F.A.Q. - Frequently Asked Questions
Who can buy Real Estate in Dubai & the UAE?
Any private individual aged 21 or over who holds a valid passport can purchase real estate in Dubai, regardless of where they come from.
In addition, companies based in the UAE that hold the appropriate license can also purchase real estate in Dubai.
Once I have purchased a property in Dubai, does it really belong to me?
Absolutely!
Of course, there is also a leasehold model in Dubai, where you do not own the property outright. However, this model is of no interest to investors and is therefore NOT offered by DBI Real Estate. Properties that you can purchase through DBI Real Estate are bought exclusively through the freehold model and secured by a corresponding land registry entry.
What are the requirements for purchasing real estate in Dubai?
To purchase real estate in Dubai, you need a valid passport, valid contact details, and the ability to make an immediate down payment via credit card/Mastercard or bank transfer.
The purchase, handover, and rental can all be done entirely online via DBI Real Estate, without you having to travel to Dubai.
Please note that purchasing property in Dubai generally requires equity capital.
Is it safe to buy real estate in Dubai?
Buying property in Dubai is just as safe as buying property e.g. in Europe. Contracts are highly regulated and are monitored very closely and strictly by the Dubai Land Department (DLD) to ensure that you, as a buyer and investor, are protected.
The main risk when buying property in Dubai is working with the wrong partner.
How is the market in Dubai developing?
The outlook for the real estate market in Dubai remains very good. This is based primarily on the Dubai Urban Master Plan, which is Dubai’s seventh master plan since 1960 and translates Dubai’s vision into a concrete plan. This plan envisages further enormous growth for the city to over 7.5 million inhabitants by 2040, which will see Dubai reach and even surpass the size and importance of New York.
Which locations can you recommend?
The concepts, buildings, infrastructure, and prices of Dubai’s various districts vary greatly. From simple areas with older apartment buildings to gated communities with villas and artificially created water lagoons, to magnificent buildings on Palm Jumeirah, breathtaking skyscraper projects, each district follows its own concept.
For buyers looking for long-term rentals, locations such as JVC (Jumeirah Village Circle), Arjan, or Al Furjan, which are mainly characterized by mid-rise apartment buildings, are recommended.
For buyers who are more focused on value appreciation, however, locations such as the new palm (Palm Jebel Ali), Dubai Islands, or Dubai Creek are recommended.
There are many factors to consider when choosing a location, which is why recommending a specific district or project only makes sense after a consultation.
How is the quality of buildings in Dubai?
The construction quality of buildings in Dubai varies greatly.
Some developers offer outstanding quality and create first-class properties, while others merely meet average standards. It is therefore crucial to choose a competent partner with extensive market experience.
An experienced consultant can help you find the right developer and ensure that your real estate investment meets the highest quality standards.
Is buying & renting out tax free?
Yes and no!
In Dubai, there are no real estate transfer taxes, annual property taxes, holding periods, or similar charges. Income tax is also not levied in Dubai. However, this only applies to income from employment contracts (wages/salaries); other types of income may be subject to tax, e.g., if you set up a company in Dubai for the purpose of purchasing and renting property.
Regardless of the taxes in Dubai, however, you must always observe the regulations in the country where you are a tax resident. These vary greatly and, depending on your personal situation, may result in your income being taxed.
Statements such as “Buy your dream property in Dubai tax-free,” as often found in advertisements, should therefore be treated with particular caution.
Is real estate in Dubai purchased or leased for 99 years?
Both models are represented in Dubai and the UAE.
However, DBI Real Estate only offers properties that are purchased under the so-called freehold model. These properties do not revert to the state, but belong 100% to you.
Is it possible to finance real estate in Dubai?
Yes, real estate financing is also possible in Dubai. As a foreigner, you can finance up to 60% of the purchase price.
However, this is only possible for completed properties and is subject to certain conditions. For off-plan properties, on the other hand, there are payment plans with flexible payment options. Here, for example, only the payments due from the handover onwards can be financed through a Dubai bank.
Regardless of this, many investors also rely on refinancing existing properties in Europe.
Our expert customer advisors will be happy to advise you personally on the financing options and help you find the best solution for your property purchase in Dubai.
What are the advantages of investing in real estate in Dubai?
Real estate in Dubai offers numerous advantages. Here are just a few of them:
- High rental yields
- High potential for value appreciation
- High security when buying and renting
- High currency stability
- High political stability
- Opportunity for tax benefits
- Investor-friendly, future-oriented location
What are the main risks buying property in Dubai?
The main risk when buying property in Dubai clearly lies in choosing the wrong partner.
There are numerous providers on the real estate market in Dubai, well over 150 developers and more than 80,000 brokers.
Many of them do not really know the market or are only interested in a quick sale – sometimes with very questionable promises – and not in a long-term relationship, or, despite statements to the contrary, do not offer additional services such as appraisers for the handover or a rental service.
This means there is a risk that your investment will not pay off as promised or that there will be defects in terms of construction, service, or location quality.
Therefore, you should only rely on partners with proven real estate experience in Dubai.
Will real estate prices in Dubai continue to rise?
Of course, no one can guarantee further growth, but many important factors that influence real estate price trends in a location are extremely promising in Dubai:
- Enormous population growth
- Continuous economic development
- Steadily rising demand for real estate
- Constant expansion of infrastructure (education, transportation, etc.)
- Growth in the tourism sector
- Many more
The market in Dubai thus offers better conditions than most other real estate markets.
How secure is my capital when purchasing off-plan?
In short: VERY secure. Your capital is protected by many different mechanisms.
These include a secure, government-supervised escrow account system for construction projects.
This ensures that developers must always work with their own capital first and can only withdraw the capital for the next construction phase in batches AFTER completion of a construction stage. This ensures that there is always more capital in the account than the developer needs for the actual completion. The last batch of the escrow account is sometimes only paid out to the developer more than a year after completion of the project and completion of all follow-up work.
This system is significantly more secure than comparable systems e.g. in Europe.
What are the biggest differences between Dubai and other markets?
Der Markt in Dubai unterscheidet sich sehr deutlich von vielen anderen Märkten
Neben den anderen rechtlichen Regelungen liegen die Unterschiede häufig in der Finanzierung und den Zahlungsmöglichkeiten.
Der Hauptunterschied liegt jedoch in der enormen Dynamik des Marktes: Der Kaufprozess – vor Allem für Off-Plan Investitionen – ist digital und deutlich schneller als z.B. in Europa. In Verbindung mit der hohen Nachfrage für Immobilien sorgt dies für eine unglaubliche Verkaufsgeschwindigkeit, die dafür sorgt, dass gesamte Gebäude mit mehreren hundert Apartments binnen weniger Stunden ausverkauft sein können.
Die Berater von DBI Real Estate führen Sie kompetent an diesen Markt heran und sorgen dafür, dass Sie sich auf diesem Markt perfekt zurecht finden.
Which is better, off-plan or ready-to-move-in?
Both have advantages and disadvantages.
In general, however, there is a clear tendency for investors to favor off-plan projects due to the significantly lower entry prices. End-users, on the other hand, tend to prefer completed buildings.
However, this is always a case-by-case decision that depends on many different factors. We recommend that you do not allow yourself to be influenced by various sources on the internet, as these often have their own interests, but instead seek detailed advice.
Who cares about my property in Dubai after I bought it?
DBI Real Estate is happy to assist you throughout the entire value chain of your investment with expert contacts for the respective subject area.
In addition to traditional long-term rentals, we are also happy to take care of short-term rentals and furnishing your dream property, as well as handling the handover, your visa, and other matters that arise on site.
Please feel free to contact us for more information.
What additional costs are incurred when purchasing real estate in Dubai?
When purchasing a property provided by a developer, there are only 4% additional purchase costs for notary and land registry fees.
Unlike other providers, DBI Real Estate does NOT charge any brokerage commissions or consulting fees. The sales offers provided by DBI Real Estate list all costs and payment dates in full. The properties are sold at the developer’s original price, often with even better terms than those offered by the developer itself.
When purchasing on the secondary market, e.g., from a private individual, an additional 2.1% brokerage commission is charged on top of the 4% for land registry and notary fees, as well as 1-1.5% for processing by a trustee, if applicable.
How high are the operating costs of a property in Dubai?
Operating costs are also generally low, despite the often higher level of service.
Costs that are not consumption-based are usually allocated to the owners according to the size of the property and stated in AED/sqf/year (service fee/service charge).
In addition, there are consumption-based costs (e.g., electricity, water, air conditioning), which are also generally significantly lower than in Europe and, in the case of long-term rentals, for example, are borne directly by the tenant.
How do I find the right real estate agent in Dubai?
Finding the right real estate agent in Dubai is crucial to optimizing your investment and securing your capital.
As one of the most experienced real estate companies in this market, we have been supporting our clients through every step of their investment since 2019. Our team has extensive expertise, a large network, and many years of experience.
We support you in developing the right strategy, searching for the best real estate offers, advising you on all aspects of your investment, and guiding you through the entire purchase process.
Feel free to contact us and see the quality of our work for yourself.
Why should I work with DBI Real Estate?
DBI Real Estate has been active in the market since 2019 and therefore offers a lot of experience in this market. Over the years, it has established itself as one of the leading providers for high quality service.
We work closely with developers and other partners in Dubai to recommend the right properties for you. Our team of experts knows the market very well and supports you in all matters relating to your property.
Your relationship with DBI Real Estate does not end with the purchase of a property, but rather begins with it.
As a customer, you benefit from a wide range of additional services throughout the entire value chain. These include, for example, financing, professional appraisals, rental services, interior design and comprehensive consulting, as well as visa services.
With DBI Real Estate, you have a reliable partner at your side who will support you in every phase of the investment process over the long term.
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