Introduction:
Purchasing a home is a significant decision, and when it comes to the dynamic and thriving real estate market of Dubai, there is no shortage of questions that potential buyers may have. From legal considerations to property types and investment opportunities, navigating the Dubai real estate landscape can seem complex. In this blog, we will address real questions from home buyers in Dubai, providing valuable insights and answers to help you make informed decisions.

Question 1: Can foreigners buy property in Dubai?

Answer: Yes, foreigners can buy property in Dubai in designated Freehold Areas. The Dubai government has introduced various regulations and initiatives to encourage foreign investment in the real estate market back in 2006. Non-UAE nationals can buy freehold properties in designated areas called ''Freehold Zones'', which include popular areas like Dubai Marina, Jumeirah Beach Residence (JBR), Jumeirah Lakes Towers (JLT), Palm Jumeirah, Palm Jebel Ali, Bluewaters Island, Jumeirah Park, Jumeirah Islands, Meadows, The Springs, Emirates Living, The Greens, Business Bay, Downtown Dubai, Mohammad Bin Rashid City, District 1, Sobha Hartland, Meydan, Burj Khalifa District, La Mer, Pearl Jumeirah, City Walk, Jumeirah Bay, and many others. Additionally, there are leasehold properties available in other areas for specific durations, usually 99 years.

Question 2: What are the legal requirements for buying property in Dubai?

Answer: To purchase property in Dubai, both residents and non-residents can purchase a property with valid passport from country of their origin. Additionally you should prepare all standard KYC documents such as Proof of Address(home country is fine, if resident Ejari, Title Deed or DEWA bill), Source Of Income (f.e. Employment, Self-Employed, Retired, Investor etc), Client Professional Brief Profile or Company Profile that serves as Proof Of Employment/Business Ownership. Others documents may be additionally requested as per the neccesary compliance with Anti Money Laundry regulations by Ministry of Economy in Dubai. Aditionally you will be requested to sign CDF / Client Declaration Form that all of the provided documents are true as per your best knowledge.

For primary market transactions (offerings from developers, regardless of purchasing through an agent/brokerage or direct from developer) international payments into official Escrow Bank Account specific to that project are accepted without prior need of opening UAE bank account (subject to KYC, CDF and AML compliance).

For secondary market transactions is advisable to open your Bank Account first as due to strict compliance policies banks adhere to and Anti Money Laundry Regulations - opening a bank account can take from 1-8 weeks depending on documentations you provide and are ready to present (KYC & CDF as mentioned above). Therefore it is advisable to speak to any of the local banks on Bank Account Opening and sharing with them your intention to buy a property in Dubai so they can guide you through Bank Account Opening process. The reason why you do need a bank account in Dubai for these secondary market transactions is issuance of Managers Cheques from The Bank for The Day Of Property Transfer.

If you do not have a bank account and find it difficult to open one due to time pressure and found a property you want NOW, you can also appoint ''conveyancing company'' that may be able to issue these cheques for you.  Please note, that NONE of The Real Estate Companies are legally allowed to accept payments on behalf of The Seller. If anyone offers you such a service under ''real estate company services'' it is advisable you avoid to deal with such a company and hire a professional conveyancer. For your own peace of mind and ensuring smooth process of Property Purchase in Dubai or other Emirate is always better to have your own bank account in UAE as you will need it anyways after property purchase.

Some of the best banks in Dubai, United Arab Emirates and in United Arab Emirates in general are for example:

Emirates NBD Bank, ADIB (Abu Dhabi Islamic Bank), Mashreq Bank, FAB (First Abu Dhabi Bank), ADCB (Abu Dhabi Commercial Bank), HSBC Bank, SCB (Standard Chartered Bank) and others.

Other legal requirements include obtaining a no-objection certificate (NOC) from the developer (your Agent will assist with this) that includes conducting a thorough property inspection (usually for villas only, apartments reraly undergo inspections), and signing a sales purchase agreement or Form F (as per RERA and Dubai Land Department regulations). Prior to Form F there is also a Form A (for the sellers) and Form B (for the buyers) that need to be accepted/signed prior to Form F being generated, for more information and clarifications you can reach out to us on +971 585 365 111

It is crucial to work with a reputable real estate agent who specializes in Dubai Real Estate (ideally with 5+years of experience or more) to ensure compliance with all legal procedures for smooth and hassle free process of property purchase. Dubai Land Department and RERA (Real Estate Regulatory Agency) have implemented smart system for all property transactions therefore everything is digitalized and on Day Of Transfer, The Trustee Office (Licensed by DLD and RERA) makes sure that property is good to be transferred to a new owner as property history (including but not limited to previous ownerships, any potential blocks on property etc) is all entered in the smart system and documents are verified for their authenticity.

Question 3: What are the popular property types in Dubai?

Answer: Dubai offers a diverse range of property types to suit various preferences and budgets. Some popular options include apartments, villas, townhouses, and penthouses, possibly duplex penthouse with massive outdoor terraces often referred to as ''sky villas''. Apartments are typically found in high-rise towers and offer a wide range of sizes and amenities. Villas and townhouses provide more space and privacy, often with gardens and community facilities such parks, swimming pools, gym and recreation areas or sport activities such as golf clubs, residents club houses and others. Luxury penthouses and sky villas offer breathtaking views and premium features and are usually part of more boutique residential complex to enhance the privacy and exclusivity that of course comes with higher price tag than your usual apartment in a skyscraper.

Question 4: How can I finance my property purchase in Dubai?

Answer: Financing options are available for property purchases in Dubai. Local and international banks offer mortgage loans to eligible buyers. The loan terms, interest rates, and eligibility criteria vary, so it is essential to research and compare different lenders to find the most suitable option. Additionally, some developers offer payment plans with 0% interest rates, allowing buyers to pay in installments over a specified period mentioned in Sales Purchase Agreements. These are usually offplan/under construction, however you may be able to find few selected projects offering also so called ''Post Handover Payment Plan'' where you can move into a property and pay remaining balance of purchase price over few years (as per SPA).

Question 5: What are the best areas to invest in Dubai real estate?

Answer: Dubai offers several areas that are considered prime for real estate investment. These include established locations like Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Beach Residence (JBR), Emirates Hills, Emirates Living, The Springs, Meadows, Jumeirah Islands, Jumeirah Park, Business Bay and Burj Khalifa District and many others. Emerging areas such as Dubai Hills Estate, Dubai Creek Harbour, Dubai Maritime City, JVC or JVT and Al Furjan also present promising investment opportunities. It is advisable to consider factors like location, infrastructure development, rental demand, and future projects when assessing investment potential.

Question 6: Are there any additional costs involved in buying property in Dubai?

Answer: Yes, there are additional costs associated with buying property in Dubai. These include property registration fees (4% Transfer Fee Payable to Dubai Land Department), agency fees (usually 2% of selling price for secondary/resale transactions & 0% commission for offerings from Developers), and small other fees such as Trustee Office Fee (usually AED 4,000), Title Deed Issuance Fee (AED 580) . Buyers should also budget for service charges that are usually payable on quarterly basis to The Community Management Companies , as these cover maintenance of communal facilities or any potential repairs of common areas, including but not limited to lifts, swimming pools, security features etc. It is important to factor in these costs when determining your overall budget for property purchase. Usually these are calculated on ''AED X / sq.ft.'' so you can multiple the size of property by price per sq.ft. of the service charge costs.

Question 7: What are the benefits of working with a reputable real estate agent?

Answer: Working with a reputable real estate agent can provide numerous benefits. They have extensive knowledge of the Dubai market, access to a wide range of properties, and can guide you through the buying process, including legal requirements and negotiations. A reliable agent can help you find suitable properties based on your preferences and budget, saving you time and effort in the search process.

If you would like to get in touch, please contact Tereza Estates on +971 585 365 111 or fill an inquiry form on one of our website listings.

Conclusion:
Navigating the Dubai real estate market as a home buyer can be both exciting and challenging. By addressing real questions from prospective buyers, we hope to have provided valuable insights and clarity on key aspects of purchasing property in Dubai. Remember to conduct thorough research, seek professional guidance, and make informed decisions to ensure a smooth and successful home-buying experience in this vibrant city.