Difference between Freehold and Leasehold: People unfamiliar with UAE, particularly Dubai's real estate market, are frequently puzzled by the difference between freehold and leasehold properties. Understanding the fundamental differences between these area distributions is necessary for making an informed selection when purchasing a house in Dubai.

Freehold Areas in Dubai              

There was a time when a foreign person could not acquire property in Dubai; however, things began to change in the year 2000, and the Dubai government adopted new rules to make it easier for expats to buy property in Dubai. Certain places have been designated as freehold land, which means that anyone from anywhere in the globe can purchase property in such areas.

Leasehold Areas in Dubai

Leasehold zones, as the name implies, are regions in Dubai where you can rent a piece of land or property rather than buy it. A leasehold property is defined as a property that is leased for a term of more than 10 years but less than 99 years.

Define the Purpose of Buying a Property: Dubai is one of the most sort after locations to Live as well as Invest due to its above average return on investment. So if your purpose is to:

Buy Property for Living in it:

Then you should think about the schools, hospitals, supermarkets, restaurants, and other amenities that are in or close proximity to your home. Because you will be raising your children in the same home, it must be a personal experience for you. But if your purpose is to:

Buy Property for Investment Purposes:

Then you should keep an eye on many advantages such as no tax, simple and transparent procedures, high rental yield, large investment capitalization, and so on. The majority of people in Dubai desire to buy houses that will provide them with a significant return on investment.

AREA OF BUYING PROPERTY:

Every property investor thinks of an ideal property and its neighborhood in which they want to invest. Draw that image on paper, write bullet points, and then figure out which place in Dubai most closely resembles the area you're thinking of.

Property Research:

Before you make your final decision, there are a few things you should know about the building/development. You can request the following information from your real estate consultant.

Details of your developer:

Your hard-earned money is being invested in a property in Dubai, and in order to ensure that you are investing it wisely, you must ensure that the building is being built by a reputable developer. You can also ask your agent to set up a meeting between you and the developer so that you can ask any queries you have.

Completion Year:

The age of the structure is the next thing you should know. Let's pretend you want to invest in Emaar's Al Majara Complex in Dubai Marina. The development was completed in 2006, making it a ten-year-old development. You can now tell how good the construction quality is and how well it is maintained by looking at the present state of the building.

Service Fee:

Although there is no property tax in Dubai, you must pay annual service costs as an owner. The service charges will have a direct impact on the amount of money you can make from your property. Compare the service prices of neighbouring buildings to the amenities provided by those buildings to ensure that you are not overpaying for service on an annual basis.

Latest Market Trends:

Real Estate is very subjective to the market trends which is why it is important to base your buying decisions based on stats and figures rather than a guess. Some of the key trends and data which you can gather and analyze is Quarterly Selling Price Comparison, Historical Rental Charts, or Current asking price trends.

FEES:

Understand the breakdown of the fees and what fees you would be paying:

1. a) Commission/Agent Fee

In Dubai's real estate market, the normal practise for agent compensation is 2% of the purchase price.However, it is largely dependent on your and your real estate consultant's common understanding.

1. b) Transfer Fee:

Prior to 2014, the Dubai Land Department's transfer/registration cost for issuing title deeds was merely 2% of the property value. 

According to a new regulation passed in 2014, anyone purchasing a home in Dubai must pay the Dubai Land Department 4% of the transaction price. 

This payment must be made by way of a Manager's check.

1. c) Registration Trustee Fee

The registration trustee office is where property is transferred from one owner to another (you). 

In Dubai, there are around 20 trustee offices. 

The trustee charge is Dh 2,000 if the purchase price is less than Dh 500,000; however, if the property value exceeds Dh 500,000, the trustee cost is Dh 4,000.

If you’re planning to buy properties, you would need more than a few blog post assistances. Hence, we would love to help you choose right property after understanding and checking the features of properties. Contact Us by filling up the contact form and our expert assistants will get back to you as soon as possible!

It is critical to understand the cost of an investment before making a purchase. If you wish to buy property in Dubai, the same rules apply. We've put together an in-depth information on the cost of buying property in Dubai to assist anyone asking how much it costs to buy a house in Dubai.

PROPERTY FEES

FOR BUYING PROPERTY IN DUBAI UP FRONT

The real estate market in Dubai is governed by some of the most stringent rules in the world, protecting both buyers and sellers. This is why, in addition to the cost of the property, the buyer must pay various upfront fees when purchasing a property in Dubai. These upfront fees for purchasing properties in Dubai vary depending on the type of real estate (ready or off-plan) and the seller (developer or seller). If you intend to purchase your property with a home loan, you should also consider the minimum salary for a mortgage in Dubai.

FEES FOR BUYING READY PROPERTY IN DUBAI UP FRONT

Purchasing a home in Dubai directly from the developer is usually the most cost-effective option. The following are the fees that must be paid to the Dubai Land Department (DLD).

• Fees charged by the Dubai Land Department are 4% of the property's worth.
• The cost of issuing a title deed is AED 520.
• AED 4,200 in administrative costs must be paid to DLD

Those who finance their home with a mortgage or home loan must pay DLD a Mortgage Registration Fee of 0.25 percent of the entire mortgage value plus AED 290 in administrative expenses.

In addition, the cost of purchasing a home in Dubai can rise if you engage a broker from one of Dubai's real estate firms to locate your property. In addition to all of the costs indicated above, brokers might charge a 2% Agency Fee. These agency costs, on the other hand, are adjustable and vary depending on the area and type of property.

FEES FOR BUYING OFF-PLAN PROPERTY IN DUBAI UP FRONT

When purchasing off-plan property in Dubai, there are numerous factors to consider, just as there are when purchasing ready-to-move-in apartments. Buyers who want to buy an off-plan property in Dubai might do so directly from the developer or from a third party. In both circumstances, the 4 percent DLD fees in Dubai on the property's value will apply.

In addition to the DLD charge, the buyer must pay AED 5,250 for the Oqood Certificate, which assures the off-plan property is registered in the buyer's name and is provided by RERA. This stage must be completed once the buyer has paid 25% of the total property price.

DUBAI SERVICE CHARGES

In addition to the initial costs, property owners should factor in service charges when calculating the cost of house ownership in Dubai. These are expenses that homeowners must pay on a regular basis for the care and repair of their homes or communities.

In Dubai, service costs are calculated per square foot when purchasing apartments or villas. As a result, buyers who purchase a larger house are likely to pay more to own a home in Dubai.

DUBAI ELECTRICITY AND WATER AUTHORITY (DEWA) FEES

DEWA is the governing agency in charge of all Dubai residents' energy and water connections. The cost of setting up DEWA varies based on where you live and the type of property you own, ranging from AED 2,300 for an apartment to AED 4,000 for a villa, depending on the number of metres installed.

As you can see, there are multiple aspects that can affect the cost of buying a house in Dubai. Depending on individual circumstance, these fees can be higher or lower. Nevertheless, this article should give you a rough estimate of all the fees for buying real estate in Dubai

Property prices for sale and rent in Dubai’s most popular neighbourhoods remained fairly stable in H1 2020, according to new statistics from Dubizzle and Bayut.

According to the statistics, prices only fell 4 percent overall when compared to H1 2019.

The statistics also show that prospective buyers on both platforms remain interested in established, family-friendly areas including Dubai Marina, Downtown Dubai, Arabian Ranches and the Palm Jumeirah.

Tenants, on the other hand, have continued to direct the bulk of their attention to Jumeirah Village Circle, Dubai Marina, Mirdif and Jumeirah.

Dubai Land Department data shows that 15,897 sales transactions worth AED 32.5 billion were recorded between January and June.

Sale Properties

The statistics show that for buyers and investors seeking ready villas, Arabian Ranches claied the top spot, followed by Palm Jumeirah and The Villa. In Arabian Ranches, price-per-square foot saw a minor increase of 1.6 percent, while they remained stable on the Palm.

Newer developments such as Dubai Hills Estate, Dubailand, Damac Hills and Akoya Oxygen also appealed to buyers interested in villas in H1 2020.

For ready apartments, Dubai Marina continued to dominate the interest of buyers and renters in H1, with the average price-per-square foot falling only 2.2 percent from AED 1,271 to AED 1,243.

Other popular areas, including Downtown Dubai, Jumeirah Beach Residence and the Palm saw prices-per-square foot remained largely stable, while JVC, JLT, Business Bay and International City all saw declines of less than 6.5 percent.

Properties for Rent

For rental villas, Mirdif remained the most popular area, with an average rental cost for 3-bedroom villas declining 4 percent from AED 99,000 to AED 95,000 in H1. Other, more established communities – such as Jumeirah, The Springs and Arabian Ranches – have seen prices remain largely unchanged.

For rental apartments, on the other, Jumeirah Village Circle continued to garner the most attention, with annua asking rents experiencing mild declines in H1 2020, averaging approximately AED 34,000.

Dubai Marina has ranked second for rental apartments in Dubai, experiencing minor declines between 2 percent to percent for average costs in H1 2020.

Ali Khan added that Bayut has seen a 42 percent increase in traffic for villas in March, followed by another 25 percent in April amid the Covid-19 lockdown restrictions.

“It’s easy to understand the appeal of such private homes in light of the heightened need for living arrangements with safe accessible outdoor spaces, irrespective of any lockdown. Overall traffic has also almost doubled since March 2020 with more and more people re-evaluating their housing choices,” he added.