In 2018 there were over AED 162 billion real estate transactions in Q1 – Q3 2018 (families/investors/people).
Of this, investment-related property transactions from global investors totalled AED 50 billion from 21,605 investors and according to figures from Emaar Properties they were from China, India, UAE, Saudi Arabia, UK.
Dubai residents enjoy a fantastic lifestyle and weather with its most famous world’s largest shopping Mall and the world’s tallest Building being the Burj Khalifa.
Dubai sits at the crossroads of Europe, Asia and Africa, bridging time zones across East and West and providing easy access to many of the world’s fastest-growing emerging markets.
Dubai is free from Income Tax for residents and there’s no Value Added Tax (VAT) levied on residential property for investors, making it a very attractive destination in terms of lifestyle as well as investment.
The UAE is the No 1 country in the world for macro-economic stability in the World Economic Forum’s 2018 Global Competitive Index.
The World Economic Forum’s Global Competitive Index in 2018 revealed that the UAE is one of the safest places in the world in which to live.
Logistically, it’s very easy and relatively inexpensive to invest in property in Dubai, whilst the following points ensure the property market remains highly liquid:
Global awareness and Dubai’s credibility as a desirable lifestyle destination have resulted in a multi-national customer base. Furthermore, well-developed broker base means resale of property is easy too.
Foreign nationals and companies, wholly or partly owned by them, have the right to purchase/own property in many parts of Dubai, without the need for any type of residency or similar permit.
The procedures to transfer ownership of property purchased with cash are as follows:-
If the seller has a mortgage, they must show their mortgage is paid up and show a No Objection Certificate (NOC).
30 days from start to finish an average cash property sale and purchase in Dubai. (This can take longer if the seller has a mortgage).
There are certain standard costs incurred when selling and buying property in the UAE. The following fees apply to the sale and purchase of real estate in Dubai:
NOC fee – between AED 500 and AED 5,000, payable to the developer, usually by the seller, subject to mutual agreement.
Real estate agent’s commission – for the most part, paid by the buyer and usually 2% of the purchase price.
Registration fees – calculated at 4% of the purchase price plus administrative costs (currently does not exceed AED 5,000).
Mortgage registration fees (if applicable) – calculated at a rate of 0.25% of the registered loan amount and paid to the DLD.
Building service charges – buyers are required to pay building service charges in advance to the developer/owner’s association. These are on the basis of the participation quota of their property.
Additional fees – payable to the offices of the developer and the DLD in order to discharge a seller’s mortgage.
The UAE laws currently place no restrictions on the number of properties a foreign national can own and there is no Value Added Tax (VAT) levied on ownership of residential property. VAT is payable on commercial property at a rate of 5%. Foreign nationals are encouraged to seek independent tax advice from their experts in their home countries to know how their ownership of property in Dubai affects taxation elsewhere.
Generally, the principles of Sharia Law apply to Muslims regarding inheritance issues. For non-Muslim foreign nationals, executed wills are accepted and the laws of succession in the country in which they’re a citizen are upheld by the UAE Courts.