FAQs

When navigating the complexities of buying property in Dubai, understanding the laws, requirements, and processes will help you make a smart and safe investment.

• Can Foreign Investors Purchase Property in Dubai?

1. The Dubai Land Department (DLD) has designated specific properties as Freehold Properties:
2. Freehold properties grant foreigners the opportunity to own a piece of land and the dwelling on it.
3. Homeowners have the option to occupy, sell, or lease the property.

Listen to more about this topic on my first

• What is the UAE’s Golden Visa and How Can I Benefit?

1. Those with property investments amounting to $545,000 USD (or higher) may now apply for the Golden Visa (i.e., a 10-year visa), which grants exclusive benefits to long-term residents who are investors, talents, entrepreneurs, and more.
2. The Golden Visa provides more stability for property investments, with ability to open a bank account, benefit from world class healthcare, and, more.
3. Property investors may sponsor their family members, including unmarried children, and provide them with residency visas.

• Can a Foreign Investor Obtain a Mortgage?

1. Usual requirements include being under the age of 55 and having a minimum of $50,000 in your bank account.
2. You can apply for a mortgage through both national and private banks.
3. You will also need to meet the mortgage requirements specific to the bank you are working with.

• What Are the Benefits of an Off-Plan Property?

1. A down payment of 10% of the investment, plus a one-time 4% payment to the Dubai Land Department (DLD), is routine.
2. Developers will typically offer a payment plan for approximately 60-80% while the property is under construction, with the balance due upon handover.
3. Some developers may even offer a post-payment plan spanning a period of 2 to 3 years after the handover.
4. A mortgage may be available to those who meet the requirements, which include being under the age of 55 and having a minimum of $50,000 in their bank account.
5. For off-plan properties in particular, there are opportunities for a 3 to 6-year payment plan and a 60% mortgage upon completion of the project.

• Is the Completion of an Off-Plan Property Guaranteed?

1. Developer ownership of the land for the project.
2. Prior to off-plan sales, 20% of the project must be completed OR 20% must be held in escrow.
3. Contractors are bound to a performance guarantee of 10%.

• Is My Money Held in Escrow?

1. The developer doesn’t allocate the money elsewhere.
2. All stages of the project are monitored to ensure completion, on-time.
3. The escrow account also protects buyers if the developer is unable to finish the off-plan project. The government intervenes to secure a new developer for the project.

• Am I Permitted to Offer Short-Term, Long-Term, or Airbnb Rentals of My Property and What Are the Average Rates?

1. The average rental rates are 12% to 15% for Airbnb and 7.5% for long-term rentals.
2. Bookings are permitted to be placed using credit cards such as Visa and Mastercard.
3. Renting parties have 24 to 48 hours to make wire transfer deposits into an escrow account for the property rental.

1. The Real Estate Regulatory Authority (RERA) ensures compliance and completion of projects.
2. Government-controlled escrow accounts protect the buyer’s money until project handover.
3. Strict regulations for off-plan properties, including developer ownership of land and completion of 20% of the project or holding 20% in escrow before sales.

• How Can I Invest in Dubai Real Estate from the USA?

1. Research the market and understand Dubai’s property laws.
2. Choose the right property – whether off-plan or resale.
3. Work with a reputable real estate agent to find the best deals.
4. Secure financing if necessary, through a mortgage.
5. Complete the transaction, ensuring all legal and financial requirements are met.

• Is There an Oversupply in the Dubai Real Estate Market?

The Dubai property market has faced concerns about oversupply, but recent measures and demand trends are stabilizing the market. Learn more about this on my podcast about Dubai real estate oversupply

• Is the Dubai Real Estate Market Facing a Bubble Risk?

Bubble risk is a common concern for any growing market. In Dubai, regulatory measures and market dynamics are carefully monitored to mitigate this risk. For an in-depth discussion, listen to my podcast about the bubble risk in Dubai real estate

• What Are the Top Areas to Invest in Dubai?

1. Dubai Marina: Known for its high-end apartments and stunning views.
2. Downtown Dubai: Home to iconic landmarks like Burj Khalifa and The Dubai Mall.
3. Palm Jumeirah: Famous for its luxurious villas and beachfront properties.
4. Business Bay: A growing business district with a mix of residential and commercial properties.
5. Jumeirah Village Circle (JVC): Popular for its affordability and family-friendly environment.