FAQ

• There are no transfer fees.
• There is no premium to pay.
• There is a lower initial payment.
• The payment schedule is spread over the period of the build.
• The initial deposit may need to be paid within 48 hours to secure the unit.

2. You can also buy a property from somebody who has already bought from a developer; this is referred to normally as a secondary purchase.

• There is usually a 2% (of purchase price) transfer fee to pay.
• There are fewer payments to be made.
• There is a greater initial payment required.
• The development is usually closer to completion.

Expatriates can own property on 99-year lease and freehold only in designated areas.

Bylaws will be issued to determine locations of freeholds as well as registration and transfer fees, which are currently 2% of the property value.

Where Emaar, Nakheel or Dubai Holdings are the master developer then properties will be sold freehold.

Where they are not, then properties will be sold on a 99 year renewable lease with a $1 fee to renew expected.

Annual service charges for common areas will be about 5Dhs per sq ft.

Currently most properties are being let on a 12 months basis. Agents normally charge 10% of the annual rental value for management fees.

Agents normally charge 5% of the annual rental value for letting fees. Service charges are payable to the Maintenance Company for your development, these vary but another 5% of rental income should be set aside for these fees on average.

A community charge may be payable on some properties when completed.

The main purchaser is allowed to apply for a 3 year residency permit when purchasing certain properties. Not all properties have this eligibility and hence clarification should be sought before purchase.

The main purchaser may re-apply for residency every 3 years indefinitely as long as the applicant is still a property owner and has not breached any Dubai regulations.

The cost of a residency application is about 3000 Dhs.

The main purchaser may then sponsor the rest of his family.

The number of bedrooms in the property will determine how many resident permits may be allowed.

Properties may be purchased jointly by a husband or wife but a main purchaser must be designated and the principle purchaser only will be allowed to apply for the residency visa.

Once the principle purchaser has a residency visa then he/she will be allowed to sponsor other immediate family members. They will not be allowed to sponsor friends or partners.

Local laws do not allow women to inherit from their husbands or their fathers in the event of somebody dying intestate (without a will). A notary or a solicitor will easily be able to advise on the procedure for avoiding such an occurrence.

The Process of buying a property in Dubai
In order to reserve your property with a developer or owner 5,000 or 10,000 AED deposit is normally required to secure your unit until your first payment (minus the deposit) is sent together with the relevant documentation to Dubai.

Throughout the course of your property purchase you will be required to transfer funds from your country to Dubai and send via post/courier documents required to complete your transaction.

A reservation agreement with the developer/owner is issued within 30 days to include all conditions and payment schedules. The full contract is normally issued by the developer after receipt of the 2nd installment. This can however vary depending on the developer.

The developer will fit your property with kitchen, bathroom.
White goods are not normally included by the developer.

For this figure the solicitor will correspond by email or telephone with you and will advise you of the different requirements necessary to complete your purchase.

Once you have purchased your property there may be a need to pay a transfer fee to the developer (usually 2%). This is dependent on whether the property is being purchased directly from a developer (no charge) or if it is being purchased from a private owner/investor.
Example based on a 1,000,000 property purchase:

Cost of property 1,000,000
2% Transfer Fee 20,000 (Not in every case)

The government's decision to diversify from a trade-based but oil-reliant economy to one that is service and tourism-oriented has made real estate more valuable. Corporate office enclaves on Sheikh Zayed Road were developed to shift Dubai's traditional business area from the Dubai creek to the western parts of the city. Dubai's land-reclamation projects, the three Palm Islands of Jumeira, Jebel Ali and Deira; The World archipelago; and the Dubai Waterfront, will be the largest man-made offshore structures in the world, housing villas, hotels, shops and holiday resorts.

Real estate investments in Dubai now hover around Dh165 billion, up froj to the property law that was launched in March, 2006. Property experts opine that the sector’s contribution to the country’s GDP per annum will be 35 percent for the next five years. The law is expected to go some way to resolving the problem of foreign nationals assuming ownership of land out the pre-designated areas with the help of UAE or GCC nationals.