Dubai Property Investment Guide: For Clarifying Your Initial Queries

Ready Properties

Ready properties are available for moving in immediately after formal transfer of ownership from their rightful owners. Based in established areas or communities, ready properties can be a few months old or years old. Renovation and repair of such properties become the investor’s responsibility. No installments or flexible payment plans become applicable. 

Off-plan Properties

Off-plan properties are either yet to be built or under-construction units. These are best for investors who are not in a hurry to source rental yields immediately and prefer paying installment-wise. You need not make the full payment in a single go. Flexible payment plans are available that segment the full amount into smaller installments payable partly during construction and on handover. It can also include a post-handover payment facility where you can pay the final amount after you get the property key.

Freehold Ownership

Foreigners or expats can own their purchased units in freehold zones, lease them out, or sell them anytime they want. Full ownership! The only catch is there are designated freehold zones in Dubai, and properties sold here only come with these privileges. 

For example, Downtown Dubai, Dubai Marina, Palm Jumeirah etc. 

Leasehold Ownership

Expats can retain their right to occupy the property for 30 to 99 years (usually) and can lease it. But they can never fully own the units. You opt for a lease agreement with a freehold owner; that’s all. It has some investment potential with reduced maintenance costs and more affordable property prices. 

For example, some areas in Dubai Silicon Oasis and Dubai South are categorized as leasehold areas.

Online Dubai real estate investment guide experts swear by the promising investment potentiality of these popular freehold communities:

• Downtown Dubai—a significant residential and commercial development that houses the iconic Burj Khalifa, Dubai Opera, and Dubai Mall. 

• Dubai Marina—as many as 180 skyscrapers encircle this 3-km-long Marina, and multiple f&b outlets and leisure choices. 

• Palm Jumeirah—a palm-shaped artificial island revolutionizing waterfront or island living through premium apartments and luxury residences. It marks the largest land reclamation project in the world. 

• Palm Jebel Ali—double the size of Palm Jumeirah, the futuristic waterfront development is set to come with arrays of premium residences, hotels, resorts, entertainment, and leisure spaces. 

• Business Bay is the most stylish and significant business hub of Dubai, with some of the most attractive buildings in the world, besides gigantic residential high-rises, retail, recreation, and restaurant options. 

• Emaar South—a renowned golf course development with top-class, diverse residential choices and lifestyle attractions. 

• Jumeirah Village Circle- JVC is one of Dubai’s fastest and largest family-oriented communities with a range of residences, retail outlets, and amenities. 

• Jumeirah Beach Residences—renowned as the largest residential quarter on earth, it takes coastal living a notch higher, lying between Dubai Marina and the Arabian Gulf on a 1.7 km stretch. 

• Jumeirah Lake Towers—3 lakes and a park are encircled by 87 stunningly gorgeous residential and commercial towers with arrays of lifestyle facilities. 

• Arabian Ranches—you have here over 4,000 luxury homes (no apartments) in a self-reliant community with supermarkets, an equestrian club, parks, and several family-centric amenities. 

• Dubai Hills Estate—a city-like community in the prestigious MBR City with an 18-hole championship course.

Dubai property investment guide always include the names of these major real estate brands that propelled Dubai to popularity as a real estate hub. 

• Nakheel Properties—Palm Jumeirah, Jumeirah Islands, The World Islands, Dubai Islands, Al Furjan etc. 

• Emaar Properties—Dubai Marina, Downtown Dubai, Dubai Creek Harbour, The Valley, Arabian Ranches etc. 

• DAMAC Properties—Damac Hills, Damac Lagoons, and Damac Hills 2. 

• Sobha Realty—Sobha Hartland, Sobha Hartland 2, Sobha Reserve, Sobha Elwood etc.

• Ellington Properties—Belgravia Square, Ellington Beach House, and Mercer House. 

Any credible online investment guide for beginners is incomplete without giving a glimpse of how to buy a property. We intend to keep a wholesome approach, so we are highlighting the important steps briefly yet precisely here: 

For Buying Off-plan Properties

• Determine your budget and investment goals. 
• No blog or vlog can outsmart a RERA agent as your best Dubai real estate investment guide. Go through the DLD (Dubai Land Department) website. 
• Be ready with a valid passport with a minimum of six months’ validity and recent salary slips or bank statements. 
• Select your unit directly with the real estate developer or through your appointed RERA real estate agent. 
• Pay the booking fee (it is not the down payment) and sign the Booking Form or OTP (Offer to Purchase), outlining the terms of sale. 
• Pay the down payment to the real estate developer’s escrow account. 
• Register a Sales Purchase Agreement with the Dubai Land Department. Sign it. 
• Pay the Dubai Land Department fee of 4% of the property price to register the property in your name. Get the OQOOD. 
• Pay as per the payment scheme, make the final payment on handover, and secure the title deed. 
• You can apply for a mortgage or sell it before the final handover for an instant lump sum ROI. 

For Buying Ready Properties

• Know your budget and do not go overboard. Make a modest start. 
• Contact reputed real estate agencies in Dubai for safe and smooth investments. Check the DLD website. 
• Invest in properties sold by DLD-registered owners. The property listing sites of popular real estate agents are trustworthy. 
• Be ready with a valid passport with a minimum of six months’ validity, recent salary slips or bank statements for mortgages, or proof of funds (for buying in cash). 
• Sign a Memorandum of Understanding (MOU) and pay a 10 percent deposit to reserve the property. 
• Once the terms are agreed upon, apply for obtaining an NOC certificate from the property’s developer. It ensures that no payments are due from the owner’s end. 
• After the NOC is issued, the ownership transfer is finalized at the DLD (Dubai Land Department). You have your property now. 

Dubai properties are competitively priced but not cheap. Dubai property investment guide experts suggest availing of mortgage facilities for easing the payment journey. Here are some vital points you might like to note down.

• The minimum age limit for a mortgage applicant in Dubai is 21 years, and the upper age cap is 65 years for employed expats and 70 years for self-employed expats, including native investors.
• Dubai-based foreign investors get 80% of the property price on mortgage. Investors staying outside Dubai get 50-70% of the value on loan.
• Typically the loan repayment period ranges from 5 to 25 years.
• Interest rate ranges between 2.75 and 5% per annum.
• Documents needed include salary slips or salary certificates, bank statements showing entries of the past 6 months, a passport photocopy, and a recent statement record of the credit card.

1. Not appointing a RERA real estate agent: Do not try to manage the entire process single-handedly, solely relying on Dubai property investment guide blogs or vlogs. They always act in your favor, from inspecting the properties to finalizing the deal.
2. Neglecting Property Management Services: Do not neglect the importance of accessing property management services in case you choose to stay outside Dubai in your hometown. Professional property management companies ensure your investments stay in tip-top form and that the tenants fulfill their obligations timely.
3. Stepping in without knowledge: Not conducting detailed research properly before taking a major investment decision can make you regret it. Do market research thoroughly or simply seek a RERA real estate agent’s guidance.
4. Not considering any extra cost other than the property price: Overlooking the extra fees and charges that add to the property ownership cost, including: 

• DLD registration fee (4%)
• Agency commission (2%)
• Mortgage setup and valuation fees (if applicable)
• Service charges / maintenance costs

Wrapping up

We guess you are already aware of the Dubai real estate boom and the zero property and capital gains tax that allured you to this blog in the first place. Information in our Dubai property investment guide focuses on investment-relevant details that you find straightforward, practical, and useful.

Dubai’s real estate boom is not a bubble, so be carefree with the guidance of experts for a future-proof investment strategy.