Expat property purchase in Dubai

The past decade is now being seen as a blessing for Dubai, as ever increasing numbers of expat professionals arrived to benefit their careers, their bank balances and, ultimately, Dubai’s economy.

Nowadays, opportunities for expats are booming as is property investment, and tourist numbers are soaring due to word-of-mouth descriptions of its unique attractions. Asians are the latest tourist sector to discover the city state’s desert paradise. One unique feature of the emirate is that foreigners are allowed to rent, buy or sell villas, apartments, condos and houses in the city. However, for those expats to whom property purchase is a must, checking online and offline as regards the agent and the property itself is advisable, as scams are frequent.

Once you’ve established your chosen agent’s credibility and the status of your chosen property, you’ll need to place 25 per cent of the full cost as a down payment. Expat loans can be had from Dubai-based banks, usually up to 70 per cent of the full price, and checking interest rates across the banking sector can save on rates normally set between 2.88 to five per cent. Before a loan is granted, the property will be inspected by valuation consultants charging between Dh2,500 and Dh3,000, payable by the buyer.

A new life insurance policy is mandatory for mortgagees, seen as a guarantee from the buyer, no matter his or her age. Charges will depend on pre-existing health conditions if any as well as on age. Life insurance doesn’t have to be taken out at the bank offering the loan, with shopping around for the best rate recommended. If the purchase is a new-build, Developer’s Property Service Charges will need to be paid once the finalisation of the transaction has taken place.

The charge is calculated on pro-rata and is paid annually according to the agreement between the developer and the purchaser. Newly–arrived expat property owners may be surprised to find the developer is responsible for cleaners, landscaping, communal electricity, security, insurance and even pest control – hence the annual service charge, based on the square footage of the property.