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Frequently Asked Questions
What makes investing in off-plan properties attractive?Developer Incentives: One of the key advantages is the array of incentives offered by developers. These can include affordable entry prices coupled with substantial discounts, promotions, and waivers for Dubai Land Department's 4% registration fees. These incentives can significantly reduce the overall cost of acquiring the property. Capital Appreciation: Investing in off-plan properties allows buyers to potentially benefit from capital appreciation as the construction progresses, particularly when purchasing during the project's initial stages. The property's value often increases as the development advances, potentially resulting in profitable returns upon completion. Flexible Payment Options: Off-plan purchases typically come with flexible payment plans tailored to the construction timeline. Buyers are usually required to make a down payment, which typically ranges from 10% to 20% of the total property price. This down payment is followed by convenient installment payments that coincide with construction milestones, ensuring a manageable financial commitment. Post-Handover Payment Plans: Some developers also offer post-handover payment plans, allowing buyers to spread their payments over an extended period, typically 3 to 6 years, after the property is completed. What makes these plans even more attractive is the possibility of interest-free installment options, providing further flexibility in managing the financial aspect of property ownership.
Can you obtain residency by purchasing property?Yes, acquiring property in Dubai can lead to obtaining residency in the United Arab Emirates (UAE). However, the process varies depending on the type of property. Investor Visa: If you purchase property in Dubai worth at least 2 million AED, you can apply for a Golden Visa. This visa is typically valid for up to 10 years and can be renewed as long as you maintain ownership. It allows you to reside in the UAE and enjoy certain benefits as an investor visa holder. Furthermore, a Golden Visa might have specific requirements regarding property value, type of ownership, and potential other investments or business activities that need to be fulfilled to be considered for residency in the UAE.
What is the expected rental yield?The expected rental yield in Dubai varies depending on the location, type, and condition of the property. Generally, rental yields are around 6-10%, and they can be even higher in certain development areas. It is advisable to conduct a detailed market analysis to determine the potential rental yield for a specific property.
Why should one invest in Dubai Real Estate?Dubai offers a variety of compelling reasons for investing in real estate: Strong Economy: Dubai is an economic hub with diversified industries such as tourism, finance, trade, and technology. The robust economy contributes to the stability of the real estate market. High Growth Rates: The city continues to experience impressive population and economic growth, creating a high demand for real estate. Tax Benefits: Dubai does not impose income tax or capital gains tax on real estate investors, which is appealing to international buyers. Quality of Life: Dubai provides a high quality of life with modern infrastructure, excellent educational institutions, healthcare services, and a wide range of leisure activities. Attractive Returns: The real estate market in Dubai has historically delivered attractive returns of around 6-10% for investors. Free Trade Zones: Dubai's free trade zones offer foreign investors numerous benefits, including 100% foreign ownership and tax advantages. Infrastructure: The modern infrastructure, including top-notch roads, airports, and port facilities, facilitates business and daily life. Cosmopolitan Environment: Dubai is a multicultural city with a cosmopolitan atmosphere that attracts investors from around the world. Security and Stability: Dubai is renowned for its security and political stability, which are crucial factors for investors.
How do you buy a property? Do you need to be present in person?You do not need to be present in person to buy off-plan properties in Dubai. The purchase of off-plan properties can be done remotely. Many buyers choose to invest in Dubai's off-plan properties without physically being there. These are the main steps of buying off-plan property in Dubai, whether you are physically present or making the purchase remotely: Start by identifying the off-plan property that aligns with your preferences and budget. Our experts at Tribeca Real Estate work with renowned developers in Dubai and assist you in finding suitable projects. If you are in Dubai, we take you to show rooms and other projects built by the developer. For remote buyers, we conduct projects viewings on your behalf, providing you all projects details including floor plans, payment plans, brochures, photos and videos for evaluation. Once you've chosen a property, you can reserve it by paying a reservation fee to the developer. Simultaneously, you will sign a Memorandum of Understanding (MoU) that outlines the key terms and conditions of the transaction, formalizing your intention to purchase the property. Before proceeding further, it's crucial to perform thorough due diligence on the chosen property. Ensure that all necessary permits, documents, and approvals are in place, and there are no legal issues or disputes associated with the project. Our advisors at Tribeca Real Estate will help you with this process. After that, a formal purchase agreement will be prepared. The purchase agreement will detail the terms of the transaction, including the payment schedule and other conditions. Payments for off-plan properties are typically made in installments according to the terms specified in the purchase agreement. The initial deposit is paid at the time of signing the contract, and subsequent payments are made as the construction progresses, with milestones triggering each installment. Upon completing all payments and fulfilling the conditions outlined in the purchase agreement, the property will be registered in the Dubai Land Department's registry, transferring ownership into your name. This registration process is essential to secure your legal rights as the property owner.
How much ancillary costs are there when purchasing a property?When purchasing a property in Dubai, buyers should anticipate additional costs that can amount tO around 7-8% of the purchase price. These ancillary costs typically include: Land Department Fees: Approximately 4% of the purchase price Real Estate Agent Commission: Typically 2-3% of the purchase price Transaction Fees: Approximately 0.25% of the purchase price Valuation Costs: Depending on the appraiser, usually around 0.1% of the purchase price It's important to consider these costs when budgeting for property acquisition.
Is it necessary to be a resident in order to buy a property?No, it is not necessary to be a resident in Dubai to purchase a property. Foreigners can buy property in Dubai without holding residency. However, there are certain regulations that may restrict the type of ownership and location of the property for non-residents. It is advisable to consult with a local real estate expert about the applicable regulations before making a purchase.
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