Almost any resident in the world can buy property in the city of Dubai. To do this, you should not necessarily come to the Emirates or obtain a resident visa. Your passport and the required amount of money to purchase the real estate should be enough.
Of course, if you buy apartments to live in and plan to move, you will have to get a resident visa. It is issued to property owners, provided the new development has already been built, and the cost of the home is above 750,000 dirhams. In the case of an investment purchase, everything can be arranged remotely.
Residential property in the city of Dubai can be divided into individual apartments, villas, townhouses, and other plan layouts.
There is a separate category — serviced apartments. Such real estate units can be bought as apartment hotels. Each resident will have access to all hotel services from cleaning to valet parking and catering.
You can also purchase a hotel room. On average, you will earn an income of 7-10% annually. As the owner, you can only there live no more than 14 days a year.
The class of real estate in Dubai does not have clear definitions. It can vary from developer to developer. To make it easier to understand, you can divide all the apartments by price:
- budget class — from USD 130,000 to USD 500,000;
- business class — from USD 300,000 to USD 1,000,000;
- premium class — from USD 1,000,000 to USD 5,000,000;
- luxury class — starting from USD 5,000,000
The Dubai real estate market offers a choice of different styles, giving each its own attributes. We have put together a mini glossary to make it easier for you to find the apartment of your dreams.
- villas — detached buildings with their own land plot or coastline;
- townhouses — two or three-story villas with adjoining walls to adjacent lots;
- penthouses — apartments on the upper floors of the developments with higher ceiling heights, larger living areas, and better views;
- duplexes and lofts — duplex apartments;
- simplex — spacious one-level apartments
- developments right by the sea;
- houses closer to the desert.
The next step is getting to know the residential development and selecting the required apartments. All this takes place in one of the developer’s sales offices. The real estate expert will agree with you in advance on a convenient time and draw up a schedule of show tours.
Our company can pay all transportation costs for a taxi. Or you can drive your own car or an expert will give you a ride.
In general, our clients manage to visit three sales offices for different developments per day. As your house will still be under construction, you will be given the opportunity to familiarize yourself with the following presentation materials:
After you have found the right apartments, you have to make a reservation. In Dubai city, verbal agreements are very rare. Most developers ask for an official booking. Each company has its own regulations and rules. So the specific data might vary.
To book an apartment, you need to sign a reservation agreement and pay a certain percentage of the price. After that, you will receive a booking confirmation to your email address.
One of the features of the Dubai market is the minimum documents that are required from you to make the purchase. You will need a copy of your passport and provide the office manager with your mailing address, email, and phone number.
The procedure will not take more than 10-15 minutes. Keep in mind, booking fees cannot be refunded. If later on, you change your mind about buying an apartment, the unit will be put back up for sale. Therefore, consider all the pros and cons before making a purchase.
After booking the apartment, you can pay the entire amount at once. Payment is made in local currency — dirhams. You can pay in cash, bank transfer, or pay by cheque. To pay by check, you have to open an account. Only holders of a resident visa can open accounts in local banks. If you are purchasing apartments for investment purposes, then a local bank account will be helpful to facilitate subsequent resale.
To obtain a mortgage with a bank, you will need a passport and a statement of income and expenses, which will show that you have a monthly account balance of at least 25,000 dirhams.
You can count on a loan in the amount of 50% of the lot value. The remaining half you will have to pay as a down payment. You will have to set up a payment schedule, and accordingly make payments on time.
This is the most common payment method. When buying an apartment in installments, you will be given a payment plan. Its conditions may differ depending on the project, the developer, and the construction stage. Let's review some of the options.
This is the most common payment method. When buying an apartment in installments, you will be given a payment plan. Its conditions may differ depending on the project, the developer, and the construction stage. Let's review some of the options.
Under this arrangement, you will need to pay 30% of the lot value before the end of construction. You will be given a payment schedule, you will need to pay 5 or 10% of the price every 3 months or every 6 months.
The remaining 70% must be paid after the development is commissioned and before the apartment is accepted. There are other payment plans — 50/50, 20/80, 30/70, and so on.
• Post-hand-over payment plan 30/30/40
The first two figures are the same as in the previous arrangement: 30% — while the development is being constructed and another 30% — after all work is completed. The third part of 40% is added — and you pay it within a conditional period of 6 months or a year, but after accepting the apartment and receiving the keys.
Under any of these arrangements, along with the first payment, you will need to pay land tax at the local Dubai Land Department — 4% of the property value.
After that, the developer will send you a purchase agreement for signing — A Self-Purchase Agreement or SPA. Then the developer will receive confirmation from the Land Department that you have paid the land tax and will put a signature in the SPA accordingly.
This whole procedure can take a month up to three months or even more. No one will be able to give you a specific time due to the bureaucratic features of the UAE. You will just have to be ready when the procedure is complete.
If you find any defects, for example, poorly closing windows, leaking under the sink, or uneven floors — the developer will have to fix all these defects within 1 or 2 weeks. After that, you will be invited back for a re-examination.
If you are completely satisfied with the apartment, then you can pack your belongings and prepare to move in. Only a few important details remain to be covered:
- utility registration with DEWA. This organization provides electricity and water supply to all apartments in Dubai city. To activate their services, you will need to fill out an application, submit title deeds, and pay a deposit along with the connection fee;
- Connecting an air conditioner. This is indispensable in the city of Dubai, which is found in any office or apartment;
Finally, you just have to select the right furniture and decorate your home. Lastly, just enjoy your new beautiful lifestyle in a tropical climate. Well done!