Dubai is the gateway to the Middle East. Be it the global or region trade, ports, manufacturing, tourist attractions and hospitality- Dubai stands out among the top players in the area. The Emirate of Dubai houses more than 40 free trade zones dedicated to almost every sector of international trade and commerce. The free zones offer world-class infrastructure facilities along with many tax soaps for foreign companies that set up business in Dubai free zones.
Dubai is also one of the global financial capitals in the world. Many financial companies serving the Middle East and African region have their regional offices based out of Dubai. Mainland companies provide access to local consumer markets. These opportunities have attracted many regional and international companies to set up shop in Dubai and attracted foreign expatriate talent looking for global opportunities with attractive paychecks.
Dubai is a global metropolis which provides the best infrastructure facilities to lead a posh and quality lifestyle. The society of Dubai is very open and most tolerant. Residents are allowed to practice their culture and religion freely. Dubai has adopted stringent laws which have been effective in keeping the crime rates low. It is one of the very few cities where the police personnel are equipped with supercars to tackle crime and road rages. Dubai regarded as one of the safest places in the world.
Real Estate in Dubai
The real estate market makes a significant contribution to the economy of Dubai. The real estate industry has seen an upward trajectory in its growth post liberalisation of laws lifting restrictions on foreigners to own a property in Dubai. Many foreigners have shown active interest to buy property in Dubai.
Many expatriates reside in Dubai, working for many local and global companies. Dubai provides excellent connectivity between Eastern and Western worlds via in-house airlines which serve passengers globally. Many tourists have started purchasing properties in Dubai and making it the holiday home.
Many studies carried out have shown that owning a property in Dubai makes more economic sense in the long term than renting a property where the rents are dearer to individual home buyers. The property market has seen its ups and downs during the global financial crisis of 2008. The market has bounced back and provided significant returns to the investors.
Taxes and Fees Scenario while Buying a Property in Dubai
Major metropolis of worlds allows non-citizens to purchase and own properties. However, the buyer is required to spend a considerable sum of the additional money in taxes and other legal compliance procedures. Alternatively, Dubai provides many advantages to foreign property buyers.
No Property Tax
The Government does not levy any property taxes on the owners of the property in Dubai. It has been one of the main driving factors for investors to buy and own property in Dubai. The property owners especially tourist or holiday home buyers, can take a backseat and not worry about paying annual property taxes.
The Dubai Land Development charges a registration fee while registering the property from seller to buyer. The fee is currently at AED 2000 for property value below AED500,000 and AED4000 for property value above AED500,000. The registration fee is comparatively lower in Dubai when compared to the other metropolis worldwide.
Dubai Land Development Transfer Fees
The transfer fee levied while the property transfer from one party to another. There is a 4% transfer fee paid to Dubai Land Development during the process of property transfer. The cost in total shared between the buyer and the seller.
Estate Agency Fees
The property buyer needs to pay Estate agency fees which are around 2% of the purchase value. The fee is usually the commission charged by the real estate agent for his services, assisting the buyer in purchasing the property in Dubai.
The buyer needs to pay the valuation fee for the Dubai authorities while buying the property. The valuation fee establishes the real-time value of the property and helps the parties to evaluate the property. The Valuation fees usually range between AED 2500- AED3500.
Oqood Fees (Off-plan Properties)
The fee comes into plays while buying off-plan properties. The fees aim to cover the registration of all contracts between the buyer and the off-plan property developers. The fee currently fixed at 4% of the total purchase price.
The property owners are required to pay monthly rental tax to the local municipality. The rate of the tax is 5% of the average rental in the neighbourhood. The tax is paid post-registration of property by owners, though the owner can collect fees from tenants in case of rented property and deposit with the authorities.
The purchase of property in the Dubai real estate market guarantees good returns for investors. The infrastructure is developed, keeping in mind the strict adherence to international construction standards. A large number of properties gives buyers plenty of options to own a holiday home and global real estate investment.
We at Commitbiz consultants help our clients to set up business in Dubai and other Emirates of the UAE. Our experts can provide all the information required to buy a property and assist our customers by keeping all their concerns at bay. We also offer all the assistance to make the right decisions in choosing and purchasing the property in the Dubai property market. Please contact us, and we are happy to assist!