Vivant Group

Common Questions about Dubai

1. Why should we invest in real estate in the UAE and Dubai?

Dubai and the UAEoffer tax-free income, a strategic global location, a booming tourism sector, political stability, and world-class infrastructure. The market attracts international investors due to high rental yields (5-8%), long-term capital appreciation, and residency opportunities. Events like Expo 2020 and Dubai’s vision to become a global business hub further enhance growth potential.

2. How many types of property ownership exist in the UAE?

There are three main types: Freehold: Full ownership, available to foreigners in designated areas (e.g., Dubai Marina, Palm Jumeirah). Leasehold: Leasing rights for up to 99 years. Usufruct: Rights to use the property for a specific period (up to 50 years), common in other emirates like Sharjah.

3. How do UAE property prices compare to other global cities?

Dubai’s prices are generally lower than cities like London, New York, or Hong Kong. For example, prime areas in Dubai average 600–600–1,200 per sq. ft., while Manhattan averages $1,500+ per sq. ft. However, Dubai offers higher rental yields and growth potential due to its evolving market.

4. What residency options exist through property investment?

3-year residency: For properties valued at AED 750K+. 5-year Golden Visa: For investments over AED 2M. Both require maintaining ownership and passing routine checks. No mandatory physical stay, but visas are renewable.

5. How long does the property buying process take in Dubai?

Typically 2–4 weeks. Steps include due diligence, signing a Memorandum of Understanding (MoU), transferring funds, and registering the title deed. Delays may occur if using bank financing or dealing with off-plan properties.

6. Can foreigners get a mortgage in the UAE? What are the terms?

Yes. Non-residents need a 25–50% down payment, proof of income (local or overseas), and a clean credit history. Interest rates range from 3.5% to 6%, depending on the bank and loan tenure (up to 25 years).

7. What are the additional costs of buying property in Dubai?

4% Dubai Land Department fee (on purchase price). 2% agent commission. AED 4,000–AED 10,000 for administrative services. Annual service charges (AED 5–30 per sq. ft.). No property tax, but 5% VAT applies to services (e.g., brokerage).

8. What happens if a project is delayed or the developer goes bankrupt?

Dubai’s Real Estate Regulatory Agency (RERA) mandates escrow accounts for off-plan projects, safeguarding buyer funds. If a project stalls, buyers may receive refunds, alternative units, or compensation viaDubai's Property courts.

9. What is the rental yield in Dubai?

Downtown Dubai or Dubai Marina Average gross yields are 5–8%. Prime areas like

10. How much does property value appreciate annually in Dubai?

Historically, 5–10% annually, though market fluctuations occur. Long-term growth is driven by infrastructure projects, tourism, and economic diversification.

11. What if I default on mortgage payments?

Banks may impose penalties, report defaults to credit bureaus, or initiate foreclosure. Communicate early to negotiate payment plans or loan restructuring. Legal proceedings can take 6–12 months.

12. How secure is real estate investment in the UAE?

High security due to strict regulations, transparent processes, and political stability. Dubai’s real estate market is globally ranked for transparency (Jones Lang LaSalle 2022). Risks exist, but the government’s investor-friendly policies minimize them.

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