Dubai Real Estate FAQs 2024

FAQ's

Yes, the freehold properties are 100% ownership by foreigners who come from all over the world to purchase their property in Dubai on a full ownership basis.

It simply means a property that you can own the land and the property on it forever.

A kind of property that you can own for a ease period of  99 years, you own the property during that period not the land and it is returned to the government after those 99 years.

Yes, you will require an NOC from the Developer to sell either a leasehold or freehold property. When you sell a freehold property, the new owner owns 100% of the property. When you sell a leasehold, the owner gets the remainder of the 99 years that are left on the property leasehold of the 99 years from the past owner(s).

There is not straight forward answer as your Realtor should help you select a property that has the right criteria that offers a higher ROI, many aspects are taken into consideration to make that decision such as location, purchase price, amenities, state of the property and more and therefore it is a case to case. A good ROI should start at 7% and the maximum would be around 10% on average for a yearly rented property.

There is significant activity in the Dubai market with numerous developments and various properties being sold. Your Realtor, with their extensive involvement in daily market transactions, can assist you in selecting the most suitable option based on your desired property outcomes. An agent serves as an advisor who takes your preferences into account, so the more information you provide about your property goals, the better they can support you. This ensures you make an informed decision and avoid potential costly mistakes in the property market, leading to greater satisfaction with your investment.

 

While it is still under development, buying a property under construction means that you will purchase it under an off-plan payment plan which has 0% interest and has a lighter cost as it is through a scheduled split of diverse payments throughout its construction, this makes the cost of the property at its lowest value, therefore individuals who purchase it when it is ready will have to buy it at a much higher cost. While Dubai is still developing its projects, it is lucrative to buy a property from an off-plan project as they deliver within 1 to 4 years depending on the development.

Properties that are not ready are called off-plan, they are usually under construction and are much cheaper than ready properties and have no possibility for a mortgage with interest but rather have a soft payment plan under several dates throughout the construction period with 0% interest and are better as they are completely new properties which the owner will be the first to receive.

There are no taxes on property in Dubai but there are fees such as 4% registration fees and admin fees that can vary at a menial level. There is no inheritance tax or tax on property in Dubai. A property may have fees like service charges paid on a quarterly or yearly basis that can go from 3 dhs per sq ft of the total property area upto 18 dhs per sq ft for average properties and more for the luxury segment properties to maintain the building and its amenities and housing tax added to the electricity and water bill for the municipality to take care of the city we live in.

At the very least properties start with Studios at about 600,000 AED of a decent property in Dubai, add to that a cost of Agency fees of 2%, a DLD of 4%, and admin fees of around 5000 on average. A mid-range property would begin at 1.2 million AED and a higher tier property at 5 million AED with the highest being 750 million on the property market today.

At Prestige Edition, we value our peers in the industry and know that real estate is a long-term field, therefore many criteria will have to establish the best property company in the market. Number of Sales and Longevity in the market does favor some agencies and creates powerhouses that push forward more of their name in the market but we like to think that quality of service, understanding of our clients and giving them proper attention is more important than names and titles. We resist the urge of an arrogant statement and do not associate our brand with any other company and stay true to our morals and ethics, values, and transparency in the market and wish the best for our peers and believe in their genuine efforts in the field of real estate. Having said that we have our favorites but we would not like to bring up any names. What we rather suggest to you dear client is that you pick an agent who you feel is genuinely interested in helping you and being your sidekick in the journey to real estate property ownership regardless of the company they come from as they are the person you should trust not the company. We encourage you to be at peace with your decisions and feel right at home with the company you choose to work with and of course, we will always be by your side if you choose to pick Prestige Edition as we believe in a sound and positive real estate experience.

KYC, or Know Your Customer, is a mandatory process document aimed at verifying the identity of individuals involved in a property transection to submit to government financial institutions.

Typically, you need valid identification (passport or national ID), proof of address, and details about the source of funds used for property transactions.

Your Broker holds the security deposit until RERA, the Real Estate Regulatory Agency will request for it to be returned to the party who it is rightfully given to, based on the contract otherwise if any lack of fulfillment of the agreement on any part, the Dubai Courts will rule to whom it sall return to.

Yes, it is possible depending on the property with a 1% fee of the total value of the property to transfer it from a leasehold to a freehold for certain properties.

A Emaar has built Burj Khalifa and several master communities such as Downtown, Arabian Ranches 1,2,3 Marina, Creek Harbour, Beachfront, Rashid Yachts and Marina.

A Nakheel is the Master Developer behind the Jumeirah Palm Island, Nakheel means Palm in Arabic and is also projecting to build Jabel Ali and Deira Palm.

Sobha, the master developer of Sobha Hartland 1, 2 and Sobha Reserve is also a developer of projects like SeaHaven, Verde, S Tower and Sobha One.

Properties in Dubai can increase to stabilize the economy and return to its normal value, or due to shortage of supply, it can also increase due to huge demand or exclusivity of the property or renovations of added value to the property and a Realtor can help you discern the best time to sell or rent your property depending on current market trends.

Buying property in Dubai offers significant opportunities despite some risks, which can be effectively managed with the help of a professional broker. While high costs and fees such as agent commissions, registration, and maintenance are part of the process, a knowledgeable broker can provide accurate cost assessments and identify properties with strong investment potential. Experienced brokers ensure you work with reliable developers, minimizing risks related to project delays or incomplete developments. They also offer valuable insights into maintaining consistent rental yields, navigating market conditions, and selecting reputable property management services, ensuring your investment is well-protected and maximized.

When you purchase an off-plan property, your agent is just an advisor who will not require you to pay them a commission.

Yes, you can get a golden visa by buying a property in Dubai by placing a 20% down payment on a property of over 2 Million AED and above. Golden Visa is a 10-year visa renewable every ten years due to your property ownership. There are also other kinds of property ownership visas, renewable after their given time for lower-budget properties available in the market.

It goes without saying that trying to sell your home on your own can be a tedious and stressful task full of uncertainties, it is timely and exhausting when you do not have the proper support of an expert. We at Prestige Edition continuously provide feedback and effort to make sure your property gets ranked highly, well exposed, and highly in demand. We spend hours studying the market and valuing your property’s potential for sale couple that with our on-the-ground experience and you have a team of individuals who care that your property gets sold or rented as soon as possible within the market frame. Your agent may not require you the owner to pay them for a commission unless you are satisfied with the end result. The best way, therefore, is to take an Agent by your side and do not wait for more than 3 months on the same agent unless you see their progress and consistency in trying to get your property to be sold, We advise you to be patient for the maximum period of at least 6 months in order to allow the market to turn to your property’s favor.

A good townhouse or villa may cost around 3 million AED but the service charges are lowest for villas and townhouses and therefore it’s yearly cost will be lower and more efficient if the property is well maintained, isolated for lower utility bills as well.

A security deposit is a sum of money placed in a cheque. It serves as financial security against a property contract that ensures the rights of all parties in an agreement whether it is a rental or a sale.

The security deposit can be used as a booking for a property or used by the landlord to cover damages to the property beyond normal wear and tear, outstanding utility bills, or unpaid rent at the end of the tenancy period.

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