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Purchase a Property in Dubai

Purchase a Property in Dubai

Updated on Monday 15th April 2019

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The real estate market in Dubai is developing rapidly and, as this Emirate is becoming a more popular business destination, purchasing a property in Dubai seems like a good investment choice for many foreigners looking to do business in this area. Either for personal use or for renting purposes, if you want to buy a house in Dubai, you should first take a good look at the real estate market and the available offers. Our lawyers in Dubai can assist you throughout the purchase process and help you conclude the necessary purchase agreements in Dubai.
 

Can foreigners purchase properties in Dubai?

 
Yes, regardless of their nationality, foreigners in Dubai can buy properties, can rent or sell houses in compliance with the local laws.
 

How can I buy a property in Dubai?

Before purchasing a property, it is best to check if that developer is approved by the Real Estate Regulatory Agency. This can be done on their website. As a buyer, you will need to pay close attention to some important aspects, like the final price of the property, if the property is finished or if there will be any additional construction works. The first step when purchasing a property in Dubai is to come to a verbal agreement with the seller. After the initial details have been negotiated, the buyer and the seller draw up a formal sales contract. Usually, an initial deposit is also made during this stage. Foreign investors should also know that buyer must be at least 21 years old.  It is good to know that the Real Estate Regulatory Agency in Dubai is the one responsible for approving registered developers in Dubai.
 

What is a resale property in Dubai?

Foreigners have the option to choose between several types of properties in Dubai, including “resale” properties. This type of property is purchased from a private seller and the two parties usually agree upon a memorandum of understanding that is a document that describes the terms and conditions for the sale. Foreign buyers also have the option to get a mortgage in Dubai. Although mortgage lenders can impose certain strict conditions to allow the approval of a mortgage, foreigners who want to apply for a mortgage in Dubai need to submit the following documents:
 
  • passport copies of the persons who want to buy the property;
  • a proof of residence and the address in Dubai (the permanent residence permit is solicited);
  • an evidence of a regular income for individuals working in Dubai;
  • bank account statements proving the registered incomes in Dubai.

 

Buying freehold properties in Dubai

 
Directed mostly for foreign investors, freehold properties in Dubai are land parcels which can be used for future developments like residential homes or office buildings. Such freehold properties are usually sold by real estate companies in Dubai. We can handle the legal aspects of freehold properties and we can also make the necessary verifications before sealing any contract in this sense.
 

 

How much does it take to buy a property in Dubai?

 
Property transactions in Dubai take approximately 30 days from the time the sale contract has been signed by both parts. The legal aspects of a property purchase can be explained by our team of attorneys in Dubai.
 

Do I need a deposit when buying a property in Dubai?

Yes, in most cases, it is mandatory to deposit at least 10% of the property price in a bank account in Dubai. This is normally a guarantee that the property transaction is established, and the terms will be respected as agreed by a contract in this sense.
 

Taxes related to property purchases in Dubai

One of the greatest advantages of buying real estate in Dubai, whether for residential or commercial purposes, is that there are no taxes related to the transaction itself. One must only pay the property transfer fee and the stamp duty. The transfer fee must be paid when registering the property with the Dubai Land Department and is set at 4% of the purchase price, while the stamp duty usually ranges between 1 and 7 percent of the buying price. Please bear in mind that the charge for the real estate agents' services is set at 2% rate of the property price.

 Our law firm in Dubai can help you with real estate due diligence in Dubai and other legal services. Please contact our Dubai attorneys for more information.