Most Frequently Asked Question Dubai Real Estate - FAQ 2023

Can foreigners buy property in Dubai?
Yes, foreigners can buy property in Dubai. The Dubai government has established 'freehold' areas where foreigners can own property outright. These areas include popular locations such as the Palm Jumeirah, Dubai Marina, Downtown Dubai, and others.

Do you need a residence visa to buy property in Dubai?
No, you do not need a residence visa to buy property in Dubai. However, owning a property in Dubai can potentially make you eligible for a residence visa, subject to certain conditions and approval from the authorities.

What are the costs involved in buying property in Dubai?
In addition to the purchase price, buyers should consider costs such as a 4% transfer fee to the Dubai Land Department, a 2% real estate agency fee, a 0.25% mortgage registration fee if you're taking out a mortgage, and conveyancing fees. There may also be service charges if the property is in a managed development.

Can I get a mortgage in Dubai?
Yes, both residents and non-residents can apply for a mortgage in Dubai. The exact terms and conditions, including the down payment required and the interest rate, can vary between banks and depend on individual circumstances.

What is the process of buying property in Dubai?
The process typically involves finding a property and making an offer, paying a deposit once the offer is accepted, conducting due diligence, signing a Memorandum of Understanding (MOU), applying for a No Objection Certificate (NOC) from the developer, and finally, transferring the title deed at the Dubai Land Department.

What is the property market like in Dubai?
The property market in Dubai is dynamic and diverse, offering a wide range of options from luxury villas on the Palm Jumeirah to affordable apartments in newer developments. The market can be cyclical with periods of rapid growth followed by slowdowns. As of my last training cut-off in September 2021, the market was showing signs of recovery after a period of price declines.

Is it better to rent or buy in Dubai?
The decision to rent or buy in Dubai depends on your personal circumstances, including your financial situation, how long you plan to stay in Dubai, and your lifestyle preferences. Buying can be a good investment if property prices are rising and you plan to stay for a long time. Renting can offer more flexibility and less financial commitment.

How can I verify if a real estate agent in Dubai is legitimate?
Real estate agents in Dubai must be registered with the Real Estate Regulatory Agency (RERA). You can check an agent's RERA certification to ensure they are legitimate. It's also a good idea to look for reviews or ask for recommendations.

What are freehold properties in Dubai?
Freehold properties in Dubai are properties that can be fully owned by the buyer, including the land on which the property stands. This is in contrast to leasehold properties, where the buyer owns the property for a certain number of years but not the land. The Dubai government has designated certain areas as freehold areas where foreigners can buy freehold properties.

Can I buy off-plan properties in Dubai?
Yes, off-plan properties, which are properties purchased before they are fully constructed, are common in Dubai. Buying off-plan can offer the opportunity to buy at a lower price, but it also comes with risks, including the risk that the developer may not complete the project on time or to the expected standard.

What are the property taxes in Dubai?
Dubai does not have property taxes in the traditional sense. However, property owners are typically responsible for service charges for the maintenance of common areas in developments. These charges vary depending on the property and the development.

Can I rent out my property in Dubai?
Yes, property owners in Dubai are generally allowed to rent out their properties. However, rental properties must be registered with the Real Estate Regulatory Agency (RERA), and landlords must comply with Dubai's rental laws, which cover issues such as rent increases and eviction procedures.

What is the role of the Dubai Land Department?
The Dubai Land Department (DLD) is the government agency responsible for overseeing real estate in Dubai. The DLD's responsibilities include registering property sales, issuing title deeds, regulating real estate agents, and providing information about Dubai's real estate market.

What is a title deed in Dubai?
A title deed is a document issued by the Dubai Land Department that proves ownership of a property. When you buy a property in Dubai, the transfer of ownership is completed when the new title deed, in the buyer's name, is issued.

What is the process for selling a property in Dubai?
The process for selling a property in Dubai typically involves appointing a real estate agent, listing the property for sale, accepting an offer, signing a Memorandum of Understanding (MOU), obtaining a No Objection Certificate (NOC) from the developer if the property is in a development, and finally, transferring the title deed at the Dubai Land Department.

What is a No Objection Certificate (NOC) in Dubai real estate?
A No Objection Certificate (NOC) is a document issued by the property developer stating that they have no objections to the sale of the property. It's typically required when selling a property in a development in Dubai. The NOC confirms that the property is free from any outstanding dues to the developer.

What are the rules for property inheritance in Dubai?
Inheritance laws in Dubai are based on Sharia law, which has specific rules for the distribution of assets among heirs. However, non-Muslim foreigners can register a will in Dubai that specifies how they want their Dubai assets, including property, to be distributed. Without a registered will, the distribution of assets will default to Sharia law.

What is the role of the Real Estate Regulatory Agency (RERA) in Dubai?
The Real Estate Regulatory Agency (RERA) is a government agency that regulates Dubai's real estate sector. RERA's responsibilities include licensing real estate agents, certifying real estate developments, regulating rental properties, and providing dispute resolution services.

What is the difference between freehold and leasehold property in Dubai?
Freehold property in Dubai refers to property that can be fully owned by the buyer, including the land on which the property stands. Leasehold property refers to property that is leased for a certain period of time, typically 99 years. After the lease period, the property reverts back to the freeholder.

What are the best areas to buy property in Dubai?
The best area to buy property in Dubai depends on your personal preferences and needs. Popular areas for investment include Downtown Dubai, Dubai Marina, Palm Jumeirah, and Jumeirah Beach Residence. These areas offer a mix of luxury apartments, stunning views, and proximity to amenities.

What is the property market like in Dubai? 
The property market in Dubai is diverse and dynamic, offering a wide range of properties, from affordable apartments to luxury villas. The market has experienced fluctuations in recent years, but the overall trend is positive, driven by factors such as economic growth, infrastructure developments, and government incentives.

 

Is it better to rent or buy in Dubai? 
This decision depends on your financial situation, duration of stay, and personal preferences. Renting can provide flexibility, while buying can be a long-term investment. To make an informed decision, consider factors like property prices, rental yields, and your future plans.

 

Can I rent out my property in Dubai? 
Yes, you can rent out your property in Dubai. However, ensure that the tenancy contract is registered with Ejari, an online registration system that regulates tenancy contracts.

 

What is the process for selling a property in Dubai? 
The process involves appointing a real estate agent, marketing the property, negotiating with potential buyers, and signing a Memorandum of Understanding (MOU). You will also need a No Objection Certificate (NOC) from the developer and to transfer the title deed at the Dubai Land Department. You can read more about this https://www.phoree.ae/why-list-your-property-with-phoree-real-estate-in-dubai-uae
 
What are the rules for property inheritance in Dubai? 
Inheritance laws in Dubai are based on Sharia law. However, non-Muslim foreigners can register a will with the Dubai International Financial Centre (DIFC) Wills & Probate Registry to ensure their assets are distributed according to their wishes.
 
What is the latest update on visa and Golden visa in Dubai real estate? 
The Golden Visa is a long-term residency program introduced by the UAE government, granting eligible investors, entrepreneurs, and professionals a 5 or 10-year renewable visa. Property investors with a minimum investment of AED 5 million can apply for a 5-year visa, while those with AED 10 million can apply for a 10-year visa.