Dubai has become one of the most developed cities in the Middle East. The luxurious city also has the biggest real estate market in the area, a market that encompasses all kinds of options from residential properties to retail spaces and storage.
Purchasing a property in Dubai sounds like a great idea; the city has so much potential. Whether you want to invest in that property or simply looking for a place to live, Dubai has something for everyone.
But the process of purchasing a property can be confusing if you have no experience with real estate in Dubai. So, in this article, we will be answering questions that people commonly ask when buying a property in Dubai for the first time.
I’m an Expat, Can I Buy a Property in Dubai?
A while ago, only those how owned Emirati citizenship were allowed to own properties in the country. But in 2006 things changed, when the Emirati government passed regulation NO.3. With this regulation, the government determined areas where non-citizens can own properties, referring to it as freehold ownership.
Today, freehold areas expanded, allowing non-citizens to purchase properties in Dubai’s most prominent areas including Dubai Marina, Palm Jumeirah, JLT, and others.
Do I Have to Pay for Something Oher than the Property Cost?
If you are asking about taxes, then no you don’t have to pay taxes since the UAE is a tax-free country. But as a property owner, you will have to pay maintenance fees and service charge payments. These go to the property management company that the owner’s association hired.
When I Invest in a Property, Can I Rent It?
Yes. According to Emirati law regarding the relationships between landlords and tenants, any property owner in the UAE has the right to rent his property. Normally, rental contracts in the country have a 1-year period, with a possibility to extend the contract. And since the UAE is a tax-free country, there are no taxes imposed on any profit you make by renting your property.
Do I Have to Hire a Real Estate Agent to Purchase a Property in Dubai?
No, not necessarily. You see, real estate agents are only meant to facilitate the process; being experts in the market, they will help you find the property that meets your requirements and help you negotiate the price. So, if you think that you have studied Dubai’s real estate market well and know your way around landlords, then you can skip the real estate agent part.
What to Expect After Deciding What Property I Want to Purchase?
Well, after finding the property that will satisfy your needs, you will move to the signing and payment parts. You will meet with the property owner or one of his representatives to sign the purchase agreement.
The agreement will state the deal’s terms and conditions including the price and any additional expenses, responsibilities each party must fulfill, and penalties imposed in case of any breach in the contract. You may also discuss with the property owner terms to include in the agreement.
After signing the agreement, you should expect to pay a deposit which normally would be 10% of the property price.
Following that, the seller will apply for a no-objection certificate (NOC) from the property developer, in order to sell the property. The NOC is essential to transfer the property to you as a buyer and to go through the next step.
Once obtaining the NOC and the property is transferred to you, the time comes to register your new property at Dubai Land Department so it can be under your name.
There are registration and document preparation fees that you will have to pay.
Congrats! You are now a property owner in Dubai.