In Dubai, real estate mortgages can be obtained by both UAE residents and non-residents.

Non-residents of the UAE may purchase a property by mortgage of up to 50% of the property value.

The average mortgage interest rate for non-residents is from 4 to 5% per annum depending on the bank you choose.

All payments for the offplan property to be purchased has to be made through an escrow account accredited / assigned for the chosen project.

Income from rental and sale of properties in Dubai is exempted from taxes.

Yes, there is. In Dubai, there are projects for which the developer offers interest-free installment plans of up to 6 years or sometimes even more.

You are granted eligibility to apply for a resident visa upon buying a property worth more than USD 240,000. A resident visa will allow you to get an insurance policy, place your children in British schools, open bank accounts and obtain a driver's license, among other privileges.

Without the participation of real estate agents, like the rest of the world, no real estate transactions could transpire in Dubai. It is with real estate agencies that clients want to rent, lease, buy or sell properties. More than anyone else, agents have direct information as to who, what, and for which price its players want to rent, sell or buy.

Considering current profitability of real estate investments in general and actual market conditions, the rate of net rental income, that is, income minus maintenance costs, in Dubai averages from 5% to 12% per annum today. The range is influenced by differences in the type and category of real estate, its location and the maintenance cost.

As for commercial real estate, such investments are currently less attractive in terms of rental income and in comparison to the purchase of residential properties. Leasing retail space (including service points, cafes, restaurants and etc.) is capable of generating a potential income of up to 15%, however, the figures are still dependent on the parameters of the property itself, as well as various external factors.

Generally, the procedure for buying a property in Dubai is as follows:

(1) The buyer chooses the property.

(2) The seller and the buyer sign a contract of sale which reflects all the parameters of the deal, particularly, the value of the acquired property; additional payments related to the transaction, such as: agent commissions, payments to the developer, registration fee, reimbursement to the seller of service costs paid in advance and etc.; the period during which the purchase and sale transaction must be completed; the terms and procedure for making settlements; and the responsibility of the parties in case of non-fulfillment of the conditions under the contract.

***When signing a contract of sale with the seller, the buyer pays a deposit, usually at 10% of the value of the property to be acquired.

(3) The seller issues a Non-objection certificate (NOC) to signify permission from the developer to sell the property, necessary for registration of the transaction in the Dubai Land Department.

(4) The seller and the buyer registers the property and the name of the new owner in the Dubai Land Department. Settlements on the transaction usually occur at the time of registration.

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