WHO CAN INVEST IN DUBAI REAL ESTATE? - 01
When it comes to Dubai real estate investments, it is important to mention that anyone can invest in Dubai real estate. You, as an investor is not required to hold any type of residency or similar permit in order to purchase a property. The most important is to know your budget and what property you are looking for. An average property transaction in Dubai takes 30 days to complete from the date on which the Agreement for Sale is signed.
The process of investment in real estate is quite straightforward.
- Buyer and seller agree on terms;
- A Memorandum of Understanding (MOU) is signed and a deposit (usually 10%) is paid;
- The parties meet at the offices of the developer to apply for a No Objection Certificate (‘NOC’) to sell the property;
- The developer will usually issue the NOC against payment of a fee once the developer is satisfied that any amount due to the developer in the form of service charges have been settled in full;
- Once the NOC is issued, the partied are able to go to the office of the Dubai Land Department to officially transfer ownership. The Dubai Land Department will insist on payment of the purchase price being made in the form of a manager’s cheque made payable to the seller on the date of transfer. Once formalities are completed, a new title deed will be issued in the name of the buyer;
- If the buyer is purchasing with a mortgage then the bank’s involvement will be required. If the seller has a mortgage on the property the buyer is required to settle the seller’s mortgage in full prior to the NOC application. This increases the risk for the buyer and means the transaction is more complicated.
The following fees are applicable when purchasing a property:
- NOC fees - these can range between AED 500 and AED 5,000 and are payable to the developer, usually by the seller. Certain developers also levy a refundable deposit upon the buyer which is only refunded when the buyer presents the new title deed at the developer’s office and their records are updated;
- Real Estate Agent’s commission is 2% - 5% of the purchase price;
- Transfer fees – these are calculated at 4% of the purchase price with an additional amount paid towards admin fees which currently is not in excess of AED 5,000 and is paid to the Dubai Land Department; Mortgage registration fees (if applicable) are calculated at a rate of 0.25% of the registered loan amount and paid to the Dubai Land Department;
- Mortgage registration fees (if applicable) are calculated at a rate of 0.25% of the registered loan amount and paid to the Dubai Land Department;
- Developers ask for their annual service charges to be paid in advance and buyers should therefore account for their pro-rata share upfront.
If you want to know more – do Contact one of our agents. We will gladly assist you and provide any needed information.
WHY SHOULD YOU INVEST IN DUBAI REAL ESTATE? - 02
Dubai real estate was always been an attractive investment opportunity for businessmen from all over the world. During the pandemic time, the real estate market was booming due to extremely attractive and affordable project prices and payment plans. In 2021, prices have stabilized slightly. Nevertheless, Dubai is still one of the best places when it comes to real estate investments.
Fast and Easy Investment Process
One of the main the reason is that Dubai provides a very straightforward and hassle-free process while purchasing the property. The whole process doesn’t require too much of a paperwork and special documents, comparing to other countries.
Dubai Land Department
Dubai Land Department (DLD) has been created by the government specifically to monitor and control all of the real estate transactions. It secures investors and gives assurance that the project will be delivered.
High Return On Investments (ROI)
UAE and Dubai, in particular, has been a touristic and investor’s hub. 0 tax, wide variety of projects to invest into and easy investment process attracted many investors from all over the world. With the establishment of DLD investors got even more trust in Dubai real estate market. All these factors made Dubai real estate investment extremely profitable, with a high ROI, comparing to other countries. UK and USA have an average of 2-4% ROI when Dubai can offer even 10% ROI. Continuous development of the country will only strengthen its position when it comes to investment.
Investor’s Visa
Investments in Dubai can give an opportunity in obtaining a residency visa. Of course, certain terms and conditions should be considered, but the opportunity to have a residency is exciting.
How much should you invest to be eligible for Dubai residency?
Depending on the number of your investments you can be granted 5- or 10-years visa. Those who own property worth AED 5 million or more will be eligible for a 5-year residency visa. Investors who hold an investment through a deposit in an established company or a business partnership worth AED 10 million or more will be granted a renewable residency visa every 10 years. Others who made various investments of no less than AED 10 million, including property – which must be worth no more than 40% of the total investment – will also qualify for a renewable residency visa every 10 years.
Entrepreneurs Those who own a project worth AED 500,000 or above can be granted 5 years visa with the further possibility of upgrading it to an investor’s visa. It can be done only if all needed requirements are met.
What are the main benefits of the investor’s visa?
- Free entry into the country and residence on its territory;
- Arrangements for moving to the UAE for members of the family;
- Opening a personal account in one of the banks of the UAE;
- Obtaining a driver’s license and insurance in one of the Emirates;
- Teaching in educational institutions throughout the country;
- Free entry into the countries of the Persian Gulf and some other countries;
- Receiving profit and income that are not taxable.
HOW CAN YOU INVEST IN DUBAI REAL ESTATE? - 03
- Location;
- Facilities and amenities available in the community, including proximity to transport, education, childcare, etc.;
- Size;
- Amenities;
- Market conditions and timing of purchase;
- Interest rates;
- Maintenance costs (RERA Service Charge and Maintenance Index).
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