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Purchasing Property Guide
This page contains commonly asked questions about purchasing property in Dubai.
How easy is it to buy and sell property in Dubai?
Very easy, but the present system for buying and selling property is not one which is likely to be familiar to
many global investors. Typically most countries that use Common Law require a lawyer to represent each party
or a public official in Civil Law jurisdictions. In Dubai you can buy straight from the developer “off-plan” for little
or no fees; alternatively you can buy direct from another private vendor in the secondary market, whether the
property has been completed or not. There is an extremely buoyant market as demand currently exceeds
supply and you will be able to sell your property in the secondary market before completion or after the property
has been built. However many property developers require their consent to sale and purchases, and may also
charge a transfer fee of between 1% and 3%.
How do I buy an apartment?
Once you have decided which apartment you wish to purchase as your dream home or investment, please
contact us for a reservation form. This will need to be completed and faxed back with clear copies of buyer(s)
passports and payment proof for the deposit. Payments will be made directly to the developers with no fees
payable to Dubai Waterfronts. The price you pay is the price direct from the developer!
For the most securest, efficient and money saving ways of making money transfers to foreign bank accounts in
different currencies, we recommend you open a FX (Foreign Exchange) account. On a deposit of AED70,000,
you could save several hundreds of £/$/€, etc. We work in partnership with several reputable companies in the
UK. Please contact us for information.
Are there any Legal costs in purchasing a property?
No, there are no legal costs involved since your contract is direct with the developer. There are only legal costs
incurred if you decide to ask a lawyer to act on your behalf. Please contact us for details if you wish to use a
solicitor who specialises in international law.
What deposit is required?
Normally for apartments the developer asks for either a 10%, 15% or 20% deposit. The remainder of the funds
will be required over the building term in stage payments, often 10% every three months for apartments. You
will find exact details of payment plans on the pages detailing the individual developments
How secure is my investment?
With recent changes in the Dubai Property Law, all developers are required to have ESCROW accounts for
each development, to securely hold the funds for that specific development.
Can I get a residency visa when I purchase a property?
It is possible to apply for a residency visa when you purchase a property, were it is being offered on that
specific development. NOT all development offer resident visas.
All visas are sponsored by the property developer and are renewable every 3 years at a fee. You are only able to
get a visa for the family if the property which you are purchasing is big enough to house the family comfortably. i.
e. 2 bedrooms will only be for adult and 2 children maximum, studio flat will only get a visa for a single person
or couple. These visas will only enable you to reside in Dubai, not work here.
How much are maintenance fees?
Maintenance fees for apartments range from 4AED – 15AED per sq ft of your apartment per annum. This will be
advised to you at the time of purchase. They tend to be fixed for 3 years after which a Residents Association is
formed.
Can I come and visit the property before I buy?
Of course it is possible to come out and view the property before you purchase. Just remember that
developments tend to sell out 18 months before they complete, so it may be that you can only see the area
where it is going to be rather than the building itself.
What is the rental yield I can expect?
Currently in Dubai there is a healthy rental market especially to foreigners and rental yields are between 12-
15%, depending on the location. Obviously, in time, with all the apartments which will be available to rent, and
as capital values rise, yields may drop to somewhere nearer 10-12%. It is worth bearing in mind that currently
there is a shortage of property to either rent or to buy to live in and many developments will not be available to
live in until the end of 2008, with delays being experienced. The current building programme is only expected to
meet current demand. However, over 50 companies a day open up in Dubai and it is anticipated that the
population will double by 2010, which will keep demand high for many years to come.
Are there any legal safeguards for foreign investors in the case of non-completion or poor construction
work by the developer?
Yes, there are codes of standards applied by the Dubai Municipality regarding building permits and contractual
clauses. The developer will have to maintain the standards as stipulated in the regulations issued with
regards to building construction, and also safety issues. In the event of a problem, assistance can be found
from the contract entered into with the developer. This may contain building covenants which often provide a
guarantee of workmanship of 10 years. There is also the civil code of the UAE which contains protection
regarding building standards.
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HOW TO BUY PROPERTY IN DUBAI