What you need to buy an apartment in Dubai: a guide for Ukrainians

With the end of the coronavirus pandemic, the demand for real estate in the United Arab Emirates (UAE) has increased significantly. The leader of this market today is Dubai – it is here that 4 times more transactions are carried out than in the capital of the country, Abu Dhabi. The most popular areas remain Business Bay, Downtown and Dubai Marina. There are both premium and more budget options. If you buy an apartment in Dubai or a house, you can quite realistically earn about 30% per annum on them, without risking anything. This material will tell you what you need for this.

buy an apartment in Dubai

How to buy real estate in the Emirates?

The entire process of buying an apartment in the UAE can take from 1 to 1.5 months. As a standard, the transaction is always accompanied by legal support. The specialists’ task is to ensure that the property is clean and that the terms of the purchase and sale agreement are legal. The following is an algorithm for making a purchase.

Search for an object

It may take up to a week. It is noteworthy that you can inspect the noticed building either in person, by arriving at the site, or remotely, right from home. This is available both for finished buildings and for ongoing construction.

Conclusion of a purchase and sale agreement

May take up to a couple of weeks. Both parties meet to sign documents, where the key elements of the ongoing transaction must be recorded:

  • location and dimensions of the object;
  • transaction amount and terms, as well as payment conditions;
  • which party pays the associated fees;
  • when the object should be commissioned (if it is ongoing construction).

To buy real estate in Dubai, immediately after signing the contract, the buyer must pay an advance payment of 10% of the total amount. All payments usually take place through escrow accounts, which ensures security.

Obtaining a No Objection Certificate

Usually takes about a week. This point is fulfilled provided that it is decided to buy an apartment in Dubai with a mortgage. In this case, the buyer must obtain a special no-objection certificate from the bank. In addition, you will need a payment slip issued by the developer and a document confirming the transfer of real estate.

Registration of ownership

This takes 2-3 weeks. The buyer pays the balance of the amount specified in the sales contract, after which both parties register the fact of the transaction with the Dubai Land Department. The balance of payment is credited to the seller’s account only after the title of the new owner has been transferred and registered.

The application for registration is submitted in electronic format through a special application of the Office for Real Estate Market Control.

What is important to consider when buying a home in the Emirates?

Dubai is popular among those who want to invest in real estate. Over the past 10 years, prices have risen 1.5 times. Demand here often exceeds supply. For foreigners, purchase is available only in specific areas, but there is no need to worry – there are about 50 of them.

The buyer can receive a resident visa for the purchase of real estate, and his spouse and children can receive a residence permit in the Emirates.

The average price per square meter in Dubai is about $3 thousand. The more exact amount depends on the area. The most elite real estate is located on the island. Palm Jumeirah.

buy an apartment in Dubai

Typically, clients are looking to buy an apartment in Dubai rather than a house. The fact is that an apartment is a better investment. If you rent it out, you can earn up to 8% per annum. As for houses, they are more often purchased on the secondary market than new buildings. Often, the closer the house is to the sea, the more expensive it is.

When concluding a transaction, you will have to pay a whole list of fees. Thus, the tax fee is 4% of the value of the property and is paid 50/50 by both parties. Accordingly, you will have to pay tax upon sale.

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