Buying and investing in Dubai
Dubai has long been established as the business hub and tourist centre for the region, with its national carrier Emirates and world-class hotels achieving global recognition. Since 2002, foreigners have been allowed to purchase property in designated foreign ownership developments and this has resulted in a vibrant and profitable property market.
Today, Dubai is synonymous with the hallmarks of a luxury ’lifestyle’, fine cuisine, world-class shopping and hotels. People from all over the world are attracted by the beautiful weather, clear blue seas and high standard of living.
Large scale investment in infrastructure, including the Dubai International Airport, Jebel Ali Port, Exhibition Centre, Dubai International Financial Centre, the concentration of international hotels, its geographical location between the eastern and western worlds and access points to an estimated 1.5 billion people in the region all combine to create a truly “world-class” city.
Dubai offers a number of impressive new lifestyle developments including downtown, golfing, equestrian and waterfront communities, with off-plan and completed property being available.
The substantial expatriate populations and investors have created a strengthening rental market. Investors can expect returns in the range of 6-10%, depending on levels of borrowing. There is a shortage of completed property so rental yields are high.
Buying property in Dubai has been facilitated by the introduction of property law covering foreign ownership. The Land Registry in Dubai has started to register titles of foreign ownership and the new condominium law has recently been announced, which will establish the owners’ rights and obligations in common hold apartments and communities.
Dubai’s developers issue both original and transfer sale agreements, buying and selling taking place in the developer’s offices. This means the market is largely unregulated and investors are advised to use Cluttons’ services and/or take legal advice as required.
Purchasers can finance up to 97% of the value of the property on the local market, where a wide range of mortgage schemes are available. Alternatively, Cluttons Private Finance can assist in funding your Dubai purchase by restructuring your borrowings in the UK.
The main developers will sponsor the purchaser to obtain a residency visa subject to the applicable immigration laws of Dubai. In turn, the owner of the property can provide sponsorship to their immediate family.
There is no property related tax in Dubai although there is a land registration fee payable to the government of Dubai of 2% of the purchase price and transfer fees are payable to the developer on re-sales.
Key services include:
- purchases, either in the primary market, direct from the developer, or in the re-sale market
- disposals
- lettings
- property management