Dubai is an appealing option, providing flexibility for personal residence, renting, or future resale. In 2022, Dubai’s property market has witnessed a significant increased demand for luxury townhouses and villas, which remains strong up to this day.

Investing in Dubai’s real estate market often involves securing long-term income through becoming a landlord. Residential real estate can yield an impressive 5-12% ROI, with apartments typically offering higher returns than townhouses and villas. Landlords bear responsibilities such as maintenance, repairs, and restoration but can opt for property management services. Rental income is subject to a 5% VAT tax and annual maintenance fees payable to the Dubai Land Department.

Completing a typical property transaction in Dubai takes approximately a month, starting from the signing of the sale agreement between the buyer and seller.

Given the UAE’s tax-free status, property owners are exempt from property taxes. However, annual maintenance and service charges are applicable, with payment frequencies ranging from one to four times a year, depending on the property.

While a 5% Value-Added Tax (VAT) applies to sales of commercial property across UAE, it does not extend to sales or leases of residential property and leases of commercial property.

Off-plan property in Dubai refers to property under construction and is a favored option for end users and investors. It offers a lower purchase price than ready-to-move-in units, allowing for potential resale before completion and gaining higher capital appreciation. Developers often require a 5-10% down payment, providing full ownership, and offer flexible payment plans. Purchasing off-plan also ensures brand-new properties with the latest technology, design, and lifestyle features.

Buying off-plan property in Dubai is accessible to any buyer without the need for a visa or Emirates ID, requiring only a passport copy. It is advisable to engage a real estate agent for detailed project information. Reservation involves signing the Sale and Purchase Agreement (SPA) and paying a deposit fee. Payment schedules vary, with a 4% Fee and Oqood registration fee due within 30 days. Final payments are made upon handover.

Freehold property in Dubai grants ownership of both the property and the land it occupies, allowing owners to keep, lease, or sell as desired. This ownership model aims to encourage foreign investments.

Since 2006, the Dubai government has introduced incentives allowing complete foreign ownership. Foreigners can own properties in designated free zones, such as Al Furjan and Palm Jumeirah, enjoying full ownership rights.

Selling property in Dubai is simplified with the assistance of a qualified real estate agent. The process involves signing a ‘FORM A’ to mandate brokering and marketing, leading to the property being advertised online and offline. Upon finding a buyer, a Memorandum of Understanding (FORM F) is signed, and an NOC letter from the developer is obtained. The final step includes ownership transfer, requiring the MOU, NOC, title deed copy, seller’s cheque, 4% Dubai Land Department fee, and original passport copy.

While legal, selling off-plan property in Dubai involves developer-imposed restrictions, often allowing resales after a specific payment percentage.

Yes, you can rent out your property in Dubai, and rental income depends on property type, location, and service charges. Average net income, accounting for service charges, ranges from 5% to 10% annually, with more expensive properties attracting a lower percentage of rental income.

While it is possible to close real estate deals without a real estate agent in UAE, it is highly recommended to engage one for their market expertise and negotiation skills. Real estate agents streamline the process, reducing the risk of mistakes, delays, and biased opinions.

The official currency of Dubai and the UAE is the UAE Dirham (AED). Transactions are conducted in Dirhams, which is pegged against the US dollar with a fixed exchange rate of 1 USD = 3.67 AED, ensuring stability and reliability in currency exchange.