Dubai Real Estate Basics
Dubai's real estate market is open to foreigners, with many areas offering freehold rights. Rapid development and economic growth in recent years have led to the construction of numerous luxury residential and commercial facilities, making it a popular investment destination. Purchasing real estate typically involves signing a contract through an agent and paying an initial deposit. After purchase, a title deed is issued, officially recognizing ownership. Real estate transactions require a non-objection certificate (NOC) and registration procedures with government agencies, emphasizing transparency and safety. The tax system is also attractive, with no fixed asset tax or capital gains tax, making it extremely advantageous for investors.
01.
Dubai Real Estate Transaction Security
Real estate transactions in Dubai are secured by the use of government-managed escrow accounts to protect buyers' funds. Escrow accounts are a system in which buyers' payments are held until the developer completes the project. Operated under the supervision of the Dubai Land Department (DLD), they reduce the risk of fraud and incomplete projects. Developers are also registered with the DLD and undergo rigorous screening, ensuring reliable transactions. This system guarantees the protection of real estate investors' funds.
02.
Dubai real estate transaction process
The process for second-hand real estate transactions in Dubai is as follows:
First, the buyer and seller agree on terms and execute the contract using a blockchain-based contract that is created online and cannot be left behind, after which the buyer pays a deposit, typically 10%, and the seller obtains a Non-Objection Certificate (NOC).
Once you have the NOC, you can register the sale and purchase agreement with the Dubai Land Department (DLD) and pay a registration fee of 4% of the purchase price. Once the buyer has paid in full, the DLD will transfer the title and issue an official title deed. This process is fast and secure.
03.
Off-plan purchase process
The process for purchasing and reselling an off-plan property in Dubai is as follows: When purchasing, you first pay a registration fee of 4% of the purchase price to the Dubai Land Department (DLD) and a down payment (usually 5-20%) to the developer. You then pay installments as construction progresses. Once 30% of the purchase price has been paid, the DLD issues an "Oqood" and provisionally registers your ownership. From this point on, you have the right to resell the property. To resell, you must obtain the developer's consent (Non-Objection Certificate: NOC) and enter into a resale agreement. After the resale, the new buyer takes over the contract. Once the property is completed and full payment has been made, the DLD officially registers the property and issues a "Title Deed." This process officially establishes your ownership, allowing you to transact with peace of mind.
04.
Preparations required for purchasing real estate in Dubai
To purchase an off-plan property in Dubai, you can apply to purchase without a special visa or local bank account. When purchasing, you will sign a contract with the developer and pay a registration fee (4% of the purchase price) and a down payment to the Dubai Land Department (DLD).
However, after purchasing, you will need to register with Dubai government apps and systems (e.g. DLD's Rest app), which requires a local smartphone number.
You will also need a local number if you wish to obtain a residence visa such as a Golden Visa after purchasing the car. Furthermore, it is recommended that you open a local bank account to facilitate future procedures such as resale, name transfer, and loan applications.
As part of your advance preparations, it is also important to prepare a copy of your passport and confirmation of your initial funds.
