Procedure for buying in Dubai

When planning to buy property in Dubai it’s important to understand the market and the differences in prices between the locations. For example, an apartment in Downtown Dubai or a villa in Palm Jumeirah is likely to be more expensive than a townhouse in Dubai South.

Therefore, the first thing to do is visit Dubai to look for the locations based on your lifestyle. For example, do you want to be near the business district, on the beach or in a complex with a shared pool? You should also consider transport as areas further from the city don’t always have a public transport system, so you will need a car.

Once you’ve done your search it’s time to narrow down the location where you want to buy a property in Dubai.

Dubai is split into several districts, each with their own benefits:

The heart of the city, known for the iconic Burj Khalifa, luxury shopping and offering lots of stylish restaurants to choose from.

An artificial island shaped like a palm tree with luxurious villas and apartments with stunning sea views.

A modern waterfront district with high-rise residential apartments, upscale restaurants and a lively atmosphere.

A family-friendly community that offers golf courses, green spaces, schools and healthcare centres.

Another district that’s popular with families, with a mix of apartments, villas, and townhouses.

A key business area with high-rise apartments – perfect as an investment to rent out to professionals.

There are several options when you want to buy Dubai property – what you choose will depend on your lifestyle and budget.

• Apartment – from studio flats to spacious penthouses with amazing views across the Dubai skyline. You often get the use of amenities such as a swimming pool or a gym which you are likely to pay for annually.
• Villa – often in gated communities in Dubai, with or without a swimming pool and usually having a garden.
• Townhouse – an alternative to an apartment, located on two floors and more affordable than a villa.

The table below shows the difference between the average property price per square metre in the centre of Dubai and on the outskirts.

The price of property in Dubai varies greatly depending on the location and type of building. For example, you could pay anything from AED 330,500 (£68,200) for a one-bedroom studio apartment to several million for a penthouse or villa.

Before you can view properties you should be aware of how much your budget is. You may require a mortgage, in which case you will need to talk to your bank or a mortgage broker to see if you are eligible.

You will be asked to provide:

• Valid passport
• Visa
• Proof of income
• A utility bill
• Credit reports

You are also likely to be asked to prove you have the funds for the deposit, which is 25% of the purchase price for expatriates. An advantage of buying property in Dubai is that you can apply for a home loan as a non-resident. This is done either through a bank or property developer. This is particular good if you want to invest in Dubai property to rent out and profit from the tax-free income.

Once you’ve found your dream property in Dubai and agreed on a sale price the formalities will begin.

• You first sign a sales contract depending on the type of property, that details the terms and conditions such as the price, amount of deposit and completion date. This is a legally binding document:
  – Existing properties – a MOU (Memorandum of Understanding) between the owner and the buyer.
  – New properties – the buyer and property developer sign an SPA (Sales and Purchase Agreement)
• Next you will have to employ a lawyer, who will check the property’s legal status.
• Your lawyer will also apply for an NOC (no objection certificate) from the seller that confirms that there are no outstanding debts on the property and that the title deeds are free from any legal disputes.
• Before the sale can proceed the DLD (Dubai Land Department) will value the property and calculate the transfer fee.
• The next step is for the buyer and the seller to visit the DLD to transfer the title deed. The finance is also transferred at this stage and the purchaser becomes the official owner.
• The sale must also be registered with the DLD as proof of ownership.

Dubai is known for its tax advantages. In terms of property, there are no capital gains, wealth or inheritance taxes to pay.

Buying property in Dubai is usually uncomplicated for foreigners as the city welcomes investment from abroad.

Whilst you do need to apply for a resident’s visa to live in Dubai, residency is not essential to buy property in Dubai, unlike in many other countries. This removes a lot of the pressure of trying to get residency at the same time as buying a home in Dubai.

It also means you could buy an investment property in Dubai if you don´t want to live there permanently.

If you intend to purchase property to make a profit you should consider where to buy investment property in Dubai based on rental income. This means analysing rental prices in different locations so you can set a competitive price.

Combined with the tax advantages, buying a property in Dubai and living in this dynamic city is a fantastic experience.

Our iad Overseas property consultants are here to make buying a property in Dubai as easy as possible for you. Contact us for more advice and information.