5 FAQs About The Process Of Buying A Home In Dubai
by Abdul Aziz Mondal Real Estate Published on: 13 January 2023 Last Updated on: 11 November 2024
Most investors have dipped their toes into the area of property, and in 2023, many investors are looking to diversify their portfolios by investing in real estate overseas.
And, if you have heard the buzz on the street from other investors or landlords, one area that has become particularly popular to invest in is Dubai. Indeed, the property market is predicted to boom in Dubai in 2023, with more people moving there for work, so it can be well worth looking to diversify your portfolio with a property in this area.
But, of course, you may have some questions about doing so. Here, five commonly searched FAQs about investing in real estate in Dubai are answered.
1. What Is The Process For Buying A Property In Dubai?
The process for looking for a Property for Sale in Dubai is much the same as it is in the US. Except, it is usually done via an estate agent working in Dubai, especially if you are located in the UK or USA.
You will need to search, view the property remotely, make an offer and then apply for a mortgage and put down a deposit, which will usually be around 10% of the property’s value.
2. Are There Any Fees When Purchasing A Property In Dubai?
Yes, there are a few!
The agency fee is typically around 2-4% of the property’s purchase price and is paid to the real estate agency for their services in finding and purchasing the property. Next, the transfer fee is typically around 4% of the property’s purchase price. This is a fee paid to the Dubai Land Department for the transfer of ownership of the property.
The registration fee is typically around AED 500 (about $136 USD), and this is a fee paid to the Dubai Land Department for registering the property in your name. If you are financing the purchase of the property with a mortgage, you will also need to pay a mortgage registration fee, which is typically around 0.25% of the mortgage amount.
If you take out a mortgage, you will have to obtain life insurance which will be added to your mortgage expenses. Some properties in Dubai are part of a homeowner’s association, which may require you to pay a monthly or annual fee for maintenance and other services. Also, some additional closing costs may apply, like lawyer fees, notary fees, and more.
3. Can I Buy Property In Dubai Even Though I Don’t Live There?
There is currently no restriction on foreign ownership of property in Dubai. The United Arab Emirates has a policy of freehold ownership, which means that both foreign and local buyers are able to purchase and own property in the country with the same rights and protections.
4. What Is The Average Cost Of A Property In Dubai?
The average cost of an apartment in Dubai is around AED 1.3 million (approximately $354,000 USD) for a one-bedroom apartment and AED 2.5 million (approximately $680,000 USD) for a three-bedroom apartment, according to data from the Dubai Land Department.
5. Are Mortgages Available For Foreign Buyers In Dubai?
Yes, mortgages are available for foreign buyers in Dubai. Banks and financial institutions in Dubai offer mortgages to both foreign and local buyers, although the requirements and terms can vary depending on the lender.
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