Many people struggle with the transition from tenant to homeowner. Several questions arise, particularly for first-time home buyers, such as whether expats may buy property, how simple it is to get a loan, how much down payment is required, and much more. Here’s a thorough collection of frequently asked questions by first-time house buyers in Dubai to help you better understand the process of becoming a homeowner.
FREQUENTLY ASKED QUESTIONS ABOUT FIRST-TIME HOME BUYERS IN DUBAI
Expats of different nationalities make up a significant portion of Dubai’s population. Many want to invest in the emirate’s burgeoning real estate industry. Here are some frequent questions for first-time home buyers in Dubai.
CAN EXPATS BUY A PROPERTY IN DUBAI?
Yes, expatriate residents and non-resident investors may buy freehold properties in Dubai’s designated freehold areas. Some places enable expat buyers to acquire property on a leasehold basis.
A FREEHOLD PROPERTY OWNERSHIP: WHAT IS IT?
Freehold property ownership provides the buyer with absolute ownership of the home, including the land on which it is built, with no temporal constraints. According to Dubai Land Department regulations, the freehold buyer is recorded as a “landowner” in the registry. It also gives them the title deed to the land.
WHAT IS A LEASEHOLD OWNERSHIP IN DUBAI?
A leasehold property grants you the right to occupy the unit for a certain amount of time. It’s similar to a long-term lease, which normally lasts 99 years but can be shorter. This ownership type gives you access to the unit but not the land it was built on.
CAN A FOREIGNER PURCHASE A RESIDENTIAL PLOT IN DUBAI?
Yes, you may build your house on certain freehold residential plots in Dubai.
CAN YOU OWN A 100% PROPERTY IN DUBAI?
Yes, as an expat, you may own property in Dubai’s freehold areas.
WHAT ARE THE BEST FREEHOLD AREAS TO BUY APARTMENTS AS AN EXPAT IN DUBAI?
Here is a list of freehold locations where you can buy your first flat 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 OF DUBAI CAN EXPATS BUY VILLAS?
Here is a list of freehold regions 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 CHEAPER THAN READY-TO-MOVE ONES?
Yes, off-plan properties are less expensive than ready-to-move-in choices. These properties are offered based on plans, and developers frequently provide early-bird discounts to draw in buyers.
WHAT IS THE BEST AGE TO OWN A HOME IN DUBAI?
There is no minimum age for buying a property in Dubai. If you require a house loan to buy a property, you must be at least 21 years old and have a steady income.
FAQS ABOUT FIRST-TIME HOME BUYING PROCESS IN DUBAI
WHAT ARE SOME THINGS TO CONSIDER WHEN BUYING A PROPERTY IN DUBAI?
Foreigners may easily acquire property in Dubai. However, understanding all of the steps before getting your first home in Dubai is critical. Here are the major variables to consider:
- The property’s 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 PURCHASE A PROPERTY IN DUBAI?
The first down payment for a home in Dubai is determined by your residence status. If you are a UAE native, the down payment for buying a home in Dubai is 20%. Expatriates must make a 25% down payment on a home. For example, if a property costs AED 1 million, an expat must pay a down payment of AED 250,000. On the other hand, a UAE national must spend AED 200,000 for the identical property.
WHAT IS THE MINIMUM SALARY FOR BUYING A HOUSE IN DUBAI?
To acquire a ready property, you’ll need at least AED 20,000 per month in salary. If you are seeking a loan, your monthly income should be between AED 15,000 and AED 25,000 or higher.
DO FIRST-TIME HOME BUYERS IN DUBAI NEED AN AGENT?
Yes, if you are buying a house for the first time in Dubai, you should hire an experienced real estate agent to oversee the transaction. Whether you are a local or an expatriate, there are a few standards and requirements to follow while compiling documentation for your sales deed and other papers. A real estate agent has the tools and abilities to handle the sales process. Before you hire an agent, do your research.
WHAT ARE THE PURCHASE COSTS AND FEES FOR BUYING PROPERTY IN Dubai?
Here is a breakdown of the primary costs of buying property in Dubai; however, there are other charges to be aware of, including hidden expenditures.
- 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 DO I NEED TO BUY A PROPERTY IN DUBAI?
The list of papers necessary to buy a home in Dubai may differ depending on the nature of the transaction. However, these are some of the most typical papers that you may need, according to the Dubai Land Department’s official website:
- UAE ID of both seller and purchaser (for verification purposes only; no copies are 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?
The developer has given a No Objection Certificate (NOC). It verifies that the current owner has paid all fees and levies. Request a NOC from your developer. Submit this certificate to the appropriate government department for approval. As a buyer, this demonstrates that the prior owner has cleared all outstanding balances.
WHAT ARE THE LEGAL STEPS FOR BUYING PROPERTY IN DUBAI?
According to the property laws, the legal processes for buying a property in Dubai are:
- Formulating a contract between buyer and seller.
- Signing a 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 property buyer, you must understand how to obtain a mortgage in Dubai. Here’s how to qualify for a mortgage to buy a home.
- You must be a UAE national or a resident
- Your age should be between 21 and 65 years old
- Your monthly income should be at least AED 15k (for a salaried individual) and AED 25k (for the self-employed)
- It’s also important to meet the minimum salary requirement for a home loan in Dubai (the amount may vary depending on the bank).
CAN I OBTAIN A MORTGAGE IN DUBAI WITHOUT A JOB?
Unfortunately, you cannot apply for a mortgage in Dubai if you are unemployed, have no source of income, or own a business.
WHAT DOCUMENTS ARE REQUIRED TO GET A HOME LOAN IN DUBAI?
While there may be variations across banks, the paperwork needed for a mortgage application in Dubai typically includes:
- A copy of your passport and visa.
- A photocopy of your Emirates ID.
- A salary certificate is 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 MORTGAGES IN DUBAI?
Dubai offers a variety of mortgages, the most common of which are variable-rate and fixed-rate mortgages. Choose a mortgage that meets your needs and lifestyle.
This finishes our list of frequently asked questions for first-time home buyers in Dubai. We’ve prepared a detailed list to assist you in buying your ideal house in one of the world’s top places to live in.
