Frequently Asked Questions

To begin with, the investment property market in Dubai offers higher rental yields than many other mature real estate markets. In fact, the average ROI here ranges between 5% and 9% as property prices per square foot are significantly lower than in other cities across the globe, such as London, Hong Kong and Paris. Thus, it is an affordable location to own luxury real estate, besides, there is also no stamp duty and property taxes as well.

In Dubai, UAE residents can only buy properties in designated freehold areas. Off-plan developments are a very attractive option since their prices are lower and developers offer flexible payment plans. Also, you can apply for a mortgage, and banks can cover 80% of the property price, if your investment property in Dubai is under AED 5M (USD 1.3M), while in the case of properties over AED 5M (USD 1.3M), you can obtain a 70% loan.

Villas are trendy in the Emirate since expats relocating to Dubai with their families opt to choose spacious properties with a study/flex room, open green spaces and a set of amenities. Ultra-luxury real estate in areas like Palm Jumeirah and Dubai Marina is also worth considering, as Dubai is one of the most popular destinations worldwide among HNWIs.

Off-plan property in Dubai is property under construction and is a popular option with end users and investors. Mostly, this is due to the fact that it has a lower purchase price than ready-to-move-in units and there is a possibility to resell off-plan property before its completion, thus, gaining higher capital appreciation.

Moreover, the majority of developers in Dubai require only a 5-10% down payment and you automatically become a full-fledged owner. The remaining amount can be paid during construction and upon/after handover, depending on the payment plan. Another perk of purchasing off-plan property is that it comes brand new with the latest technology, design and lifestyle features and on-site facilities.

Dubai offers real estate in diverse price ranges, from affordable to luxury, influenced by location. For budget apartments, look at Dubai Production City and International City. Serena and NSHAMA Town Square have affordable townhouses. For those seeking the most economical villas, Al Warsan, DAMAC Hills (AKOYA Oxygen), and Serena, developed by Dubai Properties, offer enticing possibilities.

In 2021, Dubai ranked 42nd in Mercer’s Cost of Living Survey, making it more affordable than San Francisco, London, and Paris. Your choice of residence significantly affects your cost of living in Dubai.

For example, a central 1-bedroom apartment costs AED 5.5K (USD 1.5M) per month, while a slightly farther location is about AED 3.6K (USD 1K). Monthly living expenses, including utilities, transportation, groceries, and leisure, average AED 3.2K (USD 870K) for one person and AED 11.8K (USD 3.2K) for a family of four.

Typically, health insurance in Dubai is provided by your sponsor/employer, relieving you of additional medical expenses.

To begin with, it is worth noting that the UAE real estate market is open to any buyer, therefore, you will not require a visa/Emirates ID when buying off-plan property in Dubai, only a passport copy. It is recommended that you hire a real estate agent to give you detailed information on available projects.

After having chosen a suitable property, you have to reserve unit at the developer’s sales office by signing the SPA and paying a deposit fee. Next, within 30 days after registration, you are obliged to pay a 4% Fee and Oqood registration fee.

According to the payment plan, you will be required to keep up with instalments until the property is handed over to you. Once completed, you will pay the final instalment and receive the keys to the property.

Here is the division of transfer and registration fees associated with purchasing a property in Dubai:

• DLD fees = 4% of the property price + admin fees (AED 580 for apartments and offices, AED 40 for off-plan)
• Registration fees for properties valued below AED 500,000 = AED 2000 + 5% VAT
• Registration fees for properties valued above AED 500,000 = AED 4000 + 5% VAT
• Mortgage registration fees Dubai Land Department = Up to 0.25% of loan amount + AED 290
• Property service charges –  Charged on a square foot basis, ranging anywhere between AED 3 to AED 30 or more.

DLD is the abbreviation for Dubai Land Department. It is the regulatory body by the government that deals with all property and real estate-related legislation, organisation, and services for any real estate transactions in Dubai.