Find answers to frequently asked questions related to buying property in Dubai.
Can I purchase a property in Dubai ?
Yes. Nationals, Non-nationals and non-residents can all purchase property in Dubai. The funds to purchase will need to be available in Dubai and you will need to be in the country to complete the purchase or have appointed a power of attorney (poa) to act on your behalf.
Do I need a real estate lawyer ?
A purchasing contract is prepared by our in-house conveyancer’s. It is a legal contract governed by the Real Estate Regulatory Authority (RERA) and outlines the conditions and process of the sale. The conveyancer’s will complete all stages of your purchase up to the final completion when you receive the keys to your new property.
What documentation will I need when buying ?
If you are a non-resident you will need to show a valid passport as identification and if you are a resident of Dubai, your Emirates I.D card will be required also.
Is there any restrictions to where I can buy property in Dubai ?
Non-nationals can only buy in specific areas of Dubai, these are called Freehold communities. Most communities however are freehold and can be purchased in.
Can I obtain a mortgage to buy property in Dubai ?
Yes. For residents of Dubai, banks will lend buyers up to seventy-five percent of the purchasing price for completed properties, and fifty percent for properties still under construction. Mortgagees will need to pass the banks credit checks and you must have proof of a monthly salaried income if a resident. Non- residents can also borrow from Dubai banks up to fifty percent of the purchase price, this is called a non-resident loan. All mortgages have processing and registration fees so check first before agreeing any loan.
Will i be required to pay a deposit when signing the sales contract?
Yes. Upon selecting the property you wish to purchase a security deposit will be requested from you. The amount is equivalent to ten percent of the agreed sale price and will be given to the seller only when the property is transferred into your name.
How long will a sale take to complete ?
It will all depend on the circumstances of both buyer and seller and if mortgages are involved by either side. Generally if the buyer is a cash purchaser and there is no mortgage on the property, the sale will take between one to four weeks. If one or other party has a mortgage the process will take between four to eight weeks approximately.
What fees will I have to pay ?
When purchasing any property in Dubai you will be required to pay a property transfer fee. The transfer fee is four percent of the sale price. There is an estate agent’s fee of two percent of the sale price and additionally you will need to budget approximately five to six thousand dirham’s extra to cover administration and conveyancing fees. The exact amounts to be paid are dictated by the sale price but will all be shown to you in the sales contract prior to you signing.
Will I receive a visa if i buy a property in Dubai ?
When purchasing property in Dubai an investors visa can be obtained. The property being purchased must be above one million dirhams and the visa allows the purchaser to reside in Dubai. You are not able to take employment on this type of visa and it will need to be renewed each year.
Do I have to pay a community fee when owning a property ?
All property owners must pay an annual maintenance fee to the community developer in which the property is located. The maintenance fee covers community running costs such as the landscaping, security guards and all of the communities facilities upkeep. The amount is based on the size of each property and your agent can advise exactly what this amount will be prior to entering into the sale.
What precautions should I take when buying property in Dubai ?
Firstly only work with regulated agencies. Always ask to see the agents RERA broker number, this will ensure they are a registered agent and are licensed to practice in Dubai. Always ask lots of questions and request anything you have agreed with the agent to be included in the sale contract. When handing over any payments request this to be at the agents office where possible and always request receipts and copies of all documents. If you are unsure about anything, walk away.
Find answers to frequently asked questions related to leasing property in Dubai.
What documentation will I need to lease a property?
Prospective tenants are required to show a valid passport, a valid visa page or visa-processing letter, this can be prepared by your companies HR department. The required documents are needed for each tenant wishing to be included on the tenancy contract.
Who will prepare the leasing contract?
The leasing contract is a legal document governed by the real estate regulatory authority (RERA). It will be prepared by SIRIUS REAL ESTATE, signed by both landlord and tenant and is required to be registered with the Dubai Rent Committee. The contract outlines all conditions of the lease and the payments being made.
Do I need to give references?
No. You will not be required to provide references to lease a property in Dubai.
Will i be required to pay a security deposit?
Yes. Upon selecting the property you wish to lease a security deposit will be requested from you by the SIRIUS REAL ESTATE agent. The amount is payable by cheque and will be equivalent to five percent of the annual lease amount for unfurnished properties, and ten percent for furnished properties. This amount is payable to the landlord.
Who holds the security deposit?
SIRIUS REAL ESTATE will collect the security deposit amount from you when you sign the lease agreement. It will be held in our offices up until the landlord signs the lease agreement at which point it will be handed over to them. The landlord will have the right to cash the security deposit amount for the duration of the term. This will be returned to the you at the end of the lease agreement provided the property is returned in the same condition it was leased out to you.
How are the leasing installments taken?
The rental installments are typically between one to four payments, they are taken as post dated cheques spaced evenly throughout the lease term. These payments will be taken in advance when signing the lease agreement and be held by the Landlord. As each installment is due the landlord or their property manager will cash each cheque.
Are utility bills included when leasing?
All utilities are the responsibility of the tenant. DEWA is the supplier for water and electric in Dubai and for many properties the DEWA will also include the A/C. When not included you will require an additional connection, this is called Empower. For data and television packages there are many suppliers, the main suppliers being OSN, Showtime and Du. In all cases your agent will advise you which connections you require and are best suitable to your chosen property.
What additional fees will I need to pay?
There is an agency fee applicable, being five percent of the annual lease amount. Also for some properties you may require a residents pass, this could be for the access to the pool, beach or fitness facilities. For most properties this is included, but where not included your agent will advise you, and of the costs involved if required.
What happens at the end of the contract?
Standard leasing contracts are for twelve months. Three months prior to the contract expiring your agent will contact you to discuss if you wish to renew. Any changes to the contract are governed by the rental committee and its current laws. If you wish to vacate the property you will be required to inform your landlord three months prior, and at the end of the term an inspection will be carried out and your deposit returned, provided the property is returned in the same condition it was leased out to you.
What precautions should I take when leasing property?
Firstly only work with regulated brokers. Always ask to see the agents RERA broker number. This will ensure they are a registered agent and are licensed to practice in Dubai. Always ask lots of questions and request anything you have agreed with the agent to be included in the lease agreement. When handing over any payments request this to be at the agents office where possible and always take receipts and form a paper trail. If you are unsure about anything, walk away.