Guide to buying in Dubai: we can explain all the problems and solutions, helping you to purchase as simply as possible

You can either buy directly from the developer, in which case the majority of the time you will be buying “off plan.” Buying “off plan” means that the property may take up to two years to build.
There are no transfer fees.
There is no premium to pay.
There is a lower initial payment.
The payment schedule is spread over the period of the build.
The initial deposit may need to be paid within 48 hours to secure the unit.

You can also buy a property from somebody who has already bought from a developer; this is referred to normally as a secondary purchase.
There is usually a 2% (of purchase price) transfer fee to pay.
There are fewer payments to be made.
There is a greater initial payment required.
The development is usually closer to completion.

Expatriates can own property on 99-year lease and freehold only in designated areas Bylaws will be issued to determine locations of freeholds as well as registration and transfer fees, which are currently 1.5% and 2% of the property value respectively. Where Emaar, Nakheel or Dubai Holdings are the master developer then properties will be sold freehold. Where they are not, then properties will be sold on a 99 year lease. Annual service charges for common areas will be about £1 per sq ft depending on the development and are payable yearly in advance.

The Dubai Land Department will be the final registration authority for properties. The Land department will issue booklets and guidance for property registration soon.

Currently most properties are being let on a 12 months basis. Agents normally charge 10% of the annual rental value for management fees to the owner of the property. Agents normally charge 5% of the annual rental value for letting fees to the tenant. Service charges are payable to the Maintenance Company for your development by the owner yearly in advance as stated above. Community charge may be payable on some properties when completed. A power of attorney is necessary to allow the letting agent to let the property on your behalf.

The main purchaser is allowed to apply for a 3 year residency permit when purchasing certain properties. Not all properties have this eligibility and hence clarification should be sought before purchase. A resident’s visa does not entitle the holder to work. The main purchaser may re-apply for residency every 3 years indefinitely as long as the applicant is still a property owner and has not breached any Dubai regulations. The cost of a residency application is about £1000. This may vary between developers. There will also be an administration charge to arrange. The main purchaser may then sponsor the rest of his family. The number of bedrooms in the property will determine how many resident permits may be allowed. Properties may be purchased jointly by a husband or wife but a main purchaser must be designated and the principle purchaser only will be allowed to apply for the residency visa. Once the principle purchaser has a residency visa then he/she will be allowed to sponsor other immediate family members. They will not be allowed to sponsor friends or partners. A resident will be required to enter Dubai at least once every six months, for his visa to remain valid. There are other conditions, please enquire for full information, Casa Dubai can arrange for a Dubai company to assist with the application for a small fee.

Local laws do not allow women to inherit from their husbands or their fathers in the event of somebody dying intestate (without a will). A notary or a solicitor will easily be able to advise on the procedure for avoiding such an occurrence.

Casa Dubai can introduce our clients to solicitors based in Dubai who have specific experience in real estate purchase. Casa Dubai has negotiated the following fixed rate: AED 3000 (c £439 at ROE £1 = AED 6.9) to advise you on your rights and to receive funds in order to pay to the seller on your behalf when you are satisfied with the advice you have been given. Should you require your solicitor to sign contracts on your behalf you will have to pay an additional £150 to arrange a POWER OF ATTORNEY from the UK. Casa Dubai can introduce our clients to a Notary in London who will organise your power of attorney and who will arrange authorisation with the Foreign and Commonwealth office as well as with the UAE embassy .It is possible to communicate with solicitors in Dubai by telephone or email, email is preferable as it avoids telephone costs but also ensures prompt attention to your needs. Although solicitors are not absolutely necessary we advise our clients that any safeguards about transferring money will be assured when using a solicitor as they will receive and pass on funds to developers on your behalf representing your best interests.

Casa Dubai has an Independent Financial Adviser who can assist you in the UK with raising finance for your Dubai purchase. Casa Dubai can also introduce you to various lending bodies in Dubai and a specialist broker who will charge a fee for his services. The developer usually nominates a lender who is predisposed to lending on their development. A re-mortgage of your property in the UK is currently the cheapest way of raising finance as you are likely to pay between 5% and 6% interest APR. A mortgage in Dubai is likely to offer an interest rate of between 7-10% APR. Mortgages are offered to non-residents who provide a 25-30% deposit and agree to repay the loan over a 15 year period. Lenders can charge a processing fee for the mortgage. Varying degrees of proof of income are required depending on the lender. Self Certification is possible on some completed properties when 40% deposit is paid. Joint mortgages are not available for non married couples or friends in Dubai, although this may change.
Rates of Exchange
When purchasing a property in Dubai the purchase price will be in the local currency (dirhams) and will be subject to the rate of exchange when the money is transferred to Dubai. Rates of exchange fluctuate on a daily basis and the Dirham is linked to the US Dollar. It is possible to secure a rate of exchange by forward buying currency and Casa Dubai will be happy to advise on how to arrange this.

Casa Dubai will offer all the necessary advice to complete your purchase as well as transfer funds on your behalf and manage all documentation processing. With staff in Dubai Casa Dubai can reduce considerably the difficulties of processing forms and contracts. Charges in relation to administration, for example bank transfer fees, postage costs for documentation will be invoiced to the purchaser/owner as applicable. Should you require, Casa Dubai will introduce a specialist solicitor who can advise you on your purchase. A reservation agreement with the developer/owner is issued within 30 days to include all conditions and payment schedules. The full contract is normally issued after the payment of the second instalment. Casa Dubai will offer advice on financing your property. The developer will fit your property with kitchen, bathroom. White goods are not normally included by the developer. Casa Dubai will offer all our clients an interior design service.

Casa Dubai has been established in Dubai for four years since the property laws changed to allow non residents to purchase property and has offices on the Sheik Zayed Road and in Nottingham UK. Casa Dubai offer an independent service and are not linked to any one developer. Casa Dubai will guide you through the buying process and assist you through every stage. Casa Dubai will offer a FREE NO FEE letting & FREE No FEE Management service on certain developments. Please check details when making your purchase OR Casa Dubai will offer 10% or 12% Guaranteed rental return for the first three years on certain developments. Please check details when making your purchase. Casa Dubai will offer an interior design service. Casa Dubai will offer two free flights to anybody purchasing a property from a preferred developer subject to conditions.