Frequently Asked Questions
What is a property transfer fee in Dubai?
A property transfer fee is a mandatory fee charged by the Dubai Land Department (DLD) when a property ownership transfer occurs. The standard rate is 4% of the property value, plus an AED 580 admin fee for individuals or AED 4300 for companies.
Can I get a residency visa when buying a property in Dubai?
Yes, property buyers in Dubai can qualify for a Golden Visa (10 years) or a 3-year property investor visa, depending on the property's value. To be eligible, the property must be worth at least AED 750,000 for a 2-year visa and AED 2 million for a Golden Visa.
Do I have to pay tax on Dubai property if I live abroad?
No, Dubai does not impose income tax or capital gains tax on property ownership, making it attractive for foreign investors. However, if you reside abroad, you should check your home country's tax laws.
What is the process of buying property in Dubai?
The process involves selecting a property, signing the sales agreement (MOU), paying a deposit (typically 10%), applying for a No Objection Certificate (NOC), and transferring ownership at the DLD. The entire process typically takes 30-45 days.
How do mortgages work in Dubai?
Home loans are available to UAE nationals and expatriates, with loan-to-value (LTV) ratios of up to 80% for UAE residents and 50% for non-residents. Mortgage terms typically range from 5 to 25 years, and interest rates vary between fixed and variable rates.
What happens if a developer fails to complete a project on time?
If a developer delays a project beyond the contractual timeline, buyers may be entitled to compensation or a refund under the Real Estate Regulatory Agency (RERA) regulations. Buyers should check if the project is registered with RERA.
How much can I borrow for a mortgage in Dubai?
The amount depends on your income and residency status. Generally, expatriates can borrow up to 80% of the property value for their first property if earning over AED 15,000 per month.
What is driving Real Estate demand in Dubai?
Demand is fuelled by tax-free investments, high rental yields (5-8%), Golden Visa programs, strong infrastructure, and global connectivity. The Dubai 2040 Master Plan further enhances long-term growth potential.
What is freehold property?
Freehold property refers to full ownership rights, allowing buyers (including foreign nationals) to own the land and unit indefinitely. Freehold areas include Downtown Dubai, Dubai Marina, Palm Jumeirah, JBR, and more.
How does renting out a property work in Dubai?
Owners can lease their property by listing it with real estate agencies or platforms like Airbnb. Rental agreements must be registered with Ejari, and tenants typically pay 1 to 4 cheques per year, along with a security deposit.
What is the difference between freehold and leasehold property?
- Freehold: Full ownership for life.
- Leasehold: A 99-year lease granted to the buyer, typically in non-freehold areas.
What are the fees involved in a real estate transaction?
Buyers should budget for:
- 4% DLD transfer fee
- 2% agency commission
- AED 5,250 trustee office fee
- AED 580 title deed issuance fee
- Mortgage registration fee (if applicable)
What is an Ejari, and is it required?
Ejari is a mandatory tenancy contract registration system regulated by RERA. Without Ejari, tenants cannot set up DEWA (electricity & water) or apply for family visas.
Can I sell my off-plan property before completion?
Yes, off-plan properties can be resold if the developer allows it. Typically, you must have paid 30-40% of the property value before listing it for resale.
What is the RERA rental increase rule?
RERA regulates rental increases based on its Rental Index:
- No increase if rent is within market rates
- 5% increase if rent is 11-20% below the average
- 10% increase if 21-30% below the average
- 15% increase if 31-40% below the average
- 20% increase if more than 40% below the average
What are service charges, and who pays them?
Service charges cover building maintenance, security, and common areas and are paid by the property owner. Charges vary based on location and property type.
What is the DLD waiver, and how does it work?
Some developers offer a DLD fee waiver (4%) as an incentive for buyers, reducing upfront costs.
Can foreign companies own property in Dubai?
Yes, a foreign entity can own property in Dubai, but it must be registered with JAFZA or DIFC to hold a title deed.
What happens if I don’t pay service charges?
Failure to pay service charges may result in fines, legal action, and restricted access to facilities.
How can I register my property with DLD?
Property registration is done through Dubai Land Department (DLD) by submitting the sale agreement, paying the required fees, and obtaining the title deed.
What is the best area to invest in Dubai?
Top investment areas in Dubai include:
- Downtown Dubai: High rental yields, premium properties.
- Dubai Marina: Popular among expats.
- Business Bay: Ideal for short-term rentals.
- Jumeirah Village Circle (JVC): Affordable and high ROI.
- Palm Jumeirah: Ultra-luxury segment.
What is the Secondary Property Market?
The secondary property market refers to resale properties that have been previously owned, unlike the primary market, which consists of properties sold directly by developers.
What is the VAT on property transactions in Dubai?
- 5% VAT applies to commercial properties.
- 0% VAT on residential property sales and leases.
- 5% VAT applies to short-term rentals (less than 6 months).
Is it safe to invest in Dubai real estate?
Yes, Dubai has strong regulations, high rental yields, and no capital gains tax, making it an attractive market for investors.