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Things you need to know about purchasing property in Dubai

Dubai: Things you need to know about purchasing property

written by Troy Longmuir

Dubai is a busy metropolis with an ingrained property culture, stemming from the unmissable construction present over the past couple of decades.  New buildings seem to be popping up daily, all bigger and better than the last.  Many visitors and residents catch the bug and find Dubai an appealing place to buy property for many reasons, including the location of the city and the possibility of capital growth.  

The Dubai property market certainly has the range of property to suit most needs and budgets, from the first home owner right up to the multi-million dollar properties you only see in magazines.  For the serious buyer, it goes without saying the first port of call is to understand your purchasing capacity and the government requirements that need to be met before investing.  

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1. Dubai Government requirements for purchasing in the UAE

In 2002 a Freehold Decree was issued enabling foreigners to buy, sell and lease property at their discretion.  This is confirmed by the Government of Dubai website, stating expatriates can purchase freehold property either off plan or on the secondary market.

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2. Dubai Government guidelines on lending rate

Dubai has a minimum deposit requirement  as well as a limit for the total amount of the loan relative to your income.  These guidelines are outlined below:

 Dubai, United Arab Emirates
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3. Bank requirements

In the post Global Financial Crisis world, world banks as a group are more conservative in their approval of loans, and the banks in Dubai are no different.  You should expect the following as a minimum requirement for a loan:

- Passport and copies
- Proof of residence
- Proof of address
- Salary certificates or evidence of regular income
- Bank account statements for three to six months

Generally mortgages are between 15 and 25 years in duration with payments monthly.  A rule of thumb to have your mortgage approved is the mortgage amount plus expenses should not exceed 35% of your net monthly personal income.

If you would like to talk to a fantastic mortgage broker about your options, please let me know.
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4. Paperwork and legal process

There are two ways of completing a transaction in Dubai; in person or using a Power of Attorney (POA).  A POA is a service provider that handles the purchase process for their clients.  POA’s are a popular choice for foreign investors, as there isn’t the need to be physically in the country to purchase the property.  The price of the service quickly stacks up as a wise choice once flights, accommodation and other expenses are factored in.  For a referral to our favorite POA’s, please let me know.

5. Finding your property

For the uninitiated, Dubai is a complex city with no defined “middle” and a wide range of communities and properties within each community.  It really can be confusing and time consuming to research.  This is where a quality property consultant is worth their weight in gold.  With a mere phone call, an appointment can be arranged to understand all of your property requirements.  From that point an agent should go and find you the best suited properties and negotiate the best price, making the process easy from start to finish.

I am confident in my ability to provide this service to you.  Should you be in the market to purchase, sell, or just require some information, please let me know.  Also please feel free to share this post with anyone that may be interested.

Troy Longmuir – Property Consultant

Nakheel Sales Center 
Phone: 04 375 5120
Mobile: +971 50 221 4857


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Engel & Völkers
Licence Partner Dubai
  • Nakheel Sales Center, Building 7, Al Sufouh 1
    PO Box 17722 Dubai, United Arab Emirates
    ORN: 16081

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