Who Can Buy?
Any investor, overseas or resident, can purchase in one of Dubai's luxury property developments. In 2002 a decree was issued by the Dubai government granting freehold rights to non-GCC nationals (The GCC is the Gulf Cooperation Council, comprising Saudi Arabia, Kuwait, the UAE, Oman, Bahrain and Qatar.) This provided the impetus that has led to the size and dynamism of Dubai's property market today.
Which type should I buy?
Most properties being bought are OFF-PLAN for resale at a latter date or 'Buy to Let'. It is obviously better to buy one OFF-PLAN properties as they will not command a premium such as the properties in the resale market. Studios and 1 beds are the favorite for the 'Buy to Let' purchaser and 2-3 bed apartments for the long term capital growth buyer.
Mortgages
Mortgages are available on a 10 to 25-year basis, Interest rates are linked to those in the United States and the UAE market.
Payment Terms
In general, a deposit representing 10% of the buying 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. Contact us for project-specific details.
Bank Accounts
Buyers do not need a local bank account to arrange purchases, though these can easily be arranged.
Purchase Times
Purchases normally take no longer than two weeks to exchange through our one-stop shop service. The final contract / tittle deed is signed in front of a Dubai Notary and the deeds are then recorded with the Land Registry.
Development Service Charges
Minimal service charges are payable to developers for maintenance, landscaping and refuse collection. This charge varies per development.
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. Talk to your TOP Network Consultant for project specific information.
Popular Areas
Dubai Marina, Freehold zones and 50 year tax free zones such as the DIFC (finance center) and IMPZ (tax free zone)
Other Costs & Information
Land Registry fee of 1.5% payable upon completion.
Service Charge payable annually. A maximum of 12 AED per sq/ft. As it is freehold ownership, the apartment owners will have a say who the management company is, therefore the management company will always charge competitive rates. Solicitors are not usually used as the contracts are easy to understand & non-negotiable.
TAX-FREE capital growth and rental income unless bringing money back into the UK. Many investors set up off-shore accounts to avoid this tax.
There is a tax payable annually on rent of 5% of rental value.
It is normally tagged on to the DEWA (Dubai Electric & Water Authority) bill and is paid by the tenant only. This tax does not apply if the apartment is not being rented out. |
