Important Points To Know Before Real Estate Investment in Dubai!

Why Dubai Real Estate?

Great Weather

Many people think that Dubai is a very hot city, but this is not completely true. There are only two seasons in Dubai Summer & Winter. Summer starts here around May and Winter starts in October. So, you can enjoy great weather between October to April months.

For the rest of the months, there is Air Conditioning everywhere, even bus stops are here fully air-conditioned. Even in the summer season morning & evening have pleasant weather, you can go to the beach every day in the morning and enjoy your evening walk.

Tax-free City

If you live & earn in Dubai, you don’t have to worry about different types of taxes, as Dubai has a zero tax policy for income, capital gains and many other sources. As well as, there is no property tax in Dubai which means, that once you purchase a property then you don’t have to pay any tax on that property in the future. And this is one of the best reasons to buy property in Dubai.

Now you may be doubtful about Federal Corporate Tax in UAE that will be effective from 1st June 2023. One thing here we want to make sure that Dubai's real estate market has been unaffected by this Federal Corporate Tax. So you can buy property here as you won’t have to keep paying some percentage of earnings from the property.

High standard of living

A couple of centuries back Dubai was a fishing village with a population of approx 800 - 1000. This city has emerged over time and is now globally recognized as one of the best cities thanks to its high standard of living and modern infrastructure. Dubai has every ingredient required for a global city & lifestyle hub like the best hotels, multi-cuisines dining options, beautiful beaches, entertainment & recreational zones.

When it comes to property in Dubai, real estate developers like Emaar Properties, Damac Properties and Sobha Realty etc. are offering different options for luxury residential properties in the best areas. And the best thing is that residential properties in Dubai are quite affordable in comparison to other top cities of the world, which means here you can buy affordable luxury properties.

Safety

When we talk about safety in Dubai, we are actually talking about two different types of safety (Individual Safety and Buyers/Investors' Interest Safety). This is one of the biggest factors to attract home buyers & investors. This city is known to be one of the safest cities in the world not only for the residents but for travellers too. As it has a very low crime rate, thanks to the efficient legal system and strict rules & regulations for the violators.

To protect the interest of real estate investors & home buyers, there is a strong regulatory framework under DLD (Dubai Land Department). One of the enticing factors that make Dubai stand apart is the most transparent & well-managed property market in MENA (the Middle East & North Africa) region. So, everyone feels safe here…

World-class Infrastructure

One thing is clear, world-class infrastructure & innovation helps Dubai’s economy and population to rise at outstanding rates. When it comes to infrastructure development then what’s not there - like the world’s tallest buildings, biggest malls and largest airports etc. This emirate city of UAE is also one of the biggest global hubs of technology and consider a World Leader For Artificial Intelligence. Here you can see food-serving robots humanoid robots.

Maintaining a perfect balance in the economic, social & environmental domain with a futuristic vision and non-stop development entices people from different parts of the world to invest in Dubai.

Competitive Prices And Rental Yields

Price of residential properties in Dubai are very low and return on investment & rental yields are very high if you compare it with top cities in the world like New York and London. Indeed, it’s a plus point that every location in Dubai is attractive with its own USP and every residential project here is outstanding and offers outstanding returns. And the same time, residential properties in Dubai with a low and zero property tax could lead to excellent ROI.  And if you invest in top neighbourhoods of Dubai like Dubai Downtown, Business Bay, Dubai Marina, Palm Jumeirah and Damac Lagoons and Dubai South etc. then you can expect a double-digit return on investment.

Strategic Location

Dubai city has created everything itself to stand ahead of other top cities in the world, but its strategic location is God-gifted. This location is stand equidistance from both directions East & West and work as a natural bridge between producers, manufacturers, and consumers of the world. 

Economic growth and stability

Another big reason to consider Dubai for real estate investment is rising economic growth and stability. Positioned equidistant from East and West, this region serves as a meeting point for Eastern & Western businesses. A perfect region from where you can expand your business in both directions. Thanks to the efforts of the UAE government to establish Dubai as the centre point of commerce in the middle east, its economy has since tremendously boosted in different economic sectors and experienced unbelievable capital growth.

According to different insights & data, the UAE economy is performing top of the Arab World with a growth of 3.8% in 2021 and expected to reach 5.4% at the end of 2022.

What Is The Future Of Dubai Real Estate?

Dubai is a city where the definition of luxury changes every day. And if we talk about the future of Dubai real estate on the basis of existing infrastructural, technological & economical advancements then it is very hard to predict, because the possibilities are incredible and endless.

To predict the future of Dubai Real Estate, you must understand the Dubai Urban Master Plan 2040. Under this master plan, Dubai’s many classic urban areas will upgrade to the global level.

Highlights of Dubai Urban Master Plan 2040

Upgradation of Urban Areas like Deira and Bur Dubai, Downtown and Business Bay, Dubai Marina and JBR etc.

• 5 urban centres development
• 25% increase in areas for education & health facilities
• 168 sq. km. dedicated to industrial & economic activities
• 400% increase in space for public beaches
• 105% increase in green & recreational spaces
• 134% increase in hospitality & tourism activities

To prepare Dubai real estate for Urban Master Plan 2040, the UAE government is planning to increase LTV (Loan To Value) and decrease interest rates. There are many other points of the 2040 master plan that are more exciting when you explore them. As well as, UAE Government have already introduced many different types of Visa programmes like Golden visas, 5-years visas, dual citizenship visas, remote working visas, and retirement visas to boost Dubai Real Estate.

Now real estate developers in Dubai also launching residential communities with this futuristic approach in view. As Dubai real estate is booming, investors from different parts of the world prefer Dubai over many other best options. Real estate advisers & agents also predicted that demand for residential properties would increase at a greater rate than supply in the next 10 years. As more & more people will be interested in buying Dubai Properties once they see what this city can offer.

According to the top real estate investment advisors, “low-interest rates, zero per cent property tax and many other factors, will continue to lead to the high demand of property and prices may continue to rise by over 30% in the next couple of years.”

So, undoubtedly future of Dubai real estate is bright.

How To Invest in Dubai Real Estate?

This part of the write-up is dedicated to novice ex-pats & foreigners who are planning to invest in Dubai property. Here are some of the important points they must know before starting their property buying process.

1. Finding Property

Definitely, this is the first step of your real estate investment in Dubai. Now the biggest question here is, how to find the best property in Dubai if you are living somewhere else? Read the given below points.

1.1 Determine What Type Of Property You Are Interested In

First of all you need to know, what is available for sale in freehold areas. There are studios, apartments, villas & townhouses available for sale in Dubai freehold areas. Freehold areas are the designated regions by UAE Government where foreigners & ex-pats can buy, lease or sell properties. So, you need to discuss this with your family members or investment experts and determine what property type is best for you.

1.2 Start Searching Online

As inexperienced foreign home seekers you can start your searching online. There are countless online real estate websites for Dubai Housing or Properties, to get an idea about property prices, and neighbourhoods. You can buy properties from these websites too, as these property websites belong to reputed real estate developers or their channel partners. Websites of channel partners/real estate agents comprise the best options from developers in Dubai at the best price and zero commission.

1.3 Contact Specialist Agents

No matter how smart you are, if you are looking for the best property in Dubai, you must contact specialist real estate agents. These specialist agents keep themself updated on every big or small happening in their field and can find the best property options in your budget. And as I mentioned in the upper point, most of the agents are the channel partners of big real estate developers, so you don’t have to pay any commission or fees to them.

1.4 Attend Property Fairs

As you know that infrastructural developments in Dubai are ahead of time and Dubai real estate is still relatively young. There are many developments here that are still off-plan or in planning stages. You can invest in these developments as the property price here is affordable with guaranteed high ROI in the future. So real estate developers are continuously organising property fairs to showcase these developments and meet their potential buyers. You can check the licence of real estate developers on Dubai Land Development Website and verify the projects with RERA no.

1.5 Visit Dubai

Last but important step which you should never skip. Before finalising any property in Dubai be sure that you know the locations & neighbourhoods and this is only possible if you visit Dubai. If you are looking for a ready-to-move property in Dubai then you must check as many as properties you can and don’t hesitate to ask questions from sellers.

Pro Tips:- If you are looking for off-plan under-construction properties, then you should visit the other ready-to-move properties from the same developers.

2. Meeting Eligibility

Now is one of the most important points for property buying in Dubai. There are some eligibilities which you must fulfil before buying a property in Dubai. So, let's know about these eligibilities.

2.1 Have The Required Id And Visa Documents

Thanks to the changes of law in 2002’s freehold property laws, it has become possible for foreigners to buy & rent property in Dubai. As a foreign property buyer, you just need to show your valid passport to prove your identity. You can buy property in Dubai without any residency permit but if you want to stay here then you need to take care of this.

The United Arab Emirates government has a 6-month visa as a “Property Holders Visa” for property buyers.

Property Holders Visa allows 6 months stay for foreign investors for investment investigation.

If your property has a value of more than AED 1 million then you can apply for this visa as an individual, not as a company.

2.2 Determine The Full Costs

Property buying is one of the biggest financial commitments in everyone’s life. When it comes to the property in Dubai you need to be sure whether you can afford it or not. Property not only comes with an asking price but there are many other costs too that you should include in your budget.

Extra charges you need to consider:-

2.3 Get A Mortgage In Dubai

For foreigners, there are several eligibility criteria to obtain mortgages in Dubai. You will need to submit several documents and some additional documents based on your nationality and the property type you are purchasing.

Generally, foreign applicants will have to provide the given below documents for the home loan in Dubai.

• Passport as Identity proof
• Bank statement as proof of funds

Additional documents to get the home loan for foreign home buyers

• Tax returns in some cases
• Salary slip (for the salaried person)
• Business licence & transaction statements (for the businessman)
• Details of any existing loans

3. Buying “Off-Plan” Property

Off-plan property is a perfect decision, especially for foreigners, but it can be a cause of concern if you are not clear about the process & important steps. So, let’s talk about the process & steps.

3.1 Submit A Reservation Form

So far you know how much you can spend and find a perfect off-plan property in Dubai. Now the first step you need to take is submitting a reservation form. This reservation form will explain the terms & conditions, payment plans, and other important information about developments, and seller & buyer information.

Important points to keep in mind:-

• You need to submit copies of your Passport & Visa with the reservation form.
• You must check the property status (leasehold or freehold) before submitting the reservation form.
• You must understand the details in the reservation form before signing & submitting it. (don’t hesitate to take the help of a professional).
• Check the RERA registration no. of the property.

3.2 Pay The Reservation Deposit

With the submission of the reservation form you will have to pay the reservation amount (booking amount). This amount is mentioned in your reservation form, it will generally range between 5% to 20% + 4% DLD charges.

Note: When you are paying a reservation deposit, just check that payments you make are transferred into RERA-approved

3.3 Complete A Formal Sales And Purchase Agreement

A legal binding contract is a formal purchase agreement in written form between two parties (seller & buyer). Make sure this agreement is the date by which the possession handover should be done. As well as, check the penalties for the developer if they fail to fulfil the commitments. In this case, an experienced lawyer can help you in understand the contract, and check every small detail, term & condition.

3.4 Transfer the deeds

To complete the off-plan property buying process you must transfer the deeds. For this, you have to pay 100% of the property price. If you fail to do so then deeds will not be transferred. If you are buying ready-to-move property then the transfer will happen in the Dubai Land Department office. And if it is near the possession date then the transfer will happen in the developer’s office.

4. Buying “Resale” Property

Resale property is the perfect choice for individuals who can’t wait for possession. And the good thing is that, you don’t have to pay rent on other apartments, just pay the property price and start living. But just like off-plan residential properties, there are some steps that you need to follow. So, let’s start…

4.1 Make A Memorandum Of Understanding

The first & important step of buying resale property in Dubai and many other regions. To buy a resale property you must agree with the seller’s terms, and record this in a Memorandum of Understanding with the signatures of the buyer & seller. MoU is the basic document that outlines terms & conditions with the date of final purchase.

4.2 Pay The Initial Deposit

Just after the signing of the MoU buyers have to pay the initial deposit (booking amount). This initial deposit (generally 10% of the total amount) is non-refundable under any conditions (sometime depends on the bonding between buyer & seller).

4.3 Obtain The Deeds

With an agreement & arrangements of funds you can approach the seller to complete the deal and get the possession. As a foreigner, you will be required to pay the complete property price, just like off-plan properties. To obtain the deeds, you may need to take an appointment with the DLD office and present there with all necessary documents.

Can A Foreigner Buy A House In Dubai

In 2022, the UAE government opened the door to real estate investment for foreigners and since then the numbers have continued to grow at a phenomenal pace. During 2001-02 Dubai was home to almost 25% of cranes in the world, which shows the rapid development of the region.

Dubai is one of the most business-friendly counties in the world, many MNCs and start-ups, have started their operations there taking advantage of the affordable workforce and its position as a global travel hub. Anyways, let's talk about foreign investors in Dubai.

Where Can Foreign Investors Purchase Property In Dubai?

As you know that foreign investors can buy property in Dubai. But not in every location. Here, foreign investors can buy properties in designated locations known as freehold areas. Fortunately, these freehold areas in Dubai are some of the most sought-after communities and boast some best property types to choose from.

List Of Freehold Areas In Dubai, Where Foreign Investors Can Buy Properties.

Now you wants to know that, which is the best freehold region in Dubai? So, let’s find out the best communities in Dubai through facts & figures.

According to the reports & data published by top real estate websites in  Dubai, Q2 of 2022 has seen high online searches for Dubai Marina, Dubai Downtown, Arabian Ranches III and Palm Jumeirah.

Average Property Price Of 1 Bedroom In The Top 3 Communities

• Dubai Marina - 1,050,000 AED
• Dubai Downtown - 1,600,000 AED
• Palm Jumeirah - 20,500,000 AED

But foreign investors not only preferring 1 Bed apartments but a wide range of property types like 2/3/4 Bed Apartments, Penthouse, Villas, & Townhouses.

Benefits Of Buying Property In Dubai For Foreigners

There are many reasons or benefits of property buying in Dubai for foreigners. Let’s discuss the top benefits in detail.

1. Economic Stability

Many novice real estate investors prefer to invest in off-plan residential projects that are affordable in price, to get maximum return. But logically speaking, the return on investment highly depends on the economy of the country. And this is one of the biggest benefits of Dubai real estate for foreign investors. The rising economy of Dubai has made this city the centre of attraction for everyone. The best & modern amenities & contemporary structural design in Dubai proportionally boost the value of residential properties

2. Technological Advancements

When it comes to technological advancements, Dubai is the only city in the Middle East that stand side by side with many top cities of the west. The government of Dubai persistently strives to become a technological advance city by frequently adopting modern technology.  You can experience the same in Dubai’s entertainment zones, public transportation systems and communities.

3. A High-Standard Of Living

Dubai is the only city in UAE that presents a high standard of living and ranks high among the top cities of the world. These living standards are based on various types of facilities & services like healthcare, education and infrastructural developments. So, investment in Dubai properties is equivalent to investment in future.

4. Top-Notch Safety And Security

This city is considered one of the safest places in the world. That’s why more and more families around the world prefer to settle in Dubai. The safe & crime-free neighbourhood of the city is one of the biggest benefits for inhabitants.

The government of Dubai has launched Al Ameen Service, where residents can report crimes online. As well as, police service here is just a phone call away with frequent patrolling in every corner of the city to maintain peace.

5. Dubai Property Visa

One of the best benefits for foreign property buyers in Dubai is that they can get a residency visa in UAE. Currently, foreign real estate investors can apply for 2 types of visas. Both types of visas have different eligibility criteria.

Golden Visa or Long Term Residency Visa For 10 Year

• Investment in UAE worth more than 10 Million AED
• An owner of the company within UAE with the capital of more than 10 Million AED
• A partner of the company with UAE with the share of more than 10 Million AED
• Investment funds should not be loaned  

Golden Visa or Property Investor Visa For 5 Year

• Investment in UAE worth more than 2 Million AED
• Investment funds should not be loaned

Golden Visa or Property Investor Visa For 3 Year

• Investment in UAE worth more than 0.7 Million AED
• Investment funds should not be loaned

6. Rental Yields

One of the biggest benefits of buying property in Dubai is high rental yields. Not only Dubai but the entire UAE ranks top with the world’s highest yields.

7. Wide Range Of Options

Dubai real estate presents something for every property buyer & investor. Here you can buy an affordable apartment in the middle of the city and a super luxury villa in a peaceful yet well-connected city. With a new launch of residential property every day, it is getting very complicated for buyers to filter out the best options.

What Is The Eligibility Criteria For Foreigners Buying Property In Dubai

As you know that Dubai real estate is open to foreign investors. So, an foreign investor required no visa while they investing in property. But, they must have a valid passport for buying property as their identity proof.

Now you must be thinking that “can foreigners get mortgage in Dubai”?

Yes, foreigners can get mortgages to buy property in Dubai only from the banks operating in the UAE. But a foreigner in Dubai have very limited options for mortgage in comparison to UAE’s residents & expats. Different banks in UAE have their own criteria to provide mortgage for the foreigners depends on the several factors country, monthly income and more.

So, the basic eligibility of property buying for foreigners in Dubai is a valid passport.

Where To Invest in Dubai Real Estate?

Dubai has every ingredients for a luxury & peaceful life. People usually buying property here to lead an exclusive lifestyle with family or for mid or long term investment & rental yield. Certain areas in Dubai recorded excellent YoY growth in property value. Let’s explore best areas in Dubai for real estate investment.

Palm Jumeirah

This is one of the largest man-made island in the world. This palm tree-shaped island have luxurious apartments, villas & townhouses for sale. Developed & maintained by Nakheel, this community have the best amenities & modern infrastructure for the residents. Palm Jumeirah comes in Dubai’s top 5 areas for buying properties with an average price of AED 1,400 per sq. ft. for 1-bed apartments which is quite affordable if compared to properties in New York & London with the same level of luxury & features. This community is also most preferred for sea-facing villas with an average price of AED 2, 110 per sq. ft.  If we talk about ROI in Palm Jumeirah then the 2-bed apartment is considered as most profitable with an ROI of 6%. As well as, the annual average rent for 1 Bed Apartment is AED 65,000.

Dubai Marina

This region comprises many skyscrapers in Dubai comprises apartments, penthouses and hotels. Marina Shores is one of the best & latest residential communities from Emaar. This 53-floor tower comprises 1 to 5 Bed apartments.

Most people who are on business trips, tourists and home buyers in Dubai prefer to stay in Dubai Marina. This community is positioned on the beach with 3 kilometre-long shoreline and in close proximity to Dubai Internet City and Dubai Media City. That’s why Dubai Marina is the best choice for real estate investment.

Downtown Dubai

This community is called the heart of Dubai comprising mixed-use developments. Downtown Dubai is famous in the world for Burj Khalifa and a range of entertainment avenues. And if you are looking for property in Dubai then we must appreciate your choice because this community offers the best ROI in residential properties.

Average ROI in best residential developments of Downtown Dubai:-

• Burj Khalifa - 6% ROI
• Burj Views - 5% ROI
• South Ridge Towers - 5.50%
• The Address Residences Fountain Views - 7%
• The Residences - 5.50%

Barsha Heights

Positioned along Sheikh Zayed Road, Barsha Heights was previously known as TECOM. At Barsha Heights, you can easily find a studio to 3-bed apartments for sale at very affordable prices. Here you can buy a studio apartment at AED 425K and starting price of 1 Bed Apartment is approx AED 570K. The price of 2 Bed apartments at Barsha Heights is ranging between AED 850K to AED 1.40M and 3 Bed Apartment are available at AED 2M. If we talk about ROI then the average ROI for residential properties in Barsha Heights is approx 6.5%.

The availability of schools, hospitals, public transportation and close proximity to Dubai Marina, Dubai Internet City, Dubai Media City and Dubai Knowledge park makes it the best place for family living.

Dubai Sports City

This community or locality comprises something for every home seeker & investor. You can buy a studio, 1 bed, 2 beds & 3 beds apartment, townhouse & villa. These units are available in different sizes, styles and structural designs. Most of the residential developments in Dubai Sports City have everything for a convenient & comfortable life: gym, swimming pool, retail complex and security features etc. The average ROI for apartments in Dubai Sports City is approx 7% and the average ROI for villas is approx 5.5%.

The Springs

Just at its name defined “The Springs” is a peaceful community of luxury villas, adequately away from the hustle & bustle of Dubai. This community comprises lush green surroundings, lakes, and low-rise luxury homes, giving the community a magical look that attracts home buyers & investors. Most of the inhabitants of this community are Emiratis. The average price of 3 Bed Villa here is AED 2.3Million.

Can I Get Residency If I Buy Property In Dubai?

Yes, you can, if you are a GCC national but if you are a non-GCC national then it is not possible. But non-GCC nationals can obtain residency visas, property value must be at least AED 1 million. As a property buyer and holder of a residency visa in Dubai, you can also sponsor your family members. This country offers several types of residency visas for property buyers like 2-year renewable visas, 5-year residence visas, and also 10-year residence visas.

What Are The Property Requirements In Order To Get A Residency Visa

First & biggest property requirement to get a residency visa is - it must be residential, not commercial. Only residential property buyers in Dubai are eligible for residency visas. And this property should be in areas, where the holding of freehold property is allowed for foreigners.

The next biggest requirement is, that the value of the property should be AED 1 Million or more. If any property has 2 or more buyers then each buyer’s stake must be AED 1 Million or more.

In 2019 biggest amendment was done to this law. Before 2019 this was applicable on a single property with the required minimum value. But after the amendment, you can buy 2 different properties to meet the minimum value requirement. As well as, to meet this requirement you can buy a commercial space or office in Dubai.

The property must be ready-to-move. Under-construction units with a value of AED 1 Million or more, cannot make you eligible to get a residency visa, you have to wait for construction completion.

How Long Is The Validity Of This Type Of Visa?

As you know, the validity of a residency visa depends on the value of the property with the option for renewal.

What documents are required?

Documents that are required to obtain a residency through property investment are given below.

• Title Deed
• Contract of sale and purchase
• Passport copy of the property owner
• Current visa copy (tourist or visit)
• Photographs (passport size)

Is Dubai Real Estate A Good Investment?

Yes, Investment in Dubai real estate is a good choice and this is why more & more people prefer to buy property here rather than in other parts of the world. Buying property in Dubai actually secure your future, it is a location where you just buy a property and let its value rise meanwhile enjoy outstanding rental. Let’s discuss this in detail.

Buying Property in Dubai Costs Less

As we mentioned in the upper points that properties in Dubai are very much cheaper than other top locations in the world. If we talk about the top expensive property locations in the world then London comes at the top place with an average per square feet price of $3,208 and then Hong Kong, New York and Singapore with an average selling price of $2,119, $1,719 & $1,417 per sq. ft. respectively.  An average property price in Dubai is $468 per square feet, a big difference with maximum return.

Buying A Property In Dubai Offers Higher Rental Yields

Let’s talk about another best reason that makes Dubai the best investment choice Best ROI and Outstanding Rental. According to different reports & & data, Hong kong which is the most expensive city for property investment plus property taxes are very higher presents only 2.82% rental yield, Singapore offers 2.83%, London offers 3.21%, New York 3.91% and Dubai again sits at the top with a rental yield of 5.82%.

So, real estate investment in Dubai is the best decision without any arguments.

Dubai Real Estate Laws And Regulations

Now we all admit that Dubai is one of the best cities not only in UAE but all over the world. It is considered a top real estate investment and holiday destination due to its contemporary architectural design and high-rise towers. The world’s wealthiest people choose Dubai to buy their super luxurious homes.

Dubai State Government has introduced real estate laws and regulations for home buyers and investors from all over the world. These laws and regulations take care of every legal concern concerning the buy, sell, and rent. Let’s talk about these rules & regulations in detail.

Real Estate Ownership In Dubai For Foreign Nationals

Law number 3 of 2006 Foreigners (non-UAE/GCC nation als) can only buy property in freehold areas with leasehold up to 99 years. This rule also applies to foreign companies, subject to the DLD’s guidelines on the title to real estate that is applicable from 1 January 2011. As well as, any foreigner can acquire a lease in the regions that come not under these appointed areas (Law Number 7 of 2006).

Transfer fees payable by foreigners in Dubai

4% DLD fee of the total value of the property is payable to the Dubai Land Department to register a transfer of residential property in Dubai. This fee is the same for everyone whether you are a foreigner, UAE/GCC nationals, or any company buying the property.

As well as, after the registration of the transfer, any alteration in the shareholding (at any level up to the ultimate beneficial owner) of the foreign company buyer is considered a transfer of the property requiring payment of an extra transfer fee at the DLD.

Why A Buyer Or Investor Must Be Aware Of Dubai Property Laws?

Real estate investors & buyers from different parts of the world show huge interest in Dubai properties. But most of these buyers are unaware of the local rules & regulations of Dubai real estate and make many mistakes. There are many laws in Dubai real estate that protect the interests of buyers & sellers of the property, self-help is the best help and one must know these rules before buying property.

Dubai Property Law

Transactions in Dubai real estate are controlled by some rules & regulations meant to protect the interest of foreign property buyers. Law No. 5 of 1985 controls civil transactions and holds many provisions relating to property and provides protection of private property and laws relating to the property title.  DLD (The Department of Land and Property in Dubai) create the necessary rules & regulations for real estate in Dubai. Founded in 1960 with the intention to increase transparency & faith in Dubai Real Estate.

Real Estate Law Number Seven

The Government of Dubai introduced Law No. 7 of 2006 to limit the restriction on Non-UAE & GCC nationals related to property ownership in Dubai. In the absence of this law, foreigners were not able to hold the owner of any property in Dubai. But with the existence of this law now Foreigners can also take ownership of property on lease or rent. The maximum lease duration for any property is 99 years which must get approved by the DLD department.

Rental Property Laws

Real Estate Regulatory Agency (RERA) of Dubai has introduced many laws to protect the interest of landlord-tenant. Some of the important laws are given below:

Landlord rights

• Article 15 defines that, at the time of handover to the tenant, the property must be in good condition and permit its full use according to the contract.
• According to Article 16, repair & maintenance work in the rented property is the responsibility of the landlord.
• According to Article 17 - a landlord shouldn’t make any modification or conduct renovations in the property that would directly or indirectly affect the interests of the tenant;
• According to Article 18, a landlord has to provide all the required licences & permits to the tenant for any relevant modification or construction activity on the property.

Tenant Rights

• According to Article 19 if the tenant wants to do some modification to the property then the landlord has to provide permission & licenses if required;
• According to Article 20, while renting the property the tenant has to pay a reimbursable amount as a security deposit. If the landlord refuses to give back the deposit either fully or partially, then the tenant can knock on the court door.
• Article 21 defines that the tenant must hand over the property to the landlord in the same condition they have received it during the signing of the agreement.
• Article 22 clears that tenant must clear all the taxes & charges of government departments and entities associated with the use of the property; this also comprises sub-lease, except if the conditions are different in the rental agreement;
• According to Article 23 - while leaving the property and handover to the landlord, the tenant must dismount the structural modifications they have made.

Inheritance Property Law

As the word “inheritance” define transferring of one’s assets to their descendants or legally entitled beneficiaries. But what happens if the deceased person has not written any will? If this happens in UAE then an Interstate Court decides how a property should be distributed in the middle of family members or state will owe that property. That’s why if you are foreign investors or home buyers in Dubai then you must have a will to transfer your assets to the right persons.

Conclusion

Before investing in a new place it is very important to explore the localities and get familiar with the local rules & regulations. Here in this blog, we have tried to cover every important aspect that you must know before real estate investment in Dubai. Anyone who is going to buy property in Dubai now can decide the location, property type and community. As well, other information like home buying tips and landlords & tenant rights etc. makes you more knowledgeable about Dubai real estate investment.

If you have more questions in mind then you can seek Dubai Housing’s expert advice. Dubai housing is your home buying or real estate investment partner in Dubai, helping you find the best property in Dubai within your budget and expectations.

How?

Well, Dubai Housing is a channel partner of many reputed real estate developers in Dubai like EMAAR, DAMAC, Sobha Realty, Azizi and Nakheel etc. with a strong database of off-plan & ready-to-move properties. You can call us or fill query form, we at Dubai Housing would be happy to assist you.