FAQs by first-time home buyers in Dubai
- FAQs by First-Time Home Buyers in Dubai
- FAQs About First-Time Home Buying Procedure
- FAQs About Mortgage in Dubai for First-Time Home Buyers
Taking the major leap from tenant to homeowner can be challenging for many. Several queries come to mind, especially for first-time home buyers, such as whether you can purchase property as an expat, how easy it is to take loans, how much down payment you need to put in and much more. To help you better understand homeownership and the processes involved, here’s our comprehensive list of FAQs by first-time home buyers in Dubai.
Frequently Asked Questions about First-Time Home Buyers in Dubai
A major chunk of Dubai’s demographic comprises expats from various nationalities. And many aim to invest in the emirate’s booming real estate market. Here’s a list of common questions for first-time home buyers in Dubai.
CAN EXPATS PURCHASE A PROPERTY IN DUBAI?
Yes, expatriate residents and non-resident investors can buy a property in Dubai on a freehold in designated freehold areas in Dubai. Some areas allow expat buyers to purchase properties on a leasehold basis.
WHAT IS A FREEHOLD PROPERTY OWNERSHIP?
Freehold property ownership gives the buyer absolute ownership of the property, including the land the property is built on, without any time restrictions. According to the laws set by the Dubai Land Department, the freehold buyer is registered as a “landowner” in the registry. It also grants them the title deed for the property.
WHAT IS LEASEHOLD OWNERSHIP IN DUBAI?
In a leasehold property, you acquire the right to occupy the unit for a specified period. It’s similar to a long-term lease, typically for 99 years, but shorter durations exist. This ownership form grants access to the unit but not the land it was constructed on.
AS A FOREIGNER, CAN I BUY A RESIDENTIAL PLOT IN DUBAI?
Yes, there are select freehold residential plots in Dubai that you can invest in to build your home.
CAN YOU OWN A 100% PROPERTY IN DUBAI?
Yes, as an expat, you can own a property if you purchase it in one of the freehold areas in Dubai.
What are the freehold areas to buy apartments as an expat in Dubai?
Here’s a list of freehold areas to buy your first apartment in Dubai.
- Arjan
- Barsha Heights
- Bluewaters Island
- Business Bay
- Discovery Gardens
- Downtown Dubai
- Dubai Creek Harbour
- Dubai Culture Village
- Dubai Harbour
- Dubai Hills Estate
- Dubai International Financial Centre
- Dubai Investment Park
- Dubai Marina
- Dubai Production City
- Dubai Science Park
- Dubai Studio City
- Dubailand
- Jumeirah Beach Residence
- Jumeirah Lake Towers
- Liwan
- Mirdif
- Mohammed Bin Rashid City
- Old Town
- Remraam
- The Greens
- The Views
WHICH AREAS CAN EXPATS BUY VILLAS IN DUBAI?
Here’s a list of freehold areas where first-time home buyers can buy villas in Dubai.
- Arabian Ranches
- Emirates Hills
- DAMAC Hills
- DAMAC Hills 2
- Dubai Hills Estate
- Jumeirah Islands
- Jumeirah Park
- Reem
- The Lakes
- The Meadows
- The Springs
- The Sustainable City
ARE OFF-PLAN PROPERTIES MORE AFFORDABLE THAN READY-TO-MOVE ONES?
Yes, off-plan properties are more affordable than ready-to-move-in options. These properties are sold based on blueprints, and developers often offer early bird discounts to attract buyers.
WHAT IS THE BEST AGE TO OWN A HOUSE IN DUBAI?
There is no particular age to buy a house in Dubai. However, if you need a home loan to purchase a property, you must be over 21 years old and have a stable income.
FAQs About First-Time Home Buying Process in Dubai
What are some things to keep in mind while buying a property in Dubai?
It’s easy for foreigners to purchase a property in Dubai. However, knowing the various steps before purchasing your first home in Dubai is important. Here are the main factors to consider:
- The property location
- The facilities it provides
- Make sure you have all the paperwork ready
- Hire an agent
- Developer’s reputation
- Apply for NOC and register your property via RERA Dubai
HOW MUCH DEPOSIT/DOWNPAYMENT DO YOU NEED TO BUY PROPERTY IN DUBAI?
The initial downpayment for a property in Dubai is based on your residency status in the emirate. If you are a UAE national, the down payment to buy a property in Dubai is 20%. For expatriates, the initial deposit to buy a house is 25%. For example, if a house costs AED 1 million, an expat must make a down payment of AED 250,000. On the other hand, a UAE national is required to pay AED 200,000 for the same property.
WHAT IS THE MINIMUM SALARY TO BUY A HOUSE IN DUBAI?
You’ll need at least AED 20,000 monthly salary to purchase a ready property. If you are considering a loan, your monthly income should range from AED 15,000 to AED 25,000 or more.
DO FIRST-TIME HOME BUYERS IN DUBAI NEED AN AGENT?
Yes, if you are buying a property for the first time in Dubai, it’s essential to let an experienced real estate agent handle the process. Whether you are a local or an expatriate, there are several rules and regulations to remember while preparing paperwork for your sales deed and other documents. A real estate agent has the resources and skills to cater to the sales process. Do your research before opting for an agent.
WHAT IS THE PURCHASE COST AND FEES TO BUY PROPERTY IN DUBAI?
Here’s a list of major costs of buying property in Dubai, but there are other charges that you should be aware of, including hidden costs.
- Dubai Land Department (DLD) fee: 4% of the property’s purchase price
- Property Registration fee:
- Properties below AED 500,000 will cost AED 2,000 + 5% VAT.
- Properties above AED 500,000 will cost AED 4,000 + 5% VAT.
- Mortgage registration fee: 0.25% of the total mortgage amount + AED 290
- Title Deed issuance charges: AED 250
- Property valuation fee: Ranges between AED 2,000 and AED 3,500 + 5% VAT.
- Real estate agent commission: 2% of the purchase price + 5% VAT.
WHAT DOCUMENTS ARE REQUIRED TO BUY A PROPERTY IN DUBAI?
The list of documents required for buying a property in Dubai may vary depending on the nature of the purchase. But here are some of the most common documents that you may need, as per the Dubai Land Department’s official website:
- UAE ID of both seller and purchaser (for verification purposes only, no copies required).
- A manager’s cheque for the property price payable to the seller
- The original identification documents of the buyer and seller (Emirates ID, passport)
- The original NOC issued by the developer
- Signed Contract F (MOU)
WHAT IS AN NOC?
A No Objection Certificate (NOC) is provided by the developer. It confirms that the current owner has paid all dues and charges. To obtain an NOC, request one from your developer. Submit this certificate to the relevant government department for approval. As a buyer, this proves that the previous owner has settled all remaining dues.
WHAT ARE THE LEGAL STEPS TO BUY PROPERTY IN DUBAI?
According to the property laws, the steps for property ownership in Dubai include:
- Formulating a contract between buyer and seller.
- Signing Memorandum of Understanding (MOU).
- Application for a No Objection Certificate (NOC).
- Meet the seller at the Dubai Land Department (DLD) to transfer the property.
FAQs ABOUT MORTGAGE IN DUBAI FOR FIRST TIME HOME BUYERS
Who is eligible for a loan in Dubai?
As a first-time home buyer, knowing how to get a mortgage in Dubai is essential. Here’s how you can qualify for a mortgage to purchase a property.
- You must be a UAE national or a resident
- Your age should be between 21 to 65 years old
- Your monthly income should be at least AED 15k (for a salaried individual) and AED 25k (self-employed)
- It’s also important to know how much salary is required for a home loan in Dubai (the amount may vary depending on the bank).
CAN I GET A MORTGAGE IN DUBAI WITHOUT A JOB?
Unfortunately, you cannot apply for a mortgage in Dubai if you are unemployed or have no source of income or a business.
WHAT DOCUMENTS ARE REQUIRED TO OBTAIN A HOME LOAN IN DUBAI?
While there might be differences between banks, the documents required for a mortgage application in Dubai generally include:
- A copy of your passport and visa.
- A photocopy of your Emirates ID.
- A salary certificate as proof of employment.
- Proof of residence, such as a tenancy contract copy or DEWA bill.
- Pay slips and bank statements from the last six months.
- Recent credit card statements.
For non-residents seeking a home loan in Dubai, the required documents are:
- A copy of your passport.
- Bank statements for the past three months.
WHAT ARE THE DIFFERENT TYPES OF MORTGAGES IN DUBAI?
There are several types of mortgages in Dubai, but they are primarily variable-rate and fixed-rate mortgages. Select a mortgage that suits your requirements and lifestyle.
This concludes our list of first-time home buyers in Dubai FAQs. We’ve compiled a comprehensive list to help you purchase your dream home in one of the best cities to live in the world. For more information and insights about the property market, explore Bayut’s Dubai Sales Market Report for 2023.
