Guide to renting and buying properties in the UAE

As Dubai is the city of expats and most of them are renting flats and villas without stepping out of the city. TeamBrew talked with Unique Properties CEO Arash Jalili, to educate our readers about renting and buying properties in the UAE.

What are the steps of renting a property in Dubai?

1. What are you looking for? A villa or an apartment? This is an important consideration and will determine your next steps
2. Set your Budget
3. Search for the right property with the parameters you have in mind through online portals
4. Choose a broker – this is very important to ensure they are reliable and can deliver exactly what you are looking for
5. Set appointments to start viewing properties
6. Make an offer and don’t forget negotiation is part of the process
7. Finalize and book the house/apartment you have been dreaming of which includes signing the tenancy contract
8. Tenancy Contract registration, the Ejari Registration is next
9. Connect Dewa to ensure you have electricity and water authority
10. Move-in!

What are the legalities and legal requirements to rent a property?

When renting a property, you need your passport and a copy of your residence visa copy or an original letter from your sponsor/company stating that your visa is under process. This is the first step that shows brokers and landlords that you are eligible to rent a property in the UAE. Without a residence visa, you will not be able to set up water or electricity or get gas or access to the internet in your new house.

What are the steps of buying a property in Dubai? Is anything unique about the buying process?

• Create a wish list of your property! (must-have features in your property)
• Set your budget and think about how you are going to get them financed. Will you pay cash, or will it be on a mortgage?
• If you decide on a mortgage, the first step is to get your pre-approval
• Search for the right property through online portals.
• Choose a reliable broker
• Start viewing properties
• Make an offer and don’t forget to negotiate
• Sign the agreement of sale (Form for Memorandum of Understanding (MOU))
• The seller will get a NOC which is a No Objection Certificate
• Transfer the property ownership

What are the legal requirements and steps for buying a property in Dubai and how are they different from renting?

The differences between renting and buying properties include signing the memorandum of understanding and the no objection certificate. Residents are entitled to purchase residential properties that are located in designated leasehold or freehold areas, and the process of buying is relatively straightforward.

Laws in the country, specifically Real Estate Law No. 7 of 2006 allow residents to purchase property in leasehold areas, or in freehold areas. Residential properties in Dubai remain tax-free after the introduction of a Value Added Tax in the UAE in 2018 and these properties are either zero-rated or exempted from tax altogether.

Another perk of investing in Dubai properties is receiving a residential visa for the investor and their dependents. Anyone who invests at least AED 750,000 in property can obtain a 3-year visa and an investment of at least AED 2 million will allow for a 5-year or 10-year visa. In addition, ‘retirees’ over 55 years of age are eligible for a 5-year renewable visa if they purchase a property worth AED 2 million or above.

The requirement of buying a property in the country is fairly straightforward and the foreign buyer must simply hold a valid passport to be able to buy a property, it is not necessary that they are a resident of the country.

What are the advantages and disadvantages of buying a new property away from the city?

There are many advantages to renting or buying a property in Dubai. Some of the advantages are more affordable prices, houses and apartments are bigger and more spacious and there are plenty of amenities and greenery. For example, living in a compound like Arabian Ranches allows for enough space to have compound pools, a clubhouse, and additional amenities within the compound. There is also a high potential for capital appreciation and a high return on investment. However, some of the disadvantages of living outside the city are longer commuting times to work if you work in the city or on the other side of town. There is also a lack of easy access to public transportation for communicating and you may have to drive to work. Lastly, we live in a bustling city where new projects are constantly coming up and this means living outside the city means ongoing construction for upcoming projects.

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Unique Properties CEO Arash Jalili