To Buy
Buying in Dubai
Who Can Buy?
Any investor, overseas or resident, can purchase in any of Dubai’s many freehold and leasehold developments.
Freehold or Leasehold?
Freehold is available in most development areas. Perpetual Real Estate will be happy to help you find the right location at the right price. In some cases there is a mixture of freehold and 99-year leasehold property.
Mortgages
Mortgages are available on a 10 to 25-year basis through Perpetual Real Estate’s major banking partners. Interest rates can be linked to those in the United States and the UAE market.
Terms of Payment
Generally speaking, a deposit representing 10% of the purchase price is required at the contract-signing stage for all new development properties. This is followed by what are known as stage payments that are made at regular intervals through to completion or as the build construction progresses.
Banking
Buyers do not need a local bank account to arrange property purchases. Payments can be received from your own bank in your home country in the form of a Telegraphic Transfer.
Purchase Times
Purchases normally take no longer than two weeks to complete.
Government Tax
There are currently no government taxes of any kind when purchasing a property in Dubai. Nor is there a Capital Gains Tax. When the Dubai Lands Department registers title, buyers will pay a 1.5% tax based on the purchase price of the property. If they have a mortgage, they will pay 0.25% of the value of the loan.
Development Service Charges
Service charges are payable to developers for maintenance, landscaping and refuse collection etc. This charge varies per development. In some cases as low as 6dhs/sqft owned to 20dhs/sqft.
Residency
The Dubai Government issues residence visas to new property-owners and their immediate family. These will need to be renewed every three years as per the latest immigration regulations. This is not a work permit. It merely allows you to stay in the UAE with a residency status.
Re-sale
You can sell your property or assign your agreement to anybody provided you go through the proper channels. Once a sale/transfer has been executed the new owner takes over the payments to be made to the developer.
Appreciation
Property prices in Dubai have experienced considerable growth, and are forecast to remain this way for some time. This can be clearly seen if comparing current prices with those of 6 months ago. Like all investments, however, property prices can go down as well as up.
Popular Areas
The projects in vogue today are The Palm Jumeirah, The Palm Jebel Ali, the Dubai Marina area (Tridents MarinaScape, Bayside and Grand Residence for example).
