Question 1

What is the process of buying property in Dubai as a foreigner?

Accepted Answer

Foreigners can buy freehold properties in designated areas of Dubai. The process involves: 1) Choosing a property and making an offer, 2) Paying a 10% deposit via RERA-approved escrow account, 3) Obtaining mortgage approval if needed (typically 75-80% LTV for expats, 50% for non-residents), 4) Conducting property inspection and due diligence, 5) Signing the Sale and Purchase Agreement, 6) Transferring the remaining payment, and 7) Registering the property with Dubai Land Department (4% transfer fee). The entire process typically takes 2-4 weeks for ready properties. Premier Dubai Realty guides you through every step.

Question 2

What are the ongoing costs of owning property in Dubai?

Accepted Answer

Annual costs include: Service charges (typically AED 10-25 per sq ft depending on amenities), DEWA utilities (electricity and water), chiller fees if applicable (AED 5-8 per sq ft), property insurance (optional but recommended, around 0.2-0.3% of property value), and community fees if in a villa community. There is no property tax or capital gains tax in Dubai. If renting out, expect 5% Dubai Land Department rental fee and 5% agent commission on new leases.

Question 3

Can I get a mortgage in Dubai as a non-resident?

Accepted Answer

Yes, non-residents can obtain mortgages in Dubai. UAE residents can finance up to 75-80% of property value (or 75% for properties over AED 5 million). Non-residents are typically limited to 50% loan-to-value. Requirements include: minimum 21 years old, salary certificate or proof of income, bank statements for 6 months, passport copy, visa copy (for residents), and down payment proof. Interest rates range from 3.5-5.5% depending on profile. Pre-approval takes 2-3 days.

Question 4

Which Dubai areas offer the best rental yields for investors?

Accepted Answer

Top rental yield areas in Dubai: Business Bay (7-9% gross yield) - central location with high tenant demand; International City (8-10%) - affordable units attracting budget-conscious tenants; Dubai Sports City (7-9%) - popular with families and sports enthusiasts; Discovery Gardens (7-8%) - well-established community with consistent demand; JVC - Jumeirah Village Circle (6-8%) - family-oriented with good amenities. Downtown Dubai and Dubai Marina offer lower yields (5-7%) but stronger capital appreciation. Consider your investment goals when choosing.

Question 5

What documents do I need to buy property in Dubai?

Accepted Answer

Required documents: Valid passport (with at least 6 months validity), UAE visa and Emirates ID (for residents), proof of funds or mortgage pre-approval, NOC from developer (for off-plan or new properties), property title deed verification, Sale and Purchase Agreement (SPA), Form F (transfer form from Dubai Land Department), and passport-sized photographs. For mortgage buyers, also need: salary certificate, bank statements (6 months), proof of employment, and existing liability statements. We assist with document preparation and verification.

Question 6

How long does it take to complete a property purchase in Dubai?

Accepted Answer

Timeline varies by property type: Ready properties (move-in ready): 2-4 weeks from offer to registration if paying cash, 4-6 weeks with mortgage. Off-plan properties: Immediate reservation with 10% deposit, then payment linked to construction milestones over 2-4 years. The actual transfer at Dubai Land Department takes 1-2 hours once all documents are ready. Delays can occur with mortgage processing (2-4 weeks), NOC issuance from developer, or incomplete documentation. Working with experienced agents like Premier Dubai Realty ensures smooth, timely transactions.

Question 7

Are there property taxes in Dubai?

Accepted Answer

No, Dubai has zero property tax, zero annual wealth tax, and zero capital gains tax on property sales. This makes Dubai one of the most tax-efficient property markets globally. The only government fees are: 4% transfer fee when buying (2% paid by buyer, 2% by seller, or negotiable), 5% VAT on commercial properties only (residential is VAT-exempt), and 5% rental income registration fee if renting out your property. These minimal costs combined with strong rental yields and capital appreciation make Dubai attractive for international investors.

Question 8

What is the difference between freehold and leasehold property?

Accepted Answer

Freehold: You own the property and land outright with no time limit. Can sell, lease, or mortgage freely. Available in designated freehold areas (Dubai Marina, Downtown, Palm Jumeirah, etc.). Foreigners can buy freehold properties. Leasehold: You lease the property for a fixed period (typically 99 years in Dubai). Cannot sell the property, only transfer remaining lease term. Less common for residential properties. Musataha: Right to use land for development for up to 50 years. Most foreign buyers seek freehold properties for full ownership rights and easier resale.

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