Most asked questions when buying a property in Dubai 2024

You have decided to invest in apartments in Dubai but you have a lot of questions. Regardless of the goal, every first-time property buyer encounters a lot of questions and sometimes doesn't find answers.

In this article, we have compiled a list of the most common questions and answers and we are ready to provide answers to your other questions. Please leave us a message and we will contact you.

1. I’m a non-resident in Dubai. Is real estate for sale available for non-residents?

There are certain areas in Dubai where non-residents are allowed to buy real estate. Foreigners are allowed to buy residential and commercial property in freehold zones. When purchased, real estate can be disposed of at will: rent, resell, repaired, transferred by inheritance, etc.

2. How do I know if a property project is safe to invest in?

Any buyer, whether investor or end-user, needs to do their due diligence on a purchase. If the property is in the primary market, the choice of the developer is of utmost importance. You must check what projects they have completed in the past, their delivery timelines, whether there were any construction delays or other issues, and if they have an escrow account.

Most end-users and investors are to buy ready property, especially with a post-handover payment plan, from the primary market or any property from the secondary market they can mortgage.

Lastly, to verify if the project is registered and check the construction status, you can do this via the Dubai Land Department DLD website (www.dubailand.gov.ae) or download the Dubai Rest app from Google Play or the App Store on your mobile.

3. What are the main factors to consider when choosing property in Dubai?

The main factors to keep in mind when investing in real estate in Dubai include location, reputation of the developer, type of property, available budget, possibility to cover additional costs, and financial options. It is also crucial to check legal requirements and market conditions, evaluate the resale potential of the chosen property in the future, as well as any rental income it may generate.

4. Dubai Property Tax?

It’s a well-known fact that Dubai is a tax-free haven with no income tax whatsoever. In fact, it’s a big reason why so many expats choose to move to Dubai in the first place.

What is less know however is that being and/or selling Dubai real estate is also free from any tax. This means that if you were to purchase a property for say AED 1m and sold the same property for AED 2m 10 years later there would be no tax payable on the 2m sales price or the 1 million in capital growth. This applies to both owner-occupied and investment properties.

In addition to no capital gains tax, any income generated from a property in Dubai is 100% tax-free. This is greatly attractive for buy to let investors and a scenario investors in most other countries could only dream about.

5. What Currency Can I buy in?

The official currency of Dubai and the UAE is the UAE Dirham. The dirham is pegged against the US dollar with a fixed exchange rate of 1 USD = 3.67 AED. This means that the value of the dirham is always stable against the dollar making it one of the safest currencies to do business with.