All you need to know about buying property in Dubai
The company presents residential and commercial real estate projects on the Russian market from the largest developers of the UAE: Nakheel, EMAAR, Dubai Properties, ETA Star, Trident International Holdings, IFA Hotels & Resorts, Damac Properties, Select Group, etc.
Dubai is a unique place on earth. An amazing city that has challenged the desert and the human imagination. Dubai is a world-famous tourist destination for family and outdoor activities, alluring the world with its warm sunny climate, white sandy beaches and the azure waters of the Persian Gulf.Today, vacationers are joined by those who wish to live in a modern metropolis, which has all the advantages of a luxury seaside resort. Given that a flight to Dubai, say, from Moscow takes only 5 hours, and both cities are in the same time zone, it becomes clear interest in this type of investment. In this article, we, with the help of specialists from the Dubai Real Estate Agency IMEX REAL ESTATE, have tried to summarize the answers to the most important and frequently asked questions about buying property in Dubai.
Can foreign nationals buy property in Dubai?
Citizens of foreign countries who are not members of the Arab Gulf Cooperation Council (GCC) are entitled to acquire full ownership of real estate in Dubai ("freehold") only in specially designated territories, in the so-called freehold zones. The list of such zones is established by Decree of the Ruler of Dubai No. 3 of 2006. These include almost the entire territory of "new Dubai", including such popular areas as Dubai Marina, The Palm Jumeirah, Emirates Living, Jumeirah Lakes Towers, etc.
Is Dubai Property Registration Required and Who Does It?
Real estate rights registration in Dubai is handled by the Dubai Land Department. Today, property registration, long-term leases, real estate pledges, etc. are subject to registration in the corresponding register. Registration is carried out, both for ready-made and commissioned objects, as well as for those under construction (“off-plan”). In the first case, the owner receives a registration certificate for real estate (Title Deed), and in the case of registration of property not yet built - the initial contract of sale (Initial Contract of Sale). When registering ownership in the Dubai Land Department, a registration fee of 2% of the value of the property plus a small fixed payment for the preparation and printing of the necessary documents is paid.
Can a property owner in Dubai rent it out?
Relations between landlords and tenants in Dubai are regulated by Law No. 26 of 2007. According to the current legislation, any owner of real estate in the territory of the Dubai Emirate has the right to lease his property for a period of at least 1 year. In the case of renting for a period of less than a year, such a rental is considered short-term and requires the owner to have the appropriate license (for the activities of a hotel or hotel apartments). In this case, usually, the owners turn to a licensed management company, which they transfer their property to management, and which already rents real estate on its own behalf.
What taxes should a property owner pay in Dubai?
There are no property and income taxes in the United Arab Emirates. Therefore, the possession of real estate in Dubai, as well as the receipt of income, for example, from its rental, does not entail any tax consequences for the owner within the UAE jurisdiction. However, you must understand that the owner of the property is responsible for its proper maintenance and is obligated to pay the costs of its operation (Maintenance Fees), established by the service organization. As a rule, such payments are charged annually a year in advance and for Dubai, depending on the project, they are somewhere between 20 and 80 dollars per square meter. m per year.
How is the purchase of real estate in Dubai?
In its most general terms, the procedure for buying property in Dubai in most cases is as follows:
1. The buyer selects the property that he wishes to purchase.
2. The seller and the buyer sign a contract of sale, which reflects all the parameters of the transaction, in particular:
- the value of the acquired property,
- additional payments associated with the transaction (commission of agents, payments to the developer, registration fee, reimbursement to the seller of the costs of maintenance paid in advance, etc.),
- the period during which the purchase and sale transaction must be completed,
- terms and procedure for making settlements,
- responsibility of the parties in case of failure to fulfill the conditions of the contract.
3. When signing the sales contract with the seller, the buyer makes a deposit (usually 10% of the value of the acquired property).
4. The seller draws up a permit from the developer for the sale of his property (No Objection Certificate, NOC), which is necessary for registering the transaction with the Dubai Land Department.
5. After the permission to sell is obtained, the seller and the buyer register the property in the name of the new owner in the Land Department. Usually, at the time of registration, transactions are also settled.
Is it possible to buy agents without buying real estate in Dubai?
Almost no real estate transaction is complete without agents in Dubai, as indeed in the rest of the world. It is in real estate agencies, most often, clients who want to rent, rent, buy or sell real estate apply. Working in the market, agents, like no other, own information about who, what and how much they want to sell or buy. However, not all market participants are duly registered and act legally.
What are the requirements for real estate agents in Dubai?
First of all, it must be borne in mind that, in accordance with the Order of the Chairman of the Dubai Land Department No. 85 of 2006, all real estate agencies operating in Dubai must be licensed for the type of activity and must be registered in a special registry of the Office for Monitoring Dubai Real Estate Market (Real Estate Regulatory Autority, RERA). At the same time, all agents of the company must undergo an appropriate training course and receive personal brokerage cards with an individual number. Such measures are primarily aimed at protecting the rights and interests of clients and are designed to minimize the possibility of fraud on the part of agents.
Why is it important that an agent is properly registered?
Dubai's real estate market is multinational. Buyers and sellers are usually foreign nationals. Where can they look for each other in case something goes wrong? Therefore, a real estate agency with a registered office in Dubai is a serious guarantor of the transaction. In addition, an important factor is the requirement of legislation on 100% ownership of such a company by local residents - citizens of the UAE.
Indeed, in most cases, the real estate agency acts as a third party in the transaction between the seller and the buyer, guaranteeing the interests of both. For example, as a rule, it is the agency that accepts the deposit from the buyer and holds it until the final settlements and registration of the transaction. For the buyer, this guarantees a return of the deposit if the transaction does not take place due to the fault of the seller. And the seller, in turn, can count on the payment of the deposit amount as compensation if the transaction does not take place due to the fault of the buyer.
YOU CAN GET ANY ADDITIONAL INFORMATION FROM IMEX REAL ESTATE SPECIALISTS BY TEL. IN MOSCOW +7 495 9842053, FREE TELEPHONE IN THE UAE 800-IMEX (800-4639) OR SEND AN E-MAIL REQUEST TO THE [email protected] ADDRESS
