Real Estate in UAE

Property costs by district in the UAE

Residential properties in Dubai have grown in value by 3,5% annually over the past 10 years. However, the price increased and decreased from year to year: the annual price change ranged from an increase of 17% to a decrease of 12%.

The average residential property price per 1 m² is $3,175, according to the Dubai Land Department. The cost of housing depends on the area of Dubai: the highest price per 1 m² is in Downtown — $6,865. Prices per 1 m² in other areas of Dubai are: Palm Jumeirah — $6,857, Dubai Marina — $6,636, Dubai Creek Harbor — $5,145, Business Bay —  $4,905.

Property purchase procedure in the UAE

Property in Dubai can be bought in 4-6 weeks. First, the investor chooses real estate: this can be done remotely or in person. The parties conclude a purchase and sale agreement, in which they record the main parameters of the deal. The buyer puts an advance payment of 10% of the transaction amount.

If an investor buys real estate with a mortgage, they must obtain a No Objection Certificate from the bank. A payroll from the developer and a Certificate of Transfer are also required.

The buyer pays the remaining established amount. The buyer and the seller register the transaction with the Dubai Land Department. The seller receives payment under the contract after registering the transfer of ownership.

Property purchase taxes in the UAE

Buyers of residential properties in Dubai pay transfer tax and additional fees:

• transfer tax — 4%;
• administration fee for a tax payment — $147;
• registration fee — $545—$1,090;
• administration fee for a certificate of ownership registration — $68.

When purchasing commercial properties, buyers pay an additional 5% VAT.

Golden visa of the UAE for the purchase of a real estate

The UAE issues a five-year Golden Visa to foreigners for real estate investments. It is allowed to buy residential and commercial real estate in special areas called Freehold Zones. The minimum investment amount is AED2,000,000 (≈$545,000). Real estate can be purchased with a mortgage in one of the UAE banks, the down payment must be at least 50%.

A resident visa for three years can be issued by purchasing real estate. Properties must also be in certain locations, such as Freehold Zones, and cost at least AED750,000 (≈$204,000). A husband and wife can buy a property in joint ownership if it costs at least AED1,000,000 (≈ $272,255).