Tips on Buying Property in Dubai

The demand for property in Dubai from foreign investors is growing rapidly. At the frontline are British investors who enjoy Dubai’s lifestyle, cosmopolitan atmosphere and sub-tropical climate.

Prime Areas for Property in Dubai

The two major areas in Dubai- Bur Dubai (older city) and Deira Dubai the ultra modern face of the city facing Dubai Creek are the hub of property transactions. The residential locations favored by Westerners are

• Jumeirah, coast side to the southwest of the city centre
• Dubai Marina
• Al- Garhoud on the northeastern side of the creek and closer to the airport.

At moment most of the residential developments are happening in the west side of the city where a majority of expatriate purchasers are focused. It is the area approximately 25 sq. km around the beaches and city-centre.

Choose the type of home

British purchasers prefer apartments and villas located in secure complexes where ample leisure facilities are available including tennis courts, swimming pools and gyms. All these new developments are luxurious and constructed with the latest technology at prime locations.

These include Palm Island, a vast resort development in the shape of a palm projecting 5 km into the sea off Jumeirah.

Understand the Process

The international property market in Dubai still has to grow. Here the only piece of paperwork required is an innocuous sales agreement. But signing it on the dotted line, consult a local lawyer or those familiar with Dubai as the document is a serious one and legally binding.

When you buy property in Dubai it must be known that buying freehold property in Dubai does not incur survey fees. Also Stamp Duty is absent. The only significant cost is a 1.5 per cent land registry fee payable on completion. The absence of a structured purchase process mandates dealing with reputable developers or agents.

Financing the purchase

Paying cash is recommended only to those who can afford it. The other options are remortgaging your overseas home or arranging a mortgage of the Dubai property through a local lender. Mortgages are difficult in Dubai. Self-certification mortgages are hard and the paperwork can be cumbersome.

Tax rules in Dubai

Dubai's massive oil revenues make it unnecessary for the government to raise income through direct taxation. As a result, taxes are non-existent and Dubai is categorised a 'no tax' emirate. When you put out a property for sale, be cool as Dubai does not levy any Capital Gains Tax.

Yashika is an avid reader and writer with a special interest in real estate Dubai and the property market. She has experience in the real estate marketing, property sale & purchase and dealing in rental properties.