Answers to the main questions about real estate investment in Dubai
Drawing on our experience as Dubai's leading French-speaking real estate agency, we have prepared this FAQ with answers to the most frequently asked questions about investing in property in Dubai.
Do you really own property in Dubai?
All the properties marketed by our agency are freehold, i.e. in full ownership, exactly as in Europe. You will own both the land and the building, forever. It is possible to become a full owner since a 2006 law, which allowed full ownership for all nationalities in 33 districts of Dubai.
What are the notary fees in Dubai?
The notary fee is 4% of the price of the property you are buying. For off-plan purchases, the Dubai Land Department will act as the notary. The developer will do all the legwork and will forward your purchase contract to the Dubai Land Department for registration. The Dubai Land Department will also send you your title deed directly by email once the registration is completed.
Can several people buy a property together?
It is quite possible to join together to buy a property in Dubai. You can join forces with family members or friends, and you will not be asked for any proof of ownership.
What payment methods are accepted in Dubai to pay for a property?
Many means are accepted by the promoters within the framework of the payment of a real estate.
The accepted means of payment are :
- Bank transfer
- Bank card
- Cheque issued by a local bank
- Species
- Crypto-currency
Not all of the payment methods listed below are necessarily accepted by all sponsors and proof of payment may be required.
Third-party payments are also accepted by many sponsors.
Is there an agency commission to pay when buying an apartment or a villa in Dubai?
If you buy a property on plan in Dubai with the agency Dubai immo, you will not pay any agency fees. We will be paid by the developer.
When buying an apartment or villa on the secondary market (old or second-hand), you will generally pay 2% agency fees.
What taxes apply to real estate in Dubai?
Apart from the notary's fees you pay at the time of purchase (4% of the property price), you pay no taxes afterwards.
In Dubai:
- No property tax
- No tax on rental income
- No capital gains tax
- No estate tax
- No housing tax to pay if you occupy a property that you own
Is it possible to obtain a resident visa if I invest in real estate in Dubai?
If you invest in real estate in Dubai, you may be eligible for a resident visa as a real estate investor. The duration and type of visa will depend on the amount of your investment.
- From AED 750,000 to AED 2,000,000, you will benefit from a 2-year renewable visa.
- From AED 2,000,000, you will benefit from a Golden
Is it possible to invest remotely?
It's perfectly possible. The purchase process is carried out securely and remotely, thanks to the purchasing processes set up by the developer and the Dubai Land Department.
What is a payment plan?
This is a payment schedule, which allows you to pay for a property over a pre-determined period of time. In Dubai, payment plans are interest free (0% interest rate).
Example 1:
- 20% to be paid upon reservation
- 30% to be paid during construction
- 50% to be paid upon handover
Example 2:
- 20% to be paid upon reservation
- 1% to be paid every month for 80 months
What is the RERA license?
This is the license required to work as a real estate agent in Dubai. When dealing with a real estate agent, you should always make sure that the person you are dealing with holds a valid RERA license, which must be in his or her name. Don't hesitate to ask your real estate agent for a copy of the RERA card.
Is it possible to rent a property on Airbnb in Dubai?
It's perfectly possible to rent out your Dubai apartment or villa on Airbnb, regardless of the neighborhood.
What are the rental management fees in Dubai?
In the case of a yearly rental, the agency fee amounts to 5% of the annual rent. These fees are paid by the tenant and the owner has nothing to pay.
In the case of a short-term rental on Airbnb, for example, the management fees are 15% to 20% of the rent received. These costs cover cleaning, staff, management of the entry and exit of tenants, etc.
What is the average profitability of a property in Dubai?
The average profitability of a property in Dubai is between 7 and 12%, depending on the date of purchase and the type of rental chosen (short-term or annual rental).
Is it possible to buy a property in Dubai with a foreign company?
This is not possible at present. To purchase a property in the name of a company, the company will have to be registered in the UAE.
How much are the cheapest apartments in Dubai?
The cheapest apartments in Dubai will be studios priced around €100,000.
Is there a property tax in Dubai?
There is no property tax to pay in Dubai, whatever property you own.
How much are the cheapest villas in Dubai?
We can offer you 3-bedroom villas for under €300,000.
How can I be sure of the seriousness of the property developer?
Dubai Immo's real estate agents will always present you with programs that have already been completed by the developer behind the project that is being proposed to you.
Dubai Immo's teams check the seriousness of the property developer and the quality of the project before marketing it.
Who is the largest real estate developer in Dubai?
The number one property developer in Dubai is Emaar. This developer is partly owned by the government of Dubai. It is behind Downtown, Dubai Marina, Dubai Mall and Burj Khalifa.
Is it possible to resell my apartment or my villa during the construction?
It is perfectly possible to resell a property during its construction, and this is a frequent practice in Dubai.
Is it possible to get a mortgage in Dubai?
If you are a resident, the banks can finance up to 80% of the property.
If you are a non-resident, local banks can finance up to 50% of the price of the property you are buying.
In the case of a purchase off-plan, it will be necessary in any case to assume with your treasury the amount of the expiries whose payment is awaited during construction.
Is it possible to get financing in France to buy a property in Dubai?
From our experience, it is very difficult, if not impossible, to get financing in France to invest in Dubai.
Is there a tax treaty between France and the United Arab Emirates?
There is a tax convention between France and the United Arab Emirates. You can download it on this link. emirates-united-arabes_convention-with-the-emirates-united-arabes_fd_2138-2
Are payment plans interest-free?
The payment plans offered by Dubai real estate developers are interest free.
No bank is involved, and the contract is signed only between the property developer and the buyer.
The amount of the instalments is fixed in advance.
What happens if I can no longer pay the installments?
If you can no longer pay your instalments, it is imperative to inform your Dubai Immo real estate agent, who will try to find a solution for you with the developer.
It is possible to resell the apartment or the villa during the construction, and you will be able to recover all or part of your investment, and make a possible capital gain.
If you do not respond to the developer or do not show any sign of life for more than 6 months without payment, the developer can also cancel the sales contract and you can lose up to 40% of the initial value of the property.
If you have other questions or if you simply wish to discuss with a professional of the agency, schedule a phone or video appointment via the tool below: