The real estate market in Dubai is developing rapidly and, as this Emirate is becoming a more popular business destination, purchasing a property in Dubai seems like a good investment choice for many foreigners looking to do business in this area. Either for personal use or for renting purposes, if you want to buy a house in Dubai, you should firstly take a good look at the real estate market and the available offers.
Our lawyers in Dubai can assist you throughout the purchase process and help you conclude any necessary property purchase agreements in Dubai.
The Real Estate Regulatory Agency in Dubai is the one responsible for approving registered developers in Dubai. Before purchasing a property, it is best to check if that developer is approved by the agency. This can be done on their website. As a buyer, you will need to pay close attention to some important aspects, like the final price of the property, if the property is finished or if there will be any additional construction works.
The first step when purchasing a property in Dubai is to come to a verbal agreement with the seller. After the initial details have been negotiated, the buyer and the seller draw up a formal sales contract. Usually, an initial deposit is also made during this stage. Foreign investors should also know that buyer must be at least 21 years old.
Foreigners have the option to choose between several types of properties in Dubai, including “resale” properties. This type of property is purchased from a private seller and the two parties usually agree upon a memorandum of understanding that is a document that describes the terms and conditions for the sale.
Foreign buyers also have the option to get a mortgage in Dubai. Although mortgage lenders can impose certain strict conditions to allow the approval of a mortgage, foreigners who want to apply for a mortgage in Dubai need to submit the following documents:
One of the greatest advantages of buying real estate in Dubai, whether for residential or commercial purposes, is that there are no taxes related to transaction itself. One must only pay the property transfer fee and the stamp duty. The transfer fee must be paid when registering the property with the Dubai Land Department and is set at 1.5% of the purchase price, while the stamp duty usually ranges between 1 and 7 percent of the buying price.
Our law firm in Dubai can help you with real estate due diligence in Dubai and other legal services. Please contact our Dubai attorneys for more information.
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