- Maximum Budget
- Property type you require (Apartment, Villa, Townhouse etc.)
- No. of bedrooms
- Preferred Views (Golf course, Marina, Sea, Garden etc.)
- Ability to make Payments
- Financing requirements
- Need to buy a property ready for possession or a property that will be ready within 1-3 years
- Purpose of buying (investment, personal living, holiday home etc.)
- Carefully read through the below Q & A’s related to buying property in Dubai.
In May 2002 the Dubai Crown Prince, General Sheikh Mohammed bin Rashid Al Maktoum, issued a decree allowing Non-resident and resident expatriates from all countries to buy property in Dubai within designated freehold developments.
Freehold or Leasehold Ownership?
Majority of the properties in Dubai are sold on absolute Freehold basis. The developer confirms your Freehold Ownership in its Sales & Purchase Agreement.
Under the sponsorship of the primary property developer Dubai Government issues a 3 years renewable residency visa to a Freehold property buyer. The buyer is able to sponsor his/her immediate family (wife, son up to the age of 18 and daughter until marriage). Marvel Homes undertakes the complete processing of residency visas for its customers.
Residency Visa costs?
Sponsorship charges of approximately Dhs. 5000 for the property owner. Immigration charges of approximately Dhs.1000 per person for the immediate family.
How long does the Visa process take?
Approximately 10 – 12 working days for the visa to be issued. Visa Stamping: Approximately 5 – 7 working days for the passport to be stamped after the required documents are submitted once the Medical process is complete.
Buying directly from the Developer?
Buying directly from the developer involves making a first hand purchase and paying the price quoted by the developer. Should a property be sold out by a developer then the property can be purchased from the property resale market.
Buying from the property resale market?
Buying in the resale market requires a premium (profit) to be paid to the seller in addition to the original price plus a transfer fee has to be paid to the developer.
Do I need to appoint a lawyer to buy property in Dubai?
Appointing a lawyer is not necessary.
Can I re-sell my property at any stage?
Generally properties in Dubai can be resold at any stage by assigning the Sales & Purchase Agreement to a new buyer however a limited number of developers restrict property resale until 30% of the total price has been paid.
A transfer fee is payable to the developer for transferring the name of a property from the current owner to the new buyer. Typically a transfer fee of 1-3% of the original developer’s price is payable.
Payment Terms for Off Plan properties?
Typically Down payment of 10-20% of the property value has to be paid upon booking a property. The balance payment is paid in installments at fixed intervals during the completion period of the property.
Payment Terms for Ready properties?
100% payment is required for properties ready to move in.
Property Maintenance fee?
The annual maintenance fee for properties in Dubai ranges between Dhs.5 per sq.ft. to Dhs.12 per sq.ft. For example if the maintenance fee of a 3 bedroom apartment is Dhs.5 per sq.ft. and total area of the apartment is 2000 sq.ft then the annual maintenance fee will be Dhs.10,000. The fee remains fixed for the first three years after which the Homeowners association is formed. The fee includes maintenance and cleaning of common areas such as swimming pool, landscaping, corridors, parking, garbage collection and security services.
Standard facilities within freehold residential buildings and communities in Dubai?
Generally residential buildings in Dubai have Swimming Pool – Gymnasium – Children’s play area - Car parking – 24 hours security - Internet Access- High speed elevators. Within residential communities clubhouse facilities also include tennis courts, squash courts and golf course.
Renting your Property?
After the property is handed over you’re free to rent it out.
Expected Rental Return?
Dubai is a growing economy with an influx of people. The number of people in Dubai are growing at a faster rate than the no. of residential units therefore there is a shortage of accommodation which has resulted in high rental returns of 8-10% of the property value. By 2008 the supply of accommodation will level with the demand, this will result in rental returns of 6%-8%.
Appreciation in Dubai properties?
Property buyers in Dubai have experienced sharp rise in the value of their properties over the last two years. Generally prices have appreciated by 15-35% and for certain exclusive properties by 50-80%. The prices are expected to continue rising owing to positive economic indicators, infrastructure development and growth in tourism.