Complete FAQ on buying a house or apartment in Dubai - Part 2

Welcome to Part 2 of our FAQ dedicated to buying a luxury house or apartment in Dubai. Stéphane Maman, CEO of Prestige Immobilier Dubai agency, answers all your questions.

How much are the additional fees when buying a property in Dubai?

The additional fees when buying a property in Dubai include various charges levied by the Dubai Land Department (DLD). Typical fees include:

Property transfer tax: This tax typically amounts to 4% of the purchase price and is usually paid by the buyer. It is used for property registration and transfer of ownership deeds.

Execution-related fees: Various fees are incurred by you as the buyer during execution, such as the "Handover Fee". However, the costs are generally manageable.

Real estate agent commission: Buying a property in Dubai typically incurs a real estate agent commission. This commission usually ranges between 2% and 3% of the purchase price.

It is important to note that these fees are just a general estimate and may vary depending on the type of property, location, and negotiation factors. In principle, you can expect purchase fees to represent approximately 6% to 8% of the purchase price.

What are the rental yields in Dubai?

Rental yields in Dubai vary depending on the project and location and can offer attractive returns of 6% to 12%. The actual level of rental yield depends on several factors such as the type of property, its location, market demand, and project quality. Rental yields are generally higher in popular residential neighborhoods and well-established real estate projects.

What should I pay attention to when buying an apartment in Dubai?

Firstly, ensure that the real estate developer is reputable and that the construction is of good quality to ensure that your investment is sound. The geographical location of the apartment is a determining factor for its value and quality of life. Do your research well and make an informed decision to succeed in your apartment purchase in Dubai.

How do I buy an apartment in Dubai?

Buying an apartment in Dubai requires careful planning and expertise. It is advisable to enlist the help of a competent intermediary such as an experienced real estate agent.

A professional real estate agent can help you navigate the purchasing process, clarify legal aspects, and find the best deals. Research current real estate offerings, check financing options, and make sure you have all the necessary documents and permissions. With a trusted intermediary by your side, buying an apartment in Dubai will proceed more smoothly and efficiently.

Do I receive registration in the land registry when buying real estate in Dubai?

Yes, when buying real estate in Dubai, the buyer receives registration in the land registry. The Dubai Land Department (DLD) is responsible for registering property rights and issues an official property certificate. This certificate serves as proof of your legitimate ownership of the real estate and allows you to enjoy all the rights and obligations associated with it. Registration in the land registry provides you with security and protection against unjustified claims on the real estate.

Who takes care of renting out my apartment in Dubai?

As your intermediary, we are happy to take care of renting out your apartment in Dubai. We offer professional support and can recommend reputable rental agencies that can help you find potential tenants. Feel free to contact us for more information and to discuss your rental needs.

As a French, Belgian, or Swiss citizen, what are the financing options for real estate in Dubai?

As a French, Belgian, or Swiss citizen, you generally have two financing options for buying real estate in Dubai. You can either apply for financing from a bank in your home country, in which case real estate in your home country is often required as collateral.

Another option is to apply for financing in Dubai. However, it is important to note that this possibility is limited and depends on various factors such as your residency status and solvency. Prestige Immobilier Dubai and Stéphane Maman will be happy to advise you individually on the financing options available and help you choose the best option for your real estate purchase in Dubai.

What are the advantages of buying an off-plan project in Dubai?

Buying real estate in Dubai as part of an off-plan project offers many advantages. Firstly, it allows you to buy real estate before it is completed, which means potentially lower prices and more attractive payment plans. Secondly, buying off-plan gives you the opportunity to customize and choose your accommodation according to your personal preferences.

Additionally, many off-plan projects offer modern amenities, innovative architecture, and top-notch facilities. Another advantage is the potential for capital appreciation, as prices can increase during the construction phase and after completion. As an experienced real estate agent in Dubai, we will be happy to help you choose and buy an off-plan project to take advantage of these benefits.

What is the rental occupancy rate in Dubai?

The rental occupancy rate in Dubai is generally high. Due to the constant influx of business travelers, expatriates, and tourists, the demand for rental housing is high. Dubai is a major business and tourism hub, with a growing population and a thriving job market.

This results in a stable rental environment with good chances of finding tenants for your property. However, it is important to note that the occupancy rate may vary depending on the location, type of property, and current market trends.

Continuation and end of our FAQ here: FAQ and important questions before buying an apartment or house in Dubai - Part 3


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