FAQ
Dubai Real Estate FAQs
Frequently Asked Questions
Why to invest in Dubai Real Estate ?
An investment in Dubai attracts no annual property tax, income tax, capital gains tax, rental revenue tax, or Value Added Tax (VAT). This allows an investor to dedicate a much larger financial portfolio to purchasing property and, in turn, get higher returns
Is Renting or Buying Better?
It is actually cheaper to buy your house rather than renting it in the UAE. When you crunch the numbers based on your annual rent within a specific period of time, and how much your monthly payments towards a mortgage would come up to, you’ll see that the overall costs actually make it more favorable for UAE residents to buy their home.
Is off-plan property or Ready Property Better for Investment?
An off-plan property refers to a building that is not completed yet. Once you decide to purchase it, you can make staggered payments until your unit is fully built and available. On the other hand, a ready property is a house that is ready for occupancy.
An off-plan property will be a good investment so its market price will almost surely improve after it is completed. Because of the increased value, the property could be sold for a higher price.
What is the eligibility criteria for getting Golden visa for Investor in UAE?
You may purchase real estate in the UAE for AED 2 million ($545,000) for a 10 years renewable residency visa, and the husband or wife and children can be sponsored. Another option is purchasing real estate for AED 750,000 ($204,000) to get a 2-year residence visa.
How much percentage of property value can you avail as Mortgage in Dubai?
The amount that you can borrow depends mainly on your income and liabilities.
For a property purchase price under AED 5million the maximum loan-to-value (LTV) for an expat is 80% and for a UAE national is 85%. For properties over AED 5million, this decreases to 70% LTV for expats and to 75% for UAE nationals and 50% for Non-Residents.
Interest rate can be generally 4.5% fixed for 3 years for expats and UAE Nationals. 5.1% fixed for 3 years for Non-Residents.
What is an Escrow Account?
An escrow account is that which acts as a third-party funding medium wherein the merchant receives access to the transferred money (by the buyer), once an escrow agreement has been fulfilled. If the agreement is not fulfilled by the merchant, the fund is then returned to the buyer.
In UAE’s real estate market, an escrow account has a very particular function. The developers of the various projects have to open different escrow accounts for every project, as per the Escrow Account Law in UAE. It protects the buyers funds and regulates the funding that the developers receive from the buyers in order to construct the projects.
What is the eligibility to buy a property in Dubai or What you need to get started?
Documents required are Passport & Visa, Emirates ID, Salary Certificate, 6 months bank slips for Expats/UAE Nationals/Emirati (Salaried).
Documents required are Passport & Visa, Emirates ID, MOA, Trade License, Company Profile & Company Statements, Personal Bank Statements for 6 months for Expats/UAE Nationals/Emirati (Self-Employed).
Documents required are Passport & National ID, Proof Of Residence (Utility Bill), Bank statement for 6 months, Salary certificate (Salaried) or Trade License (Self Employed) for Non-Residents.
What is the average property value in UAE?
The Apartments are grouped into studios to 1/2/3 bedroom and 4 bedroom Penthouse. starting from AED 300K to AED 100 million depends upon the location.
The Townhouses are grouped into 1/2/3/4 bedroom starting from AED 595K to AED 10 million depends upon the location.
The villas are grouped into independent and Luxury Mansions 5/6/7 bedroom Mansions from AED 9.5 million to 600 million depends upon the location.
What is the minimum down payment to own a property in UAE?
The initial down payment required to own a property in Dubai ranges from 5% to 50% depends upon the property you choose to buy and 4% Dubai Land Department Charges + Oqoodi/Title Deed fee of AED 1050 for Registering the property under your name.
Can I Ask You for Advice?
Yes, For sure. Get in Touch with us for any assistance with regards to Property Advice, Property Developers, Property Investments, Property solutions, Property Management, Mortgage Advisory. Our Expertise teams are available 24*7 to help you, understand your needs and provide you the right solution with best advice.