What can be said about the Dubai property market that hasn’t been already? The industry keeps defying experts, insights, and trends to continue its upward momentum. This remarkable growth owes to a robust system put in place by the government to maximize value for investors, end users, and developers alike. This of course includes streamlining the property buying process. So, if you’re someone who is on the cusp of buying property in Dubai but are still on the fence, then read on, as we dissect everything you need to know before pulling the trigger on your property purchase in the emirate.
Regardless of nationality, any individual can buy a freehold property in the emirate, subject to fulfilling the legal and financial obligations. To make things even simpler, the buyer isn’t even required to hold UAE’s citizenship or residency. Also, there are no special NOCs or complex documentation required. The buyer only needs to show proof of legal funds.
Real estate can be acquired in any designated freehold area approved for transactions by the UAE's regulatory authorities. This includes many prominent residential communities, though it's advisable to consult a reliable real estate agent or legal advisor to confirm your choices. All property dealings are overseen by the Dubai Land Department (DLD), who also charge a nominal fee on each transaction.
The necessary paperwork to be provided varies based on whether you are making a purchase as an individual or a corporate entity. The list is not set in stone and will differ depending on the organization. Therefore, before completing any agreements, it is advised that buyers speak with the Dubai Land Department, a private client advisor or the real estate developer in Dubai if the property is off plan.
Before making any decisions on purchasing property, it’s strongly advised to engage a legal advisor well-versed in local real estate laws to oversee the process.
If you plan to use a Power of Attorney (POA) for representation, the POA must be notarized in the country where it is issued. Afterward, it needs to be legalized by the UAE Embassy in that country. Upon arriving in the UAE, the document must be attested by the Ministry of Foreign Affairs and translated into Arabic. For buyers residing within the UAE, the POA must be signed in the presence of a Notary Public. Additionally, according to Dubai Land Department (DLD) guidelines, a POA must not be older than two years to remain valid.
All documents submitted to the DLD must be translated into Arabic by an official legal translator. Any documents that are not in Arabic or do not include an Arabic translation will be deemed invalid for real estate transactions.
Currently, VAT is only applicable on the buying of commercial real estate. For instance, a manufacturing plant or a warehouse fall under the tax bracket. However, if you’re buying an apartment, villa or a plot in a residential community, you will be exempted from VAT.
Property buyers in Dubai are eligible for a renewable two-year residence permit, provided they meet the minimum investment requirement of AED 1 million in a property located within a designated freehold area. This permit also extends to the sponsorship of dependents, including personal staff and domestic workers. However, to maintain the validity of the residence permit, property owners must ensure they do not stay outside the UAE for more than six consecutive months.
All in all, purchasing a property, whether as an investment or as your personal sanctuary is a wise choice, since the city offers unparalleled standards of living, coupled with year-long sunshine, world-class attractions and tax-free income.
