Dubai has become a key destination amongst international property buyers and is known for its luxurious waterfront properties overlooking the Dubai Marina or the man-made Palm Island.
This buying guide will help you understand the process of buying a property in Dubai and what the Dubai property market entails.
Dubai is known for its warm weather, high end restaurants and bars, and most importantly its high standard of service that has attracted tourists and expats that have fuelled the growth in the property market.
Dubai boasts some of the best developments in the world and attracts investors from around the globe. In March 2006, a law was passed allowing foreign investors to hold freehold property. Foreigners have been granted ownership rights in certain areas in Dubai offering the opportunity for property investors to have a slice of the luxurious lifestyle.
The process of buying a property in Dubai can be broken down into 4 simple steps depending on whether the property is direct from the developer or a resale.
1) Pay a reservation deposit of £3000 to take your chosen property off the market.
2) If the property is complete, you will need to pay the relevant fees (Oqood, admin etc) as well as the property’s building charges to take ownership of the property. If the property is off-plan these fees and the remaining 50% will need to be paid on completion.
3) You are then required to sign your contract and pay your contract payment. If your property is complete, this payment will be the entire purchase price. If your property is off-plan you need to pay 50% of the purchase price at this point.
4) The developer will send you fully executed documents of ownership at this point. Your Title Deeds will be sent to you by the Dubai Lands department after the completion of your property.
1) You will need to sign a Property Re-sale Agreement. You will also need to make a reservation payment of 10% of the property purchase price.
2) We will facilitate the entire property transfer process dealing with the developer, the previous owner and the Dubai Lands department on your behalf. We will contact you to sign a number of documents and provide proof of identification at various stages of the process.
3) You are then required to pay your 1st instalment for the property. If the property is complete this instalment will be 90% of the purchase price. If the property is off-plan this payment will be 80% of the property purchase price followed the final 10% on completion.
4) You will then be given all the documentation required to complete the transfer process. These documents must be taken to the Dubai Lands department on an agreed day with the seller to complete the transfer and where you will be issued with evidence of the transfer and your new proof of ownership. We can take care of all of this on your behalf as outlined below.
Dubai is a tax free country
Dubai is a tax free country, which is a great advantage when buying a property. There are transfer costs of around 2 percent of the property price but other than that there are no other taxes to be paid when buying a property in Dubai.
Service charges details will appear in the sales and purchase agreement, including what services the buyer is paying for and how the management firm will collect payment.
For any more questions on buying a property in Dubai, contact Select Property’s sales team who will be happy to answer any of your questions.