No, anyone can buy a property in Dubai across all designated freehold and leasehold developments either primary sales directly from the developers or in the secondary resale market.
Freehold properties are most commonly available when buying though Exclusive Links Real Estate. This is when you own the structure and land in perpetuity. However one might occasionally find a property for sale in a leasehold development which implies that a third party has an interest in the property, usually the land. Leasehold contracts are normally renewable after 99 years.
Often it is quite the opposite where properties available in the resale market may be cheaper than if you were to purchase directly from a developer. Make sure you deal with a reputed and registered real estate brokerage firm like Exclusive Links Real Estate and make sure you are aware of your financial commitment and the structure of the sale before you buy. Minimum selling prices are often set by developers however individual sellers can transfer ownership and conclude on a sale at any reasonable & agreed sale price.
Exclusive Links Real Estate partner with preferred mortgage brokers who will guide you through the complete process and advise you on which lender or terms will suit your individual requirements and investment. Competitive rates and terms are available and linked to other more mature markets. Contact us today for a free assessment and qualifying information.
The standard minimum deposit is 10% of the purchase price, payable on signing the contract of sale. On secondary resale’s the balance payment is made on transfer of the ownership and dependent on the terms of the contract but usually 30 - 60 days later. On primary sales, there are staged payments made at regular intervals to the developers escrow account through to completion. Managers cheques are a must to ensure effective transfer on secondary sales, however, feel free to contact Exclusive Links Real Estate for the financial obligations on each project or purchase.
In general, due to our complete service and professional partners, purchases are extremely swift especially when there are no mortgages involved. Completion of a sale and transfer of ownership can be completed in as little as 2 weeks. If mortgages are involved on Seller and/or Buyer side then allow 45 - 60 days to finalise.
Reasonable service charges are payable to all developers/ homeowners associations for maintenance, landscaping and refuse collection. This charge varies according to the development and is normally calculated on the built-up area of your home.
As the new Owner, you inherit the Tenant and the terms and conditions of the tenancy agreement. A prorated rent back figure can be calculated as part of the contract of sale and ensure that all future rental cheques are changed to your name as the new Owner. The security deposit paid by the Tenant to the Landlord (Seller) at lease commencement also needs to be transferred to the new property Owner whom will take over as the Landlord and responsible to return the deposit to the Tenant when they vacate.
If you are not able to be in Dubai then a Power of Attorney (POA) can be used to buy property on your behalf. A POA can be arranged in person at Dubai Courts, internationally or remotely online without leaving your home. Exclusive Links will guide you through this process when purchasing through our company.
When buying on the resale market there will be a real estate agent commission that is paid to the broker handling your transaction and this is normally 2% of the purchase price or is charged as a minimum fixed amount. There is also a AED 4000 + 5% VAT professional fee charged for the sales progression of your contract and transaction. As a Buyer, you will also be expected to pay a transfer of ownership fee to the Dubai Land Department (DLD) which is 4% of the purchase price. There is a set fee of AED 4000 payable to the Transfer Office that completes the formalities of the transfer. Both these costs may be split between the Seller and Buyer depending on the final negotiation of the sale. While there are no capital gains taxes, 5% VAT is applicable (effective from 1st January 2018) on agency commission and transfer office charges as the service providers. If your property is mortgaged you will expect to pay a further 0.25% of the value of the loan as mortgage registration however loans and mortgages are exempt from any tax. If you are needing a POA representation there will be a fee of AED5250 and this is per induvial and per property. If buying in the name of a company and a POA may also be required, further fees may apply and are available on request.
The Dubai Government are offering property visa to investors who buy in Dubai subject to conditions. For completed properties purchased over and above a value of AED 750,000 you can apply for a 2 year property visa and over and above a value of AED 2M you can apply for a 5 year property visa. The property Owner can sponsor additional family members including maid/driver. This visa does not permit you to work in Dubai. Exclusive Links have qualified and reputable partners who can assist with applications.
Exclusive Links Real Estate have the inside market knowledge to know which developments project the most substantial gains. Investors in Dubai enjoy high capital growth and rental yields of anywhere between 6-10% which makes Dubai a highly sought after property location. With Government initiatives and regulations to secure & protect the real estate industry along with the geographical position of the U.A.E attracting international investors, Dubai is a city that can realize the dream.
