F.A.Q.

An off-plan property is a property purchased before its completion. Essentially, you’re investing in a project that is either under construction or still in the planning phase.

Developers may offer special discounts and/or flexible payment plans to attract buyers. As construction progresses, the value of the property increase, potentially leading to capital growth by the time it’s completed.

Furthermore, Off-plan properties often come with the chance to customize certain features. Developers may allow you to choose finishes, layouts, and other details before construction is completed. This opportunity to personalize the property can make it more suited to your tastes and requirements.

Contract F is one of the essential documents required for ready built property transactions in Dubai. Contract F is the Memorandum of Understanding (MOU) between the buyer and the seller. Also, referred to as purchase agreement, is signed by the two parties, when the buyer agrees to buy a property on a given price.

Contract F lists the terms and conditions, rate, commission split for buyer’s and seller’s agent and other vital details of the property. The signed memorandum is to be dated by the property broker. Once signed by both parties, the contract is dated and registered by the property broker to proceed with the transaction.

Even though residential properties in the UAE are not subject to VAT you need to consider some fees in relation to your investment.

DLD fee                            4% of property price +
Admin fees (AED 40 for Off-Plan, AED 580 for Apartments & Offices)

Registration fee           AED 2.000 + 5% VAT (for Property value below AED 500.000)
AED 4.000 + 5% VAT (for Property value above AED 500.000)

Title deed                      Issuance fee AED 250

Agency fee                    2% of property final sales price for ready built properties

Conveyance fee          Optional; legal service for purchase management of ready built properties

If Off-Plan:                    Additional “Oqood fee” (Interim register for Off-Plan until the final title deed is issued upon completion)
= 4% of property price

If Mortgage:                 Additional registration fee at DLD = 0.25% of loan + AED 290

                                          Bank processing fee = ca. 0.5% – 1% of value

Bank application fee = 0% – 0.5%

Property valuation charge = around AED 3.000

Evt. Life insurance issued by bank

One of the key aspects of investing in off-plan property in Dubai is the security provided by a government authority (RERA) through its escrow account system.
When an investor makes a payment, the funds are deposited into an assigned escrow account that is managed, legally supervised, and regulated by RERA.
The Developer cannot access these funds at will, he must first meet and proof specific construction milestones.
Any and all escrow-related transactions are recorded by the escrow trustees -this offers a layer of protection and transparency, ensuring that your investment is 100 % safeguarded.

Yes, it’s possible through power of attorney (POA). By appointing a legal representative in Dubai, buyers can complete property transactions without being physically present.

Taking in consideration that factors such as financing approvals, document readiness, and coordination between parties can affect the timeline, the process usually takes 30 to 45 days after the buyer and seller agree on terms.

This agenda includes several key steps: conducting a property valuation, obtaining a no-objection certificate (NOC) from the developer, preparing and signing the sales agreement, and completing the transfer process at the Dubai Land Department (DLD).

As per law, a property must be registered at DLD within 60 days from the date of sale to avoid penalty fines.

Ensure the real estate agent is registered with the Dubai Land Department (DLD). You can verify their credentials by asking for their registration number or checking the DLD’s official website for authorised agents and real estate companies.

Yes, it is possible to obtain a residency visa in Dubai by purchasing a property. The United Arab Emirates (UAE) government has implemented several programs that allow property buyers to obtain residency visas through Property Investment, for example:

2-Year Visa

• Property value minimum AED 750.000
• Property must be ready or at least 50% construction completed
• Husband or wife, and children can be sponsored for the same period for 2 years
• Work, study or reside long-term in UAE without requiring a sponsor
• Open a bank account in the UAE

5-Year Retirement Visa

• Property value minimum AED 1 million
• Property must be ready or at least 50% construction completed
• Age Criteria is 55 Years or above
• Husband or wife, and children can be sponsored for the same period for 5 years
• Sponsor your parents for a period of 5 years
• Work, study or reside long-term in UAE without requiring a sponsor
• Open a bank account in the UAE

10-Year Golden Visa

• Property value minimum AED 2 million
• Extended stay outside the UAE; there is no limit on how long you can be outside the UAE to keep the visa active.
• Sponsor your family for the same period for 10 years
• Sponsor your parents for a period of 10 years
• Sponsor your child; age limit is less than 30 years for boys & girls unmarried
• Sponsor up to 2 maids and 1 driver for 2 years
• Work, study or reside long-term in UAE without requiring a sponsor
• Open a bank account in the UAE

Whether you are a UAE resident or an international buyer, you have the legal right to own property in Dubai. There are two main categories of ownership available: Freehold with complete ownership about land and property without time limit in designed areas; or Leasehold which gives you the right to use the property for a specific period (mostly 99 years) without any area restriction.

But you aren’t limited to residential real estate – foreign buyers are also eligible to own all kinds of commercial real estate.

Best news first: There are NO property taxes, wealth taxes, city taxes, gift taxes, or inheritance taxes at all.

Nevertheless, following yearly fees every investor has to consider.

Municipality fee
5% rental value; calculated from the official rental index and collected by DEWA

Service fees
Charges for the building and its common amenities. Fees depending on the area/community and calculated by Service Charges Index by DLD (AED 3 to 30 per square foot). Collected through online system “Mollak”

Maintenance
Depends on the property