How do I buy a property in Dubai?

Whether they are charmed by the idea of leading an extravagant lifestyle or the temptation to live in a tax-free environment, moving to Dubai is an option that more and more people from all over the world are taking up. calculation.

Thanks to the many malls and gorgeous beaches, the thousands of shops and restaurants, the many activities to do in Dubai, from surfing the dunes to skiing on the largest inland slope, people from all over the world believes that there are many advantages to immigrating to the city located in the Middle East.

So, if you are thinking of investing, or simply want to move, whether you want a new job, start a business, or simply enjoy life in Dubai, buy a property in this cosmopolitan metropolis is a good idea that can easily become a reality thanks to the Freehold Law of 2002, which allows foreigners to buy property without regulations or special permits. Moreover, they are allowed to sell or rent their property at any time without special regulations. At the same time, taking into account that 70% of Dubai’s population consists of expats, then it is not at all unusual for foreigners to buy land or houses.

Regardless of the reasons why you are thinking of buying a property in Dubai, we suggest you discover below a guide on how you can become the owner of an apartment or a property in the city of the United Arab Emirates.

How is the real estate market in Dubai?

Last year in 2021, Dubai saw no fewer than 61,241 sales worth $41.1 billion, making it the best year in terms of transactions since 2013 and the highest in 2009, according to listings portal Property Finder.

Can foreign nationals purchase property in Dubai?

Yes, since 2002, since the law was changed, foreigners can buy, sell or rent property in Dubai without special regulations or permits.

What are the costs to purchase different properties in Dubai?

Once you have considered the idea of purchasing an apartment, house or other property in Dubai, it is important to know what the prices are. Thus, we propose you to discover below some estimated prices for different properties in Dubai, in different neighborhoods.

The prices listed above are estimates. It is important to keep in mind, however, that these may vary depending on the area of the apartments, the neighborhood, the facilities, the maintenance fees, but also the year in which the building was built. Moreover, sometimes the prices can vary by around 500,000 AED for a villa or apartment of the same size. CyDubai company can even offer you opportunities from customers at a much better price, with up to 30% discount compared to the market price.

How can I find a property in Dubai?

Foreigners can purchase three types of property, and each of them is correlated with a different type of land or house, namely:

• Freehold properties

They are usually highly desired by people looking to invest in Dubai, as once purchased, they are 100 percent yours. They can be sold, rented or bequeathed. Typically, these types of properties are located in undeveloped areas. If you intend to buy a freehold property, however, you will need to purchase it from a property developer approved by the emirate’s government.

• Usufruct properties

Another type of ownership is usufruct, described, in other words, by a long-term lease. In this case, the property belongs entirely to you, but you have no right to destroy it. These “fences” can be valid for a period of 10-100 years, depending on the property you are purchasing, whether we are talking about commercial space or residential property, as well as your negotiations.

• Common properties

The last type of property that can be purchased in Dubai is the shared property, which is similar to condominiums in other countries. In this case, you can buy, sell, rent or bequeath the property just like a freehold, but the owners are required to pay some maintenance fees for the building and its common areas, which are usually owned by the developer.

What are the steps to purchase property in Dubai as a foreigner?

So, if you have decided to buy a property in Dubai, here are the steps you need to take afterwards:

• determine what type of property you want to purchase – an apartment or a house, a plot of land or a commercial space, and these can be from the developer with a completion period of up to 3 years and with payment in installments or in already existing blocks, with full payment to the seller.
• enlist the help of CyDubai to advise you throughout this process.
• make sure you are eligible to purchase a property: you must have the right to live in Dubai and you must have a stable salary.
• choose the property pay the advance in the case of new projects.
• obtain a mortgage or home loan from a reputable financial institution. We mention that you can apply for these loans only for homes already in use or completed, not for new projects with a deadline of completion in 2-3 years.
• get the papers
• pay the land registry tax

What kind of taxes or fees do I have to pay?

Once you have decided that you want to buy a property in Dubai, you must also consider the taxes or duties that you have to pay during the purchase process.

• transfer fee to Dubai Land Department – 4% of property value + AED 540 administration fee AbuDhabi
• transfer fee – 1-2%
• registration fees – AED 2000 for properties below AED 500,000
• registration fee – AED 4000 for properties above AED 500 000
• mortgage registration fee – 0.25 of the loan + a fee of AED 10
• mortgage processing fee – up to 1 percent of the loan amount
• real estate agency fee – 2% of the purchase fee
• transfer fee where applicable – AED 6-10,000 appraisal fee – AED 2,500 – 3,000
• Oqood tax, applicable to off-plan properties – 4% of the purchase price
• down payment – 25% of the cost of the property

So, whether you are buying a property in Dubai to live in, or simply want to invest, you need to keep in mind that this city is a true tax haven. More precisely, when you purchase a property in Dubai you will have to pay a one-time fee for the land registry. This is 4 percent of the sales price of the new property, and can sometimes be split between the buyer and seller. This tax is paid to the land department on the day the property transfer takes place, and there are no other taxes or fees thereafter, which is why people from all over the world choose to invest in real estate in Dubai. All these things CyDubai can do for its clients without any more hassle.

How can I pay for a property in Dubai?

Buying a property in Dubai is a simple procedure, especially if you call on CyDubai to take care of all the formalities for you. Regarding its payment, there are several options, namely:

• whole payment
• payment in installments, until handing over the property
• payment in installments to the developer, after handing over the property
• payment by mortgage loan, in which case the amount granted is up to 50% for non-residents and 80% for residents

What should I do after I have chosen the property I want to buy?

Once you have chosen the property you want to buy, you must consider the following steps:

• unit reservation, which is done with the payment of AED 36,000 – 360,000, depending on the value of the property. Payment can be made in cash, by bank transfer or even in cryptocurrencies.
• submission of documents for drawing up the sales-purchase contract: passport and contact details.
• signing the OTP (Option to Purchase), which is a legal agreement between the buyer and the seller for the purchase of a property or the equivalent of the pre-contract with us. In this case, the buyer pays a fee and is granted the rights to purchase the property for three weeks. If he does not move forward with the purchase process, the seller can withdraw from the agreement.
• payment of the first installment and the fee of 4% of the amount, which is the property registration fee in the Dubai Land Department. This can sometimes be borne by the developer or split between the buyer and the seller.
• drawing up the SPA “Sales and purchase agreement”, i.e. the sale-purchase agreement, a process that can last up to three months
• issuance of the OQOOD, i.e. the provisional title deed
• payment of the property according to the previously established plan
• the handing over of the keys, which takes place after the verification and rectification of any errors procedure has been completed, but also the handing over of the final property title, which takes place when the payment has been completed.