Buying Real Estate

Recent changes in legislation mean that foreigners are now allowed to register properties under own names at the Dubai Land Department (previously buyers held a contract of sale from the developer and could only transfer ownership via the developer).

However, foreign buyers can only enjoy freehold rights in certain areas and developments. These include the Palm Islands, the World, Dubai Marina and Emirates Hills.

Other key points to note include:

Renewable residence visas are available from developers.
Buyers normally pay the real estate agents commission (usually 1-2%).
The deposit on properties under construction is usually between 5 and 15%.
Inheritance laws in Dubai state that the rules enforced should be the same as those in the country of the deceased.
On the secondary market, transfer fees (typically 2%) are payable to the developer.
Maintenance charges are usually payable – can be fixed or dependent on property size.

Mortgages

Dubai is widely recognized as a stable country, providing a relatively safe environment for investment. Many banks are willing to fund real estate purchases by foreigners.

Expatriate Areas

Jumeirah and Umm Suqiem are by far the most popular areas for western expatriates.