How to apply for housing land in Dubai
Dubai’s booming real estate market attracts investors from around the world. With properties distributed across the affordable and luxury categories, potential investors and homeowners will always find something to their taste. However, if building your dream house is what you are after, the best option is to apply for housing land in Dubai.
What are the documents required to process this application? This guide attempts to answer this and more for your convenience!
Why Apply for Housing Land in Dubai
With stunning residential properties easily available, why would anyone apply for housing or residential lands in Dubai, you may wonder? Here’s the answer.
First, owning land enables you to build a home that perfectly reflects you. Unlike existing houses, a plot lets you design from scratch. Every detail – from the layout to the materials – can be customised to create a space that truly fulfils your needs and individual style.
Second, Dubai’s real estate boasts a proven record of rising property values. This means lucrative long-term investments, especially for land in high-growth areas.
Third, if the land you purchased offers the option to build rental properties, you can expect a steady revenue stream. Areas with high demand can offer high rental income through well-planned rental properties.
Last, landownership provides you with control over your property. You can develop it according to your taste and preference, whether for personal use, investment or both.
How to Finance Land Purchase in Dubai
Before you initiate the procedure to apply for housing land in Dubai, it’s best to finalise how you’ll finance the purchase of the residential plot.
There are several ways to finance your land purchase in Dubai, each with advantages and considerations. Here’s a breakdown of the prominent methods:
Self Financing:
Many buyers choose to self-finance their land purchase. This approach offers complete ownership with no loan obligations to manage. It allows maximum flexibility to develop the land according to your timeline and vision.
Bank Loans:
Bank loans are a popular option for financing land purchases. Different banks and financial institutions offer various loan terms and conditions.
- Mortgages: Mortgage loans from UAE banks can potentially cover the land purchase and construction costs for those planning to develop the land.
- Developer Financing: Specific projects may offer developer financing with potentially favourable terms.
Off-plan Financing:
Off-plan financing allows buyers to make instalment payments as the development progresses. This approach reduces the upfront financial burden but may involve slightly higher overall costs against a full upfront purchase.
How to Apply for Housing Land in Dubai
Now that you understand the benefits of buying land in Dubai and how to finance it, it’s time to consider the steps to apply for housing land in Dubai.
Step 1: Draw up a buyer and seller contract
Have you found your dream residential plot for sale in Dubai? If the answer is yes, then it’s time to negotiate! Discuss the terms with the seller directly. Whether the payment will be via cash or mortgage is for you to decide.
While hiring a lawyer isn’t mandatory, it is best to understand the legalities of purchasing housing land in Dubai before starting the investment. Also, outline the price, payment methods and all key details to avoid future problems.
Step 2: Sign the MOU
The Dubai Land Department (DLD) website offers a downloadable sale contract (Form F), also known as a Memorandum of Understanding (MOU). You can include your terms alongside the standard ones available on the form.
Once both parties agree, sign the contract before a witness at the Registration Trustee’s office for added security. The Registration Trustee will also hold a 10% deposit on the property until the transaction is complete.
Step 3: Apply for NOC
The final step involves obtaining the No-objection Certificate (NOC) from the developer. This confirms there are no outstanding service bills or charges on the property. Once everything is clear, they’ll issue the NOC, taking you one step closer to the end of the procedure to apply for housing land in Dubai.
Step 4: Transfering ownership at the DLD office
The buyer and the seller will now head to the DLD office with mandatory documents to transfer the ownership. Make sure to bring with you:
- A cheque for the property price, payable to the seller
- The original identification documents of the buyer and seller (Emirates ID and passport)
- The original NOC issued by the developer
- Signed Form F (MOU)
After completing the transfer process, the DLD will issue a new title deed in your name as the property’s new owner. This document serves as legal proof of ownership and should be kept safe.
Furthermore, you can expect to make these payments during the transfer:
- Floorplan (villa or apartment): AED 250
- Issuance of certificate of title deed: AED 250
- Plot map for land outside the jurisdiction of Dubai Municipality: AED 100
- Land map for a combined map with Dubai Municipality: AED 225
- Knowledge fee: AED 10
- Innovation fee: AED 10
These are the requirements to apply for housing land in Dubai. If you still have questions, look at the answers to some commonly asked questions about buying land in the city!
FAQs About How to Apply for Housing or Residential Lands in Dubai
As an expat, where can I buy housing land in Dubai?
Areas like Al Furjan, Dubai Hills Estate, Palm Jumeirah, DAMAC Hills 2 and Jumeirah Village Circle (JVC) offer freehold residential plots in Dubai for expats.
If I buy a freehold plot in Dubai, is it mandatory to construct something on it within a certain time frame?
The timeframe for building on your plot depends on the master developer of your chosen community. Some master communities enforce a construction timeframe to ensure a cohesive aesthetic and maintain property values. However, other communities offer more flexibility with no set deadline to begin construction.
What’s the difference between freehold and leasehold properties?
The difference between freehold and leasehold properties is that freehold grants you full ownership of the building and the land, offering maximum control and the ability to develop or sell at will.
On the other hand, leasehold properties provide the right to occupy a building for a set term (usually 99 years) at a lower upfront cost. However, you don’t own the land and have limited control over modifications.
How can I buy a property in Dubai?
Our comprehensive guide on how to buy a property in Dubai covers all aspects – from laws and mandatory documents to the general process.
What is the cost of buying a housing land in Dubai?
Other than paying the amount of the land, costs of buying property in Dubai comprise:
- Dubai Land Department fees – 4% of the property value + AED 430 for land or AED 40 for off-plan or AED 580 admin fee for apartments and offices
- Property Registration Fee
- Properties/land value below AED 500,000: AED 2,000 +5% VAT
- Properties/land value above AED 500,000: AED 4,000 + 5% VAT
- Fees for issuing the Title Deed – AED 250
- Agent’s fee of 2% of the property/land value
Here’s all regarding the requirements to apply for housing land in Dubai. If you plan to finance the purchase of housing land via bank loan, you must learn how to get a mortgage in Dubai. Similarly, if you have decided to buy a ready property, these freehold areas in Dubai boast stunning apartments and villas for sale.
It’s also a good idea to learn more about the property ownership rules in the UAE for foreigners. You should also be aware that the ownership laws can differ between emirates.
To learn more about the UAE real estate market, subscribe to MyBayut.
