Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
Support for the purchase of real estate (apartment, house) in the UAE (Dubai)
Ukrainian citizens have the opportunity to buy real estate in Dubai without lengthy bureaucratic procedures. Today, in the UAE, it is possible to purchase housing for yourself only in permitted areas (the so-called “freehold zone”) and on the right of full or limited ownership. The latter type is quite common and is divided into leasehold (the possibility of use, subsequent sale and lease), usufruct (the possibility of use and lease for profit), musataha (additionally allows the owner to redevelop and reconstruct housing or land). We will talk in more detail about what the procedure for buying real estate in Dubai looks like in this article.
Freehold areas in Dubai: where is the best place to buy housing?
Typically, housing in Dubai is purchased by foreigners with the possibility of using it for a certain period, however, in specially designated areas you can buy housing and at the same time receive the right to use the land plot without any deadlines for implementation. Among the main such areas and the most common types of housing in Dubai that they offer, we can highlight:
- Downtown Dubai (studio apartments, large apartments);
- Dubai Marina (luxury apartments, houses near the beach);
- Palm Jumeirah (villas, townhouses);
- Business Bay (apartments) and others.
What taxes and mandatory fees must a person pay when buying real estate (apartment, house) in the UAE?
Buying real estate in the UAE requires careful budget planning, as a number of mandatory fees are added to the basic cost of the property. These additional costs can significantly increase the amount of money for purchasing an apartment in Dubai. A detailed list of the main taxes and other payments includes:
- transfer tax – 4% of the cost of the property;
- registration fee for issuing a certificate – from 545 to 1090 dollars (depending on the price);
- fixed amounts for registration with the registrar (according to the prices of a local specialist);
- real estate agent’s fee – 2% of the cost of the apartment or house;
- bank interest (purchase of housing is carried out under a mortgage agreement) – 1-2.5% on average;
- damage insurance – 0.25% and more.
How can I buy an apartment or house in Dubai in installments?
There are two main ways to buy real estate with deferred payments in this country: through a payment plan from the developer or through a mortgage. The first case is used when buying a property at the completion stage of construction and involves paying 30% in advance during construction and 70% after its completion and handing over the keys to the apartment or house, respectively. It is also fashionable to agree on a different distribution. The second case will be somewhat more expensive, since with mortgage lending, small interest will be accrued on each payment. At the same time, there is a significant plus – you can pay the mortgage for a longer period (up to 25 years).
It is worth emphasizing that foreigners who:
- are aged from 21 to 65;
- have an official income of $ 2,700 per month;
- have a positive credit history in the UAE;
- can make a down payment of 50% of the property value (for residents it is only 20%, respectively).
The procedure for buying residential property in the UAE: what are the main steps?
The process of buying a home in Dubai is relatively quick and takes 1-1.5 months. Below we will describe the main procedure:
- Step one — choosing a property and the method of payment (by mortgage, by agreement with the developer or immediately). In order not to waste a lot of time and to be sure that the seller will not turn out to be a fraudster, we recommend that you involve our real estate lawyer in the search;
- Step two — legal verification of the seller’s identity. Our company’s real estate specialist will require your future counterparty to confirm ownership of the property, its resident status;
- Step three — signing a preliminary agreement and making an advance payment (or a memorandum of understanding). This document, as a rule, records the exact address, area and description of the apartment, house, its cost, payment schedule, and terms of transfer of ownership. To avoid possible legal consequences, the lawyer will first familiarize himself with the proposed text of the agreement and, if necessary, make the necessary changes;
- Step four – obtaining all necessary documents for signing the main agreement and registering the ownership right (in particular, a certificate of no objections, a mortgage agreement, documents confirming the legality of the sources of origin of funds, etc.);
- Step five – final registration. Finally, at this stage, the buyer pays the remaining amount (or the bank transfers the mortgage funds), pays tax, registration fees and receives an official certificate of ownership of the apartment, house. By the way, after purchasing housing, a foreigner can also apply for a resident visa in the UAE, if he meets a number of mandatory criteria.
Buy a home in the UAE (Dubai) easily with the help of our lawyers. Get a consultation and find out the cost of their full legal support for purchasing real estate in this country by filling out the form below.
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Do you want to buy an apartment in Dubai for living?
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Do you need advice on choosing a zone to purchase property in Dubai?
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Are you interested in drafting and concluding a purchase and sale agreement for an apartment or house in Dubai?
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