frequently asked questions

— KNOWLEDGE CENTRE

— DUBAI REAL ESTATE, DEMYSTIFIED

Answers to common questions

Everything you need to know about buying, selling, and investing in Dubai
property.

What is a property transfer fee in Dubai?

A transfer fee is due when you transfer your property to another person. It is an administrative fee charged by the first developer.

What is a DLD waiver?

Waiving Dubai Land Department (DLD) registration fees is a common offer from developers. The DLD fee is 4% of the property purchase price, plus an administrative fee of AED 580. Waiving the DLD fee means the buyer does not have to pay this fee — the developer pays it. Sometimes developers offer a discount of 50% to 100% on the DLD fees, meaning the buyer pays the remainder if necessary.

What is off-plan?

Off-plan refers to a property purchased before construction is complete — a plot of land or building under development. Buyers purchase based on architectural plans and developer reputation, often benefiting from lower entry prices and flexible payment plans.

Who is the owner of Emaar Properties?

Mohamed Ali Rashed Alabbar is the founder and chairman of Emaar Properties PJSC, one of the leading developers in the United Arab Emirates.

What is RERA Dubai?

The Real Estate Regulatory Agency (RERA) is the Dubai Land Department regulatory body that governs the real estate sector in Dubai. It regulates the relations between all contracting parties and organizes the exchange of real estate.

Is Dubai an expensive city to live in?

Dubai is often considered a pricier city to reside in compared to many others in the region. The cost of living is primarily influenced by housing, transportation, food, and entertainment. Housing costs can be high, especially in sought-after areas. However, the overall cost can be balanced by the relatively affordable cost of goods and the absence of income tax. It varies significantly based on individual circumstances and lifestyle choices.

Which are the top 10 real estate developers in Dubai?

Dubai hosts a roster of distinguished developers. The top 10 are: 1) Emaar Properties — renowned for high-rise towers and residential communities; 2) Dubai Properties — a subsidiary of Dubai Holding Group; 3) Nakheel — acclaimed for grand-scale projects including man-made islands; 4) Damac Properties — luxury residential and commercial developments; 5) Meraas — mixed-use projects; 6) Azizi Developments — luxury residential undertakings; 7) Sobha Group — luxury residential projects; 8) Deyaar — high-quality residential and commercial endeavors; 9) Ellington Properties — superior residential projects; 10) Danube Properties — reputable residential and commercial ventures

What's the difference between leasehold and freehold properties in Dubai?

Freehold ownership bestows indefinite property ownership with full rights to use, transfer, and sell — often viewed as a more secure investment. Leasehold ownership permits use of a property for a specified duration, typically 50 to 99 years, after which ownership reverts to the government or landowner. Leasehold properties are generally more affordable, providing a lower entry point. Prior to purchase, weigh the advantages of both and research the property’s ownership status.

Is it better to buy a property in Dubai on a mortgage or pay fully with personal savings?

The choice depends on your financial circumstances and investment objectives. Paying in full offers freedom from monthly mortgage payments, interest savings, and enhanced equity — but ties up significant capital. A mortgage allows lower initial costs, equity accumulation over time, and an extended payment schedule — but incurs monthly obligations and interest expenses. Assess your budget, cash flow, and long-term goals, and consider consulting a financial advisor.

Is it better to buy a property in Dubai on a mortgage or pay it fully with personal savings?

The choice between purchasing a property in Dubai with a mortgage or using personal savings hinges on your financial circumstances and investment objectives.

Opting to pay for a property in full with personal savings offers several benefits, including:

Freedom from Monthly Mortgage Payments: Full payment eliminates the need for ongoing monthly mortgage payments, freeing up cash for other expenses or investments.
Interest Savings: By avoiding borrowing, you sidestep interest costs that can accumulate over time.
Enhanced Equity: Complete ownership of the property gives you full control and equity in the asset.

Nevertheless, using personal savings to purchase a property in full has its downsides, such as:

Capital Tied Up: Significant capital is tied up in the property, limiting its use for other investments or expenses.
Limited Access to Funds: Placing all savings into one property can restrict access to funds for other financial needs or investments.

Opting for a mortgage to acquire a property in Dubai offers several advantages, including:

Lower Initial Costs: Borrowing allows for a smaller upfront investment, making more savings available for other expenses or investments.
Equity Accumulation: Monthly mortgage payments contribute to building equity in the property over time.
Extended Payment Schedule: Borrowing spreads the property cost over a longer period, reducing monthly payment amounts.

Nonetheless, obtaining a mortgage to purchase property in Dubai has its drawbacks, such as:

Monthly Mortgage Obligations: Monthly mortgage payments can affect cash flow and budget considerations.
Interest Expenses: Borrowing incurs interest costs that can augment the overall property cost over time.

Ultimately, the decision to pay for a property in full with personal savings or secure a mortgage will hinge on your financial scenario and investment aspirations. It’s essential to assess your budget, cash flow, and long-term financial goals when reaching a verdict. Seeking guidance from a financial advisor can also aid in making an informed choice.

Freehold vs. Leasehold: What's the difference?

Freehold grants full ownership of the land and buildings, allowing you to sell, lease, or use it freely (governed by Law No. 7 of 2006). Leasehold grants rights to use the property for a set term (usually 99 years) but not ownership of the land itself (also under Law No. 7 of 2006). Understanding these distinctions is crucial for making informed decisions.

Are there any restrictions on foreign ownership?

Yes. Only in specific freehold areas can foreigners purchase property. Emirati and GCC citizens have more freedom to buy anywhere in Dubai. These restrictions are outlined in Regulation No. 3 of 2006.

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