Frequently Asked Questions

Select one of the frequently asked questions below to learn more about buying, selling, and renting real estate in Dubai. Also, begin to think about important things to consider when diving into your real estate search.

Question about selling

Dubai has always been eyed as one of the most profitable venues for real estate investments. Whether you are buying a property for residing or as an investment picking an area where the resale value is good, and the rental prospects are bright, it would be a good choice. This would be a future proof decision for financial security. Considering such aspects, Dubai real estate delivers some of the best investment opportunities for home buyers with varied requirements. some reasons why the Dubai real estate investment is considered an irresistible choice among the residents and expats as well as foreigners from around the world such as Dubai  is Smart ,safe and happy city, Dubai is A symbol of luxury, getting high return of investment, no property taxes, and off Corse the law system that securing the rights of all the investors.

Dubai Land Department – DLD is a government agency that provides necessary legislation, organisation, and services for any real estate transactions in Dubai.

The Real Estate Regulatory Agency (RERA; Arabic: مؤسسة التنظيم العقاري) is a government agency to regulate the real estate sector in Dubai, the governmental Dubai Land Department.

A real estate registration trustee office is an authorised agency that acts as a satellite office of the Dubai Land Department. It conducts numerous services such as the transfers or sales, mortgages, grants, development, and pre-registration of properties.

Rent dispute centre (RDC )  is responsible for the settlement of all rental disputes arising between tenants and landlords over real estate located in the Emirate or its free zones, including counter-claims as well as requests for temporary or urgent action from either party to the lease.

Hassantuk for Homes  is the only certified wireless fire safety system designed for villas in the UAE. Hassantuk ensures the fastest response time to fire and emergency alerts through a 24×7 connected fire alarm system, which is integrated with Civil Defence Command Centres in every emirate.

Subscription to Hassantuk is mandated by:

UAE Cabinet Resolution No. (24) Of 2012 & Ministerial Resolution 505 of 2012.

A) You can get a renewable three years visa when you purchase a property in Dubai that is:

 The property or properties should be 100% ready, not on a construction plan, and most importantly, not subject to a dispute. The purchase value (not the current market value) of your property needs to be at least AED 750,000 (205K$)  or above, and you have paid off a 50% mortgage (you should be mentioned as the property owner). The Dubai Property Visa can be issued against residential properties purchased in a freehold area (Apartment, Serviced Apartment, Villa, Townhouse) and/or commercial properties (Hotel Room, Hotel Apartment, Office, Warehouse).You are eligible for a UAE investor visa as long as your total investment is AED 750,000 or above in one of a maximum of three properties. If multiple people own the property, everyone can apply for a Dubai investor visa as long as they have a share of AED 750,000 or above in purchase value.

If the property is owned jointly by husband and wife, both can apply for a UAE investor visa even if the property’s total purchase value of AED 750,000 is divided between both of them. An attested marriage certificate has to be presented in this case

B) 5 Years investor visa

Minimum 2 million value property or owned share ( one property or more ) under the applicant name

  1. In case the property is mortgage, at least 2 million of property value must be paid to the bank. NOC letter and paid amount letter .
  2. husband and wife can share in one property (marriage certificate required).

C) 10 years long term Golden visa

This visa is available to any individual who invests at least AED 10 million into the UAE. It is stipulated that a maximum of 40% of the investment, or AED 4 million, can be in real estate. This may be split across up to three properties to a total value of AED 4 million. The other 60% of the investment must be made in other sectors. A six-month multiple entry visa can be issued for the applicant and used to facilitate obtaining a golden residency. This visa can be extended to facilitate the completion of the process.

Simply the answer is yes, licensed real estate broker companies in Dubai are the legal parties that can broker a sale & purchase properties in Dubai, agent responsibilities are controlled by RERA and UAE laws hence the rights of the buyer or the seller are secured.

No, you don’t have to pay tax when you buy a house in Dubai

The transfer fees is an amount of money that to be paid to the government to register the property in the land department ownership system, it is 4% of the selling price or the valuation amount done by the bank or DLD valuation system.

No, the expats who is not from UAE or any Gulf countries can buy a property in specified areas called freehold areas.

Yes, any person of any nationality, whether they are a resident of Dubai or based abroad, can purchase property in Dubai’s freehold market. You are not required to hold any type of residency or similar permit in order to purchase property.

 Yes, the laws in Dubai permit residents and international investors to purchase property in Dubai’s freehold market.

An average property transaction in Dubai takes around 20- 30 days to complete from the date on which the Agreement for Sale is signed.

Freehold property is any estate which is “free from hold” of any entity besides the owner. Hence, the owner of such a property enjoys free ownership for perpetuity and can use the property for any purposes however in accordance with the local regulations. The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death.

It is long term tenancy contract

leasehold property is any estate which is “not free from hold” of any entity besides the owner. Hence, the lessee of such a property can use the property for any purposes however in accordance with the local regulations that mainly determined by specified period of time 39-99 years .

While resident expatriates can generally borrow between 70% and 85%, non-residents can generally borrow 60% to 70%. It all depends on the lender, and the project they are lending on.

Typically, the prospective Buyer and Seller enter into an MOU, wherein the buyer commits to purchase the property and the seller commits to sell the property. In a purchase transaction, the buyer pays an initial booking deposit check (10% of the selling price in favour of the seller that will be kept with the broker company and will be given back to the buyer after successful transaction of the property) , If the buyer withdraws from the transaction, the buyer forfeits his booking deposit. If the seller withdraws from the transaction, the seller refunds the booking deposit amount. The buyer pays the purchase amount considered to the seller upon transfer of the property to the buyer by manager check.

It is 2% of the sale price plus VAT that will be paid by manager check to the brokerage company on the transfer date.

Trustee offices is AED 4,000 for transactions over AED 500,000, and AED 2,000 for those below this amount. Fees are payable in cash and paid by the parties as agreed.

The primary real estate ( off plan properties ) market consists of new properties, which include new launches and ongoing projects from the developer that not ready yet for living in and being bought by paying its value by instalments till the handover date .

Article 25 of the Dubai Law lays down that the Owner shall pay the share of the Service Charge to the Management to cover the expenses of the Management, operation, maintenance and repair of the Common Areas and it is not related to the normal maintenance of the property its self . The service charge is calculated on a per square foot basis, with the amount varying between project developments depending on factors such as which floor the apartment is located on, whether it has a terrace or balcony, etc.

If you are unable to complete the payment of your off-plan property, then the developer has the following rights:

  1. If 80% of the construction is complete, the developer may keep all the money received from the buyer and sell the unit in Public Auction to recover the payments or the developer may deduct more than 40% of purchase price and cancel the contract.
  2. If 60% of the construction is complete, the developer may deduct 40% of purchase price and cancel the contract.
  3. If construction has started but hasn’t reached 60%, the developer can deduct 25% of purchase price and cancel the contract.
  4. If circumstances arise outside of the developer’s control that prevent the completion of construction, the developer is entitled to deduct 30% of the purchase price and cancel the contract.

Since the purchased property is off-plan, the Dubai Land Department will issue a pre-title deed until construction of the property has been completed after which you can apply for a Title Deed.

The Landlord shall provide the Title Deed, Landlord’s valid Passport, Residence Visa copy, and Emirates ID , also the owner has to sign either RERA Form A or NOC  letter authorizing the broker company to do marketing for his property as per updated new RERA Laws .

Question about renting

For Individual, tenant should have a valid passport, UAE Residence Visa  and Emirates ID  (Original copies of these documents should be shown by the tenant to the Property Broker).

For Corporate Tenant, a valid Trade License, General Manager’s Passport Copy(if he is signing the the Agreement) and valid passport of the Occupant.

The Tenant has to pay the agreed Annual Rent depending on how many cheques both parties agreed with ( in Dubai you can pay the annual rent in installments by PDC and not in one-time advance payment ), the Security Deposit ( 5 -10% of the rent amount ), the Commission of the broker (5 -10% of the rent amount ), the security deposit for DEWA ( AED 2200-4200 ) and Empower(if applicable) and Ejari Registration.

Security Deposit (5% for unfurnished properties -10% for furnished properties) of the Annual Rent paid by the tenant in advance and held in reserve in the event of the depositor failing on a contractual obligation to protect the Landlord in a real estate lease. It covers Loss of Rent, Damage to the Property, Lost of Security Keys and Repairs that are not wear and tear.

yes, a tenant can use a third party (mainly first-degree relatives) cheque provided they will be submitting a Letter of Indemnity from the Third Party and a passport and Emirates ID .

Required documents to initiate Ejari registration include:

1. Copy of the title deed, 2. Copy of the tenancy contract, 3. Copy of the landlord’s passport, 4. Copy of the tenant’s passport and visa page. RERA charges per registration of tenancy contract is AED 175.00. Once the documents are submitted and the payment is made, registration will usually be completed at the same time. Tenant himself can visit any Ejari registration offices such as Al Manara Centre, Al Barsha Mall and Altwar centre to do the registration.

No, the RERA regulated the rental increase in Dubai as per the rera rent calculator that belongs to the government and determine the increase amount based of rera rental index .
Yes, a Tenant can terminate the contract, provided the Tenant will notify the Landlord two (2) months in advance and will be paying two (2) months rent as cancellation penalty and all the utility bills should be settled.

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