With its warm climate, pristine beaches and astounding architecture, the UAE has become a dream destination for many people to reside in luxury and relaxation. Due to the lucrative opportunities in the property market, investors and buyers worldwide are flocking to buy property in the UAE.
What attracts the most are the tax-free investment opportunities ranging from ready-to-move or off-plan properties, that too, in the prime locations of the UAE. To help you familiarise yourself with the laws and benefits of buying property in the UAE, we have listed some FAQs.
Let’s dig into the details and find the answers to some interesting FAQs about buying property in the UAE.
Frequently Asked Questions about Buying Property in the UAE
The list of FAQs about buying property in the UAE will help you understand who and how one can buy property in the UAE. Here is what you need to know.
What are the benefits of buying property in the UAE?
The UAE is a property trove for investors from which one can benefit in multiple ways. These multiple benefits of buying property in the UAE include:
- High living standards,
- High level of security,
- Different types of properties,
- Technological advancements,
- Advanced public transportation,
- Fast and easy purchasing process,
- Quality education system,
- Popular tourist destinations, etc.
That said, if you are interested in buying property in Dubai, these benefits of buying property in Dubai will strengthen your decision-making.
How to buy a property in the UAE?
To buy a property in the UAE, you need to plan and research about the subject property. Also, you should be aware of the real estate laws set by the government of the Emirate where you wish to invest. The legal steps of buying a property in the UAE include:
- Formulating a contract between seller and buyer
- Signing the SPA – Sales and Purchase Agreement
- Applying for a No Objection Certificate
- Transfer of property ownership
The legal steps of buying a property anywhere in the UAE are relatively simple. However, depending on the law about real estate, there might be additional steps involved in different Emirates.
What are the hidden costs of buying property in the UAE?
Several additional costs come with buying a property in the UAE. For instance, the government charges, mortgage fees, property valuation fees, insurance fees, real estate agency fees and conveyance fees.
However, these costs might differ in every Emirate. For instance, the hidden costs of buying a property in Dubai include a DLD fee which is equal to 4% of the total property value.
Can expats buy property in the UAE?
Yes, expats can buy property in the UAE, however, the rules for buying property differ for expats in different Emirates. In Dubai, expats can buy property in the areas designated as freehold areas. Also, they get complete ownership of the property in Dubai without any age restriction.
Whereas in Abu Dhabi, expats can not buy land rather they can buy property in the form of a floor or apartment. For more details, check out this guide on the rules of buying property as an expat in the UAE.
What are the benefits for expats buying property in the UAE?
The benefits for expats buying a property in the UAE are numerous. One of the biggest benefits is the competitive property prices across the region, allowing foreigners to gain more value for their money.
Moreover, the UAE offers an investor-friendly tax system and high rental yields on various property types. Foreign investors can obtain a long-term residence visa depending on the property’s worth and the investor’s age.
What are the tips to invest in the UAE real estate market?
The foremost tip to invest in the UAE property market is to increase knowledge in this domain. For that reason, you must decide which property you want to invest in. Once decided, perform market research using comparables and assess market trends. Next, set the investment budget depending on the property type and your market research.
Moreover, a licenced real estate agent can guide you through complex real estate transactions. Therefore, hiring a real estate agent to help in the purchasing process and documentation can be worth the fee.
What are the different types of properties in the UAE?
The different types of properties in the UAE are classified under two categories; residential and commercial properties. You may find apartments, villas, penthouses, townhouses and duplexes under the residential properties. Whereas, showrooms, offices, factories, warehouses, commercial buildings and floors fall under the umbrella of commercial properties.
What is home financing law in the UAE?
Home financing in the UAE offers financial flexibility, helping you to save for emergencies. The home financing law in the UAE elaborates on the mortgage registration and application procedure. It also has instructions for the legal effects and execution proceedings of a mortgaged property.
To get details on mortgages, mortgage cap and LTV ratios in the UAE, head over to home financing law in the UAE.
Why is property valuation important before buying property in the UAE?
Property valuation is the estimation of a property’s actual value. A property valuation is important before buying one in the UAE as it prevents a potential investor or buyer from overpaying. This service can help you secure a mortgage loan, evaluate a property’s profitability, and determine the pros and cons of a property before investing in it.
In Dubai, you can request a property valuation in Dubai via the DLD’s website. Also, there are many RERA-approved companies offering property valuation services in Dubai.
With this, we conclude our list of FAQs about buying property in the UAE. Make sure to assess your finances before investing in a property in the UAE. Besides, if you are an expat buying a property in the UAE, it makes you eligible for a long-term residence visa in the Emirates.
That said, if you are planning to buy property in the UAE, make yourself aware of the rules and regulations of different Emirates about the property.
Stay tuned to the UAE’s leading property blog for more information on property buying and selling in the UAE.
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