a.) Is it possible to obtain homeowner finance (mortgaging) for freehold properties?
Indeed, Tamweel, a home finance subsidiary of Nakheel, offers home financing for all Nakheel real estate developments, and Amlak, a home finance subsidiary of Emaar, offers house financing for Emaar projects. Mortgages are also provided by Mashreq Bank. Mortgages are only offered by RAKBank after the project is finished. Additionally, a number of other financial organizations and banks are beginning to provide mortgages. Each institution has different lending requirements. Mortgages on private developers’ freehold developments are not yet available from any financial institution.

b) How can I obtain funding?
Every financial institution has a set of requirements for loans. The buyer of the property must meet the requirements of the financial institution for the loan and submit the required paperwork, which includes, but is not limited to: a copy of the buyer’s passport, one year’s worth of bank statements, the buyer’s credit history, a credit bureau report (such as Equifax, D&B, etc.), a banker’s reference, and a credit card report.

c) At what point does the bank begin to charge interest?
The bank determines this. Interest is typically incurred throughout the building phase and must be paid or cleared by the buyer of the property at the time of unit handover. The buyer of the property will then be required to pay back principal and interest payments for the duration of the loan.

h) Is a mortgage filed with the Lands Department of the Government of Dubai?
It will be registered on each property at the Government of Dubai Lands Department’s Mortgage Section after the buyer’s finance turns into a real estate mortgage.

If a property is not finished on schedule, developers usually postpone the staggered payment schedule.

Non-residents can typically borrow between 60% and 70%, whereas legal expatriates can typically borrow between 70% and 80%. The lender and the project for which they are lending determine everything.

In the event that the buyer defaults, developers have the ability to revoke the property reservation agreement and reclaim the property’s title. In such a scenario, the buyer of the property usually loses 30% of the property value in addition to the installments previously paid.

The developer usually retains the right to terminate the agreement and charges interest at the rate of about 6% if the property buyer fails to make his installment payment within the grace period, which is often 30 days from the date the payment is due.

a) The real estate industry was liberalized, allowing foreigners to own property;

b) High tax-free yields on the rental of freehold properties;

c) Globalization and its effects on property prices in global metropolises;

d) A favorable interest rate environment;

e) Mortgages and homeowner finance are available;

f) The purchase of freehold properties grants “permanent” residency;

h) Convenient 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) A sizable mid-income population with high disposable income;

l) Dubai is the regional hub for tourism and entrepreneurship;

m) The United Arab Emirates is an open, hospitable, and tolerant state with business policies that encourage investment.

Any estate that is “free from hold” of anyone other than the owner is known as freehold property. As a result, the owner of such property is entitled to perpetual free possession and is free to utilize the property however they see fit, as long as they abide by local laws.

The best type of private property ownership is enjoyed by the owner of a real estate freehold title. As the sole proprietor of the land and buildings included in his title, a freeholder is allowed to occupy, use, and enjoy his property in perpetuity, or until he transfers the title to another owner. In the event of his death, his heirs will be entitled to inherit his title.

Usually, an MOU is signed by the potential buyer and seller, in which the buyer pledges to buy the property and the seller pledges to sell it. An initial booking deposit, up to AED 100,000 for villas and apartments, is paid by the buyer to the seller during a purchase transaction.

The buyer forfeits his booking deposit if he cancels the transaction. The booking deposit is refunded if the seller decides to back out of the deal. When the property is transferred to the buyer, the buyer pays the seller the remaining amount.

a) Is it possible for a buyer to sell their property?
Some developers impose restrictions on how much the owner must have paid the developer before reselling, however the majority of developers permit property owners to do so. In order to permit the transfer to a new buyer, developers typically charge owners a transfer fee equal to 1% to 2% of the property’s initial list price.

c) How do you make a transfer?
Developers typically demand a transfer letter to be signed by the property owner and the new buyer at the developer’s office before allowing the transfer to a new buyer. After that, developers typically go ahead and give the new buyer a new property contract.

c) Does a buyer of real estate need to be in Dubai to obtainSome developers impose restrictions on how much the owner must have paid the developer before reselling, however the majority of developers permit property owners to do so. In order to permit the transfer to a new buyer, developers typically charge owners a transfer fee equal to 1% to 2% of the property’s initial list price.

c) How do you make a transfer?
Developers typically demand a transfer letter to be signed by the property owner and the new buyer at the developer’s office before allowing the transfer to a new buyer. After that, developers typically go ahead and give the new buyer a new property contract.

a) Is it possible for a buyer to sell their property?

Rates for service fees, air conditioning, and sinking funds start at AED 2 per square foot. Parking costs start at about AED 1,000 per bay or slot and are paid annually.

This website offers helpful details on servicing fees for properties located throughout Dubai.

The majority of one-bedroom apartments and studios are the same size. While some apartments have balconies, some don’t. The ones on the building’s corners can occasionally be a little larger. Ground floor retail stores come in a range of sizes and prices.

Studios: About 480 square feet in size.
The size of one bedroom is roughly 716 square feet.

Retail spaces range in size from 500 square feet to more.

All that is required for a buyer to buy a freehold home in Dubai is a copy of his passport documents if he is buying from a developer directly in the primary market. The firm’s registration paperwork (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution) must be sent to the developer by the company buying the property.

To buy a property, an individual or business only needs to sign a property reservation contract with the developer. The buyer must register the property at the Government of Dubai Lands Department in order to receive a title deed upon the property’s transfer to them.

The buyer of the property would be in charge of payingThe firm’s registration paperwork (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution) must be sent to the developer by the company buying the property.

To buy a property, an individual or business only needs to sign a property reservation contract with the developer. The buyer must register the property at the Government of Dubai Lands Department in order to receive a title deed upon the property’s transfer to them.

All that is required for a buyer to buy a freehold home in Dubai is a copy of his passport documents if he is buying from a developer directly in the primary market. The firm’s registration paperwork (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution) must be sent to the developer by the company buying the property.

To buy a property, an individual or business only needs to sign a property reservation contract with the developer.

a) What are ongoing installments and payment schedules? Which currency is being used for payment?
Payment Schedules A, B, C, and D are the four ways to make installment payments, and paying more up front will result in a discount. Payment Plan A: 10% reservation fee plus additional payments Payment Plan B: 30% of the reservation fee plus additional payments Payment Plan C: 50% of the reservation fee plus additional payments Payment Schedule D: full payment at the time of booking. The building owner must be paid in AED (UAE Dirhams) for all payments. 3.68 AED = 1 USD (fixed rate). The AED and GBP vary in value. AED 5.56 = 1 GBP as of the report’s date.

b) Which payment method is accepted?
Money order, bankers draft, credit card, or wire transfer (at aWhich currency is being used for payment?
Payment Schedules A, B, C, and D are the four ways to make installment payments, and paying more up front will result in a discount. Payment Plan A: 10% reservation fee plus additional payments

c) Is a receipt provided by the building owner for each payment made?
Indeed.

d) Does the building owner provide the buyer of the property with a monthly statement of accounts?
No, only after an installment is received is a receipt sent.

e) Are late payments subject to a penalty?
Yes, the buyer of the property will be assessed late payment interest at the rate of LIBOR + 4% if he fails to make a payment on time. The Financial Times defines LIBOR as the Emirates Interbank Offer Rate. The seller has the right to cancel the transaction and forfeit up to 30% of the unit’s value if the buyer of the property fails to pay the three installments on time.

f) To whom should the money be sent?
The payment is given in the event that the buyer of the property buys the unit without financing.No, only after an installment is received is a receipt sent.

g) Are late payments subject to a penalty?

a) Can the father, mother, children under the age of 18, and unmarried daughters all obtain a UAE residency visa?

Indeed. Employers or workers abroad may apply for a residence visa. They can switch from having an admission permit to a resident visa in three different ways: through official employment, business registration, or purchasing real estate.Male residents may sponsor their spouse, children under the age of 18, and any unmarried daughters over the age of 18 as long as they have a valid residency visa.

Depending on their labor contract, expatriate employees receive residency visas for one to two years, while employers receive them for three years.

The UAE cabinet issued long-term visas to a number of foreign nationals, includingIndeed. Employers or workers abroad may apply for a residence visa. They can switch from having an admission permit to a resident visa in three different ways: through official employment, business registration, or purchasing real estate.Male residents may sponsor their spouse, children under the age of 18, and any unmarried daughters over the age of 18 as long as they have a valid residency visa.

Depending on their labor contract, expatriate employees receive residency visas for one to two years, while employers receive them for three years.

c) What is the process for obtaining a resident visa if the buyer of the property does not already reside in Dubai but intends to do so in the future?

The value of the property you bought determines the kind of resident visa to which you are entitled. Upon purchasing a home, the buyer is immediately eligible to receive a resident visa.

One can apply for a residency visa through the General Directorate of Residency and Foreigners Affairs (GDRFA), which is part of the UAE government, or the Federal Authority for Identity and Citizenship (ICA), which is the eChannel for citizenship and residency.

d) Can the buyer of the property obtain a visa under someone else’s name, such as their staff, if they do not reside in Dubai?The value of the property you bought determines the kind of resident visa to which you are entitled. Upon purchasing a home, the buyer is immediately eligible to receive a resident visa.

One can apply for a residency visa through the General Directorate of Residency and Foreigners Affairs (GDRFA), which is part of the UAE government, or the Federal Authority for Identity and Citizenship (ICA), which is the eChannel for citizenship and residency.

a) What is the anticipated average yearly rental price for units after completion?
Studios: usually cost between AED 28,000 and AED 35,000.
Usually, one bedroom costs between AED 35,000 and AED 60,000.

Stores: vary, but usually fall between AED 50,000 and AED 80,000.

On the value of their property, property owners can anticipate rental yields of 6% to 10% annually. About 10% to 12% of the annual rental sum is what the rental agencies charge to manage the property on the owner’s behalf.
The aforementioned are only suggestions and could change based on the project’s location and level of excellence.

b) How much does the rental agent charge for upkeep, repairs, and care of the property?
The fees that the rental agent charges for upkeep, repairs, and care are typically real expenses.Studios: usually cost between AED 28,000 and AED 35,000.
Usually, one bedroom costs between AED 35,000 and AED 60,000.

Stores: vary, but usually fall between AED 50,000 and AED 80,000.

On the value of their property, property owners can anticipate rental yields of 6% to 10% annually. About 10% to 12% of the annual rental sum is what the rental agencies charge to manage the property on the owner’s behalf.

a) What fees do sales agents often charge if the seller wishes to sell his property?
1% to 2% of the value of the property.

b) How much does it cost to move between family members?
The same quantity as before.

c) Is it necessary for the buyer and seller to be in Dubai simultaneously in order to transfer a property?
No, provided that the power of attorneys are duly appointed and notarized.

d) How long is the residence visa valid following a sale?
typically 30 to 45 days following the sale of the property to the new buyer, at which point it is cancelled.

New properties, including developer debuts and continuing developments, make up the main real estate market.

Yes, a tenant may end the lease as long as they provide the landlord two (2) months’ notice, pay two (2) months’ rent as cancellation from the day they leave the property, and make sure all utility bills are paid.

No, the property’s utilities cannot be turned off by the landlord.

Individual tenants must have a copy of their valid passport and residence visa; they must present the property broker with the original copies of these documents.

A current trade license, a copy of the general manager’s passport (if he is signing the agreement), and the occupant’s valid passport are required for corporate tenants.

In the event of a mortgage, the landlord must furnish the title deed, a copy of their valid passport and residence visa, a bank statement, a copy of their mortgage, and a copy of their DEWA account.

The tenant must pay the agreed-upon annual rent, which is contingent on the number of checks that were agreed upon by both parties, as well as the security deposit, broker commission, payment for DEWA and Empower (if applicable), and Ejari registration.

Deposit for Security 5% of the annual rent, which is paid by the tenant in advance and set aside in case the depositor breaches a real estate lease’s contractual duty to safeguard the landlord. Rent loss, property damage, misplaced security keys, and non-wear and tear repairs are all covered.

Yes, a tenant may employ a third-party check as long as they present a Letter of Indemnity from the third party and, in the case of a company check, a passport or trade license.

Indeed, it is explicitly stated in the law that unless the lease is registered with Ejari, the Rent Committee would not entertain any claims.

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

You can find the current market price and the percentage increase that can be applied to the property’s annual rent using the Rent Increase Calculator on the Land Department’s website. The following link is available to you: http://www.dubailand.gov.ae/english/Tanzeem/Rentals/Rental_Increase_Calculator.aspx

Required documents to initiate Ejari registration include: 1. Copy of the title deed, 2. Copy of the tenancy contract, 3. Copy of the landlord’s passport, 4. Copy of the tenant’s passport and visa page. RERA charges per registration of tenancy contract is AED 160.00. Once the documents are submitted and the payment is made, registration will usually be completed at the same time.

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.

If the rent of the property is AED 100,000 or less, than the property management fee is AED 5,000. On the contrary, if it’s greater than AED 100,000 then the property management fee is 5% of the rent.

Rent on residential properties is exempt from VAT. If its leased out on a short-term basis to non-residents, then it falls under the commercial category. 

If the occupant has no Emirates ID and is leasing less than six months, then it would be deemed commercial from a VAT perspective.

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’s the purchasing and selling of property before the property is constructed and completed. Only the plan for it exists. 

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

It’s free of charge. Ejari is a system that is governed by RERA to make registration of rental / lease agreements easy and accessible to Owners and Real Estate Management Companies of various categories.

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 city has grown exponentially throughout the years and continues to maintain its status for investment among foreigners and nationals. Dubai’s properties offer best long-term returns averaging 7-10% in several areas. Also, Dubai has strong regularity authority and draws interest in investments for its open and free system which attracts Foreign Direct Investment, giving it plenty of reasons to invest in local properties.