Buying in Dubai - Process, Costs & Considerations

Whether you are deciding to buy a new, refurbished or off-plan property in Dubai, there are common issues that all investors can encounter and should be aware of:

1. There are no property-related taxes to speak of in Dubai, so initial outlay will be minimal. Initial outlay will cover lawyer’s fees and ongoing maintenance fees related to the property in question.

2. The purchase process can move very quickly in Dubai, so an investor should have a mortgage arranged in advance, if required. This can be done from the investor’s country of residence or in Dubai itself.

3. It is prudent to consider the type of market you are targeting, as this may inform where you buy e.g. Dubailand offers perfect investment opportunities for those concentrating on the tourist market, whereas a detached villa would be more appropriate for the family market.

4. Because there is no conveyancing system in Dubai, anyone considering buying property for resale must contact the original developer before signing a purchase contract. This eliminates the potential for fraud with the vendor not having permission to sell or selling to more than one buyer.

5. If buying off-plan, a deposit of between £1,000 and £3,000 is usual. Between 10% to 205 of the property’s purchase price is normally paid once very three months. The build-time can be from 1- 3 years; during this time, the property can be re-sold, but a transfer fee of approximately 2% will need to be paid to the developer.

Dubai Property Investment Guide

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