Yes. Amlak, Tamweel, HSBC, Lloyds, Mashreq Bank, RAK Bank, National Bank of Dubai, United National Bank, Abu Dhabi Commercial Bank and Standard Chartered Bank to name a few lend on both ready to occupy and off-plan projects. Each one has different rates and terms. Some only lend to residents. You can also get mortgages internationally for property in Dubai. HSBC in the UK currently lends an asset-based mortgage.
Firstly, lenders do not lend on every project currently being built. Often, developments are sold with no lendings on at all (given the favourable payment structure system in Dubai, and not meaning they aren't saleable). On the other hand, it is possible to get a mortgage on many examples of off-plan property here, unlike most places in the world.
It is usually based on your monthly income, less expenses, and then divided to three parts. This gives the figure used to calculate from, for each month over the term. They do not base it on how well the asset might perform, nor does it allow low-loan-to-value (i.e. large down-payment with a small loan). This makes it limited. Even if you are earning a seriously good wage, do not assume that a bank will lend you substantial sums.
Yes. This is preferable. Most lenders will work out how much they are likely to lend to you before you have a specific property in mind. This means you can then go looking for something you know you can afford.
A transfer fee is payable if you transfer your property to someone else. It is an administrative charge levied by the primary developer.
Yes. But your contract should state that you are entitled to one. Residence visas are subject to normal immigration regulations. They are renewable every three years for example. They do not replace a work permit and if you have a work permit, your residency will come from that.
Most states expect you to pay tax on assets abroad. In some jurisdictions, however (such as the UK), it is possible to not pay, by ensuring that rental income or proceeds from the sale of a Dubai property remain offshore. The best way to do this is through an offshore company or in a deposit account from an international bank where you can keep revenue and whcih allows you to deposit and transfer funds with a certain amount of privacy.
Typically, developers delay the staggered payment schedule if a property is not completed on time.
While resident expatriates can generally borrow between 70% and 80%, non-residents can generally borrow 60% to 70%. It all depends on the lender, and the project they are lending on.
Developers reserve the right to cancel the property reservation agreement and re-possess the title of the property in case of default from the property purchaser. In such a case, the property purchaser typically stands to lose the instalments paid already and 30% of the property value.
If the property purchaser delays his installment payment beyond a grace period of normally 30 days from the date when the payment is due, they are usually charged interest at the rate of approximately 6%, and the developer typically reserves his right to cancel the contract.
a) Liberalisation of the real estate sector - expats can now own property
b) High tax-free yields on freehold property rental
c) Globalisation and its effects on property prices in metropolitan cities worldwide
d) Favourable interest rate environment
e) Mortgages & homeowner finance available
f) Granting of "permanent" residency upon purchase of freehold properties
g) Great Value - Real estate land & apartment valuations are cheap compared to international prices
h) Conducive lifestyle: safe, tax haven, secondary and tertiary home for international buyers
i) Dubai's robust economic growth p.a.(GDP)
j) Dubai's robust population growth p.a.
k) Large mid-income population bracket with high disposable income
l) Dubai is the regional entrepôt & tourism center
m) UAE is an open, welcoming & tolerant state with investor-friendly business policies
The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death.
Typically, the prospective Buyer and Seller enter into an MOU, wherein the buyer commits to purchase the property and the seller commits to sell the property. In a purchase transaction, the buyer pays an initial booking deposit (of not more than AED 100,000 for villas and apartments) to the seller.
If the buyer withdraws from the transaction, the buyer forfeits his booking deposit. If the seller withdraws from the transaction, the seller refunds the booking deposit amount. The buyer pays the balance considered to the seller upon transfer of the property to the buyer.
Developers usually charge for maintenance at rates varying from AED 2 to AED 8 per year per sq. ft. of the built-up area for the unit purchased. Developers may also charge for parking and rates usually vary from AED 2000 to AED 4000 per parking bay (this is a one-time charge).
Most studios and one-bedroom units are the same size. Some units have balconies and some do not. Sometimes the ones located on the corners of the building are slightly bigger. Retail shops on the ground floor vary in size and are priced accordingly.
Studios - Size approximately 480 Sq. ft.
One Bedroom - Size approximately 716 Sq. ft.
Shops - Size varies, upwards and downwards of approximately 500 Sq. ft.
The buyer of a freehold property in Dubai only needs to provide a copy of his passport papers to purchase a property in the primary market, i.e., directly from a developer. A company purchasing a property must provide the developer the company's registration documents (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution).
Either entity, i.e., a person or a company, needs only to sign a property reservation contract with the developer to purchase a property. On handover of the property to the property purchaser, the property purchaser will have to register his property at the Govt. of Dubai Lands Dept. to obtain a title deed.
The property purchaser would be responsible for paying the fees to the Govt. of Dubai Lands Dept. to obtain a title deed (this normally amounts to 2% of the property value). The property value must be fully paid up so as to obtain a Title Deed from the Govt. of Dubai Lands Dept.
Yes, a Tenant can terminate the contract, provided the Tenant will notify the Landlord two (2) months in advance and will be paying two (2) months rent as cancellation from the day of vacating the property and all the utility bills should be settled.
No, the Landlord has no right to disconnect any utility service in the Property.
For Individual, tenant should have a valid passport and Residence Visa copy (Original copies of these documents should be shown by the tenant to the Property Broker).
For Corporate Tenant, a valid Trade License, General Manager's Passport Copy(if he is signing the the Agreement) and valid passport of the Occupant.
The Landlord shall provide the Title Deed, Landlord's valid Passport and Residence Visa copy, if mortgage, Bank Statement and copy of Mortgage and DEWA Account
The Tenant has to pay the agreed Annual Rent depending on how many cheques both parties agreed with, the Security Deposit, the Commission of the broker, deposit for DEWA and Empower(if applicable) and Ejari Registration.
Security Deposit 5% of the Annual Rent paid by the tenant in advance and held in reserve in the event of the depositor failing on a contractual obligation to protect the Landlord in a real estate lease. It covers Loss of Rent, Damage to the Property, Lost of Security Keys and Repairs that are not wear and tear.
Yes, a tenant can use a third party cheque provided they will be submitting a Letter of Indemnity from the Third Party and a passport or Trade License if it is a Company Cheque
Yes, the Law clearly states that the Rent's Committee shall not consider any claims unless the lease is registered with Ejari.
Rent Increase Calculator is available in the website of Land Department, it will provide you the current market price and the percentage of increase that can be applied in the Annual Rent of the property. You can go to this link: http://www.dubailand.gov.ae/english/Tanzeem/Rentals/Rental_Increase_Calculator.aspx
Required documents to initiate Ejari registration include: 1. Copy of the title deed, 2. Copy of the tenancy contract, 3. Copy of the landlord’s passport, 4. Copy of the tenant’s passport and visa page. RERA charges per registration of tenancy contract is AED 160.00. Once the documents are submitted and the payment is made, registration will usually be completed at the same time.