Buying real estate in Dubai: What you need to know
If you want to buy a property, house, apartment, mansion, studio in Dubai, whether to live there with your family or simply as an investment, know that now is the best time to do it! Savor this new year and make your dream come true by investing in a property in Dubai. Acquiring a villa or a penthouse is easy and disconcertingly fast, you too dare to try the adventure. An opportunity not to be missed!
Why invest in Dubai in 2022?
The reasons that motivate the French to invest massively in Dubai are numerous. First, we could quote you the attractive prices per m2, the fascination for the city itself, the facilities for all payment plans, and of course the particularly advantageous taxation.
Above all, Dubai is 90% expatriate! And they did not choose to settle here by chance! The returns on investments are significantly higher than what you can obtain in France, or even in Europe. Be aware that when an expatriate arrives in Dubai, most of the time he will not be able to afford the luxury of buying an apartment, so he will have to rent one! And that’s where you come in, by offering apartments in which you have invested! Their rents are almost always paid by their employers, the real estate market has been able to take advantage of this, by offering high rents for rent, which always give you more financial returns. And there is no tax to pay.
All these benefits should convince you that investing in Dubai is the opportunity not to be missed in 2022. Whether you opt for a rental investment or for the purchase of a main or secondary residence, the agents of The Dubai Life will put all their know-how at your disposal in order to find you the ideal property! We will find you suitable financing plans, without any commission, from the most renowned real estate developers in Dubai. A life of luxury, dreams and annuities opens its arms to you.
It is an obvious reality, the prices per m2 are among the lowest observed for a metropolis of the ilk of Dubai. By consulting the prices offered by our agency, you will quickly realize that very high standard apartments are offered at less than €3,000 per m2, on new constructions, it is an unbeatable price! The services and facilities made available to you are also exceptional, even incomparable. Lagoon and infinity pool, spa, jacuzzi and gym, concierge and club house, Dubai bends over backwards to satisfy your every wish.
How to successfully finance your purchase?
The best and most accessible solution will be to use the payment plans that our agency, The Dubai Life, will negotiate for you. These purchasing facilities allow thousands of people to realize their dreams, why wouldn’t you be part of it? To explain to you simply what it is all about, these payment plans are equivalent to payment schedules. Indeed, thanks to this method, it allows you to pay a small percentage of the total of the property during its construction, your initial financial contribution does not need to be too substantial. Then, you will again pay a part on delivery, either the total balance, or you can again spread your payment over several years after the keys have been handed over!
Everything is done to facilitate home ownership, it is in this sense that it is even possible to pay up to 75% of the total amount of your investment after you move in! The good news does not stop there: real estate developers in Dubai do not require proof of income! The standard is to consider that if you are able to pay 10% of the total amount of your investment, you will also be able to pay the full amount, far from French standards you will agree! All financing of this kind is formally interest-free, in accordance with Muslim traditions.
Make your first rental investment a success
Our agency, The Dubaï Life, strongly advises its investors to place their assets on the smallest surfaces. Indeed, it is through this that you will realize your greatest added value! The studios, as well as the apartments with one bedroom and living room (in France considered as a 2-room apartment) are the most coveted in Dubai. Expatriates, in the prime of life, are numerous in the emirates and the rental market is in perpetual effervescence. Investing in small apartments is the guarantee of an efficient return. We will be able to offer you the properties that best correspond to the current demands on the real estate market in Dubai. The assurance of exponential rental yields as studios are present in all new real estate constructions.
And why not a villa?
Many French people aspire to a city of charm and luxury, what better than buying a villa in Dubai to make your dreams come true? You could start this adventure by betting on a villa that would become your second home, your family vacation home. Then, we are sure, Dubai will have conquered your heart and you will wish to become a permanent resident.
A few years ago, the majority of our clients wanted to invest remotely, from France, with a view to high profitability. From now on, things have balanced out and the trend has evolved, with many French people wishing to live permanently in Dubai, in the company of their families.
Property developers are betting a lot on family reunions, so we can offer you luxurious villas, under construction or off-plan, from €350,000! Family happiness at your fingertips!
The vast majority of real estate sales in Dubai, almost 80%, were made from abroad in 2021. And things are not likely to change as everything is done so that you can invest safely from France!
Our customers have only a few administrative procedures to carry out. All you have to do is send us a photocopy of your passport, as well as all your contact details, The Dubai Life will take care of the rest. We take care of the entire management of your file. All the formalities are done on the Internet, except for the contract which will be sent to you by post. All banking transactions are secure and your payments are made to escrow accounts managed by the administrations and authorities of Dubai.
The best places to invest in Dubai
The main factor of choice during your investment will necessarily be the location! Indeed, this will determine the environment near your home, and it is important that you, investors, take this positioning into account before considering your purchase in Dubai.
Privileged places are legion in the emirate, investing in areas such as the Dubai Marina or Jeremiah Circle Village ensures you a profitable investment from your purchase.
The hotspots for investing are located in business districts, near offices or must-see tourist spots such as the Burj Khalifa.
The Marina Bay, an investment of choice
The ultimate in terms of business center is the Dubai Marina, everything here has been designed for the financial market and businessmen from all over the world gravitate there. For more or less long stays, people traveling for business will choose this destination.
Beyond its incredible unobstructed views of the water, the Marina bay is an advantageous choice if you want to make a risk-free first investment. Its proximity to Dubai Internet City and Dubai Media City guarantees you unparalleled shopping comfort.
Dare the Business Bay in Downtown Dubai
Investment opportunities, at truly affordable rates, abound in Dubai! Its city center is home to the tallest skyscraper ever built, the Burj Khalifa! Its gigantic shopping centers, also called Malls, its tourist attractions are now internationally recognized, and they attract millions of visitors each year.
And Business Bay is literally the center of business, where it all happens! This site represents real potential if you want to make your contribution to the building of the world of investment in Dubai!
In summary the investment in Dubai:
– A real estate transaction is completed on average in one to two weeks.
– All foreigners acquire property rights for a maximum of 99 years.
– In Dubai, the real estate market is still accessible to everyone, unlike Paris, Berlin or New York
– Your bank loans will be for a maximum of 25 years.
– Investors will need to own 20% of the amount of the property to proceed with the transaction.
– You can buy your home remotely as long as you have a bank account.
But then how to invest in Dubai as a non-residential?
We tell you everything you need to know if the rental investment in Dubai
Investing all or part of your savings is not without risk, however financial investment in real estate in Dubai remains a safe bet! In order for you to have the keys to success in your hands, you must take into account the specificities of the international real estate market, and more specifically, in this case in Dubai. More and more French people decide to buy an apartment or a villa on the spot, and the intention of our agency, The Dubaï Life, is to detail you the advantages and benefits of rental investment in Dubai.
Real estate investment in Dubai, for a foreign national, can happen very quickly, but this requires that you are very well advised or that you know the particularities of this market perfectly. The purchase of full ownership, known as Freehold, has been possible for a foreigner since 2002, when the administrative procedures were standardized. In 2006, the legislation changed to provide even more security to foreign investors.
Know that Dubai is one of the cities where real estate acquisitions are made in record time, while respecting the security needs of buyers.
The purchase protocol in Dubai
To start, you need to know the ins and outs of this market, and its lexical field. There are several categories of investments, we will list them for you. First of all, there is the rental investment, it will suit any buyer wishing to invest in Dubai for the sole purpose of producing rental income. Then you will find the so-called holiday investment, in the event that you wish to buy a second home to spend part of your holidays there, or even part of the year. Finally, we have the residential investment that will suit buyers wishing to live year-round in Dubai and make their property their main residence.
What are your needs, your budget and the date on which you want to invest?
1.Define your purchase criteria
Before making the purchase, it is essential that you determine what your investment criteria are. The questions you should, for example, ask yourself are the following:
How many rooms do you want at least?
Do you prefer to buy off plan or an apartment already built?
What type of property: villa or apartment?
In which neighborhood do you want to invest?
Also remember to master your budget, to do this, you need to know your investment capacity and the share of your savings that you want to allocate to this purchase of real estate in Dubai. In the event that you do not have the full amount requested, you will have to borrow money, it remains to be seen whether you prefer to take out this mortgage in France or in Dubai! These are questions that you absolutely must answer before considering any investment.
Finally, you will have to think seriously about when you want to invest, is it rather as soon as you find the property of your dreams, in a few months, within 3 months to 1 year, or in the longer term! This precision may seem futile to you, but the real estate sector in Dubai being in perpetual evolution, prices can vary completely and the share of your initial contribution can change considerably!
2. Remote purchase offers or on-site visit
As soon as our real estate agents have received all your purchase criteria, we can start suggesting apartments or villas that suit you!
In case you are not a resident of Dubai, you will need to find time to come here so that we can start the visits. Remember to ask for all information and details before considering air travel to Dubai. Know that virtual tours allow you to save a lot of time, and to better target your needs!
Don’t worry if it’s impossible for you to get to Dubai, again, we’ve thought of everything! It is possible to do everything remotely from France. Ideally, it is recommended to come to Dubai at least once to make sure everything is in order, so you can really appreciate the environment that sumptuous Dubai can offer you.
3. Initiate negotiations and sales compromises
When you have found the property of your dreams, you can position yourself by making an offer to purchase. Our real estate agents will take care of drafting a MOU, the Memorandum of Understanding, what is called, more commonly in France, the sales agreement; it is a written agreement between the promoter and you, the buyer.
If you are not immediately able to send your title deed, you will be required to pay a 10% deposit for the reservation of your purchase. It is also at this time that the seller will have to give you the NOC, Non Objection Certificate. This means that the seller is entitled to sell this property and that he has settled all the charges incumbent on him.
If you have opted for the purchase off plan, all these steps will be taken directly with the property developer. The payment plans being different depending on the real estate developer, our agency, The Dubai Life, takes care of communicating all these details to you.
4. Open your bank account in Dubai
To open a bank account, we will need your last 6 statements, then the opening will only take an hour! This is essential in order to be able to deposit money into your account. This also allows you to send cash from France and to be able to issue bank checks. Your French banker will have to certify the originality of your bank statements. This is a crucial step for any new investor in Dubai, but the steps being really simple, it will only be a simple formality!
5. Transfer of ownership
We are coming to the end of this investment adventure, your dream is within reach! When you have gathered all the required documents, provided them to us and your funds have arrived in your new bank account in Dubai, our real estate agents will take care of the rest! That’s when we’ll schedule an appointment at the Land Department. It is a government institution in Dubai that deals with property transfers, it is specific to this real estate market.
You, the buyer, seller or developer, and the real estate agents will need to meet at the Land Department. This is where the financial transaction takes place. This department will ask you to pay a fee corresponding to approximately 4% of the total purchase amount of your property. To get an idea, the average time for this type of transaction takes between 4 to 15 days.
6. Take out a mortgage in Dubai
Just like opening a bank account, the procedures for taking out a mortgage in Dubai are relatively easy! Whether you are French investors or expatriates, the procedures remain, more or less, the same. Note however that for expatriates, it is necessary to justify a salary of at least 2400 € per month and constant income over time. Your last years of income will therefore be studied, but the formalities are much less difficult than in France, you will certainly be able to buy a property if you meet the required criteria!
Always for the sake of facilitating transactions with foreigners, banks in Dubai are committed to wanting to issue an agreement in principle within 3 to 4 days, you can see for yourself that this has nothing to do with the French banking system!
Supporting documents to be provided
Here is the list of supporting documents most frequently requested by banking institutions:
A photocopy of your valid passport!
Bank statements. If you are employed, you will need to provide your last 3 months, and if you are self-employed, you will need to provide proof for the last 12 months.
An identity card issued by the Emirati
All your salary certificates
Your tax return for the current year or the previous year from your country of origin, France.
Once all of these parts have been grouped together, you will be able to claim a bank loan in Dubai. However, our agency, The Dubai Life, strongly recommends that you frequently analyze the interest rates charged by banking establishments. Indeed, the latter tend to vary greatly according to the rates of the Emirates Interbank Offered Rate. This is why it is preferable to consult as many bank branches as possible in order to have a global vision of the financial market in Dubai! After talking to many banks, you can make your choice with peace of mind, knowing that you have found the most attractive interest rate possible for your new investment!
Thinking about the agreement in principle: a guarantee
Also think, before starting the start of your apartment visits, that the bank gives you its agreement in principle. Without this, it is possible that it will compromise possible negotiations in the event of a crush. You easily understand that sellers need guarantees before reserving their property for you! In the event that you do not succeed in obtaining this agreement in principle before starting your visits, you will always have the option of paying a deposit, which will have reservation value.
Be aware that some French companies, known abroad or recognized worldwide, are automatically validated by banking establishments as employers providing sufficient guarantees. Employees hired in this type of company often have a better chance of having their loans granted, in the event that they do not have the possibility of providing all the supporting documents requested by the bank.
Conventional loan and Islamic loan
Sharia law does not allow a person or institution to profit from lending money, in other words, to charge an interest rate. Islamic loans are structured differently. It is the bank that buys the asset and then sells it at a profit. The applicant then pays for his property with monthly installments. Alternatively, the bank can buy the property and lease it. Applicants can choose their type of loan, and Islamic loan is very popular among Emiratis.
Some other details differ when it comes to Islamic loans. No interest will be charged on late payments, but a flat rate may apply instead. Some applicants may find this interesting. With a traditional loan, early payment is capped at 3% of the outstanding capital (plus VAT). Islamic loans are not bound by the same regulations and prepayment charges vary by bank.
Another good news, you should know that in Dubai, your monthly loan payments (all repayments combined!) can never exceed 50% of your entire income! A way to ensure serene reimbursements that will not affect your good financial management.
7. What are the necessary contributions to buy in Dubai?
In an obvious concern to protect its banking system, the government leaders of Dubai have obliged nationals of the United Arab Emirates to pay a deposit of at least 20% on their principal residences, if the total value of their property real estate does not exceed 1.2 million Euros, or 5 million AED.
In the event that the property is worth more than 5 million AED, these same nationals must pay a deposit of at least 30%! There is, however, an exception to these obligations, in the event that UAE nationals use an accommodation scheme, then the down payment would only be 15%.
For all French expatriates residing in Dubai, or foreigners, the laws are slightly changing. In this case, you will have to pay a deposit of at least 25% for any first investment in real estate whose value does not exceed 5 million AED, or 1.2 million euros. For any purchase above this amount, the deposit will increase to 35%. It sometimes happens that the amounts of these installments reach 50% of the initial price.
8. Important points to check during your visits
We are now going to show you all the points you will need to pay attention to during your apartment visits so that your investment dream becomes a reality.
Outside your property:
Noise: construction of real estate projects nearby, the presence of a major highway. Empty land nearby often means that future buildings will be built here.
Transport: Depending on your ideals, check that your apartment is perfectly served.
Shops: If you want a hectic nightlife, properly analyze your neighborhood, and note the presence of shops, bars or restaurants.
Your pets: Always remember to ask if your proteges are admitted and welcome.
Although the terms of purchase in Dubai may seem simplistic, we strongly advise you to use a real estate agent! The latter is experienced and broken to all tests in terms of negotiations. He will know how to select the property that will tick all your boxes, he will write the sales agreement for you and check all the supporting documents necessary for this sale.
If after reading this article, you are interested in investing in Dubai, we advise you to contact us via The Dubai Life website, we will be delighted to provide you with all our knowledge. We will show you the different investment possibilities that suit you best, and we will be by your side until the final transaction!
Dubai is the most populous city in the United Arab Emirates, and it too is the life of all records! Skyscrapers that you will never see elsewhere, such as the 818-meter-high Burj Khalifa, Huge Malls, also called shopping centers, specially designed for a luxurious clientele and insane real estate projects! Dubai is the city of all possibilities, and you too can be part of it! Formerly, there were only small ports and a hostile desert here, but oil has achieved the impossible, making this khalifa a paradise on earth!