As vast expanses of desert, the United Arab Emirates (UAE) are not easily noticed unless you look for them. With its wealth coming from oil, the country has been able to invest heavily in infrastructure such as highways, airports, and residential developments.
These investments have helped make the UAE one of the most affluent countries in the world. It is also a great place to live if you are looking to lower your cost of living.
With all this said, it makes sense that real estate would be an expensive investment option. The fact of the matter is though, investing in property in the UAE can be less expensive than buying or renting anywhere else!
This article will go into detail about how real estate works in the UAE and some of the benefits of owning a house here.
The process of selling a property in Dubai
As with any business, there are different ways to sell a house or apartment. You can hire a professional agent, seller broker, or you can handle it yourself. And while buying a home is definitely an exciting experience, finding a new owner for your property will likely take some time!
As professionals, sellers usually choose this route because they know that their real estate agent has their best interest at heart. An agent’s main goal is to find YOU a new home so you don’t have to be concerned about anything other than looking around.
That said, what people typically forget is that not everyone has access to helping them find a home. If you do decide to deal directly with the person who owns your home, make sure you understand the process before jumping into things.
There are several steps involved in getting your house sold, and most of them fall under three categories: marketing, negotiation, and close-out.
How to approach a property manager
As mentioned before, it is not easy being a real estate agent in Dubai. There are very few that remain loyal to an agency for longer than two years as most agents are hired individually through referrals or by competing against other agents’ services.
Agents must also deal with difficult clients who do not cooperate with you and try to take advantage of you. This can be due to personal issues such as money, children, etcetera or because they feel cheated after investing their time into listing and selling a home only for the agent to be unable to find them a buyer.
There are many reasons why people lose faith in real estate professionals so make sure your tone is friendly and professional at all times! Avoid becoming enraged if this happens as this will negatively affect how well you perform your job.
Also remember that not everyone makes a good investment so consider what type of person each potential client is before agreeing to work with them. Find out whether they seem trustworthy and intelligent and if they have done similar jobs in the past.
Contract for sale
A contract for sale is an agreement that defines how both parties will interact with each other after signing it. It can be done via email or through paper, but most real estate agents agree that using a mobile app to create your contract is the best way to do it.
A contract for sale should include all of the important information about the property. This includes details such as the house type (e.g., terrace, townhouse), number of rooms, apartment or unit style (i.e., penthouse, duplex), address, price, and terms like possession date, moving out date, etc.
The seller must agree to these terms before they sign the document so make sure you have enough time to negotiate! Sometimes things get busy and there’s no time to go back and renegotiate, so be aware of this and plan ahead.
Agreeing to buy a home is definitely not something people do lightly so don’t feel too pressured when you make an offer.
Contract for purchase
A contract is an essential part of buying or selling real estate in the UAE. It is not something you can skip over because it contains important information about your property, including what properties you have expressed interest in and how much money you have to spend.
A contract will contain very specific details about your new home such as the bedrooms, bathrooms, and plots of land it has access to. It also includes how many meters each apartment block has, how close the building is to public transport, and if there are any special amenities like pools or gyms that are nearby.
The seller’s agent will usually draft the contract so they can review it before presenting it to you. Make sure both you and they have gone through every bit of the contract carefully!
Agents sometimes try to include too much content in the contract at this stage but it is better to let people go house hunting with only basic info given until after they make their choice. This way, they don’t feel pressured into making a decision immediately.
At that point, the agent can compare all the contracts they received from sellers and find one that everyone agrees on. Sometimes buyers look for similar houses and get several offers, which helps determine the price more accurately.
In some cases, the agents may ask you to put down a deposit first before drafting the final contract so that they know whether or not they want to represent you once it’s done.
The next thing to know about investing in real estate is how much you need to have as a deposit. This depends on what type of property you want to invest in!
Some properties require only a 10% down payment, while others ask for 20-30%. A lot of this comes down to the genre of investment that each property falls under.
For example, buying a house or apartment requires larger deposits than buying land or houses/apartments built onto the space already!
This is because investors look at it as an asset instead of just a piece of property, so they’re given credit for it in their income statements and thus requiring more money up front.
Land is also slightly less risky than a house, as no one can take it away from you unless you’re in default on your mortgage! That said, there are many ways to put together a portfolio of land, which may not require a big downpayment.
Registration with the Dubai Land Department
Now that you have determined that real estate is a great way to make money, you will need to find an area to start your business. Since this article focused mostly on getting started as an investor, we will leave those steps for later but it’s important to know that even though investing in real estate may seem easy enough, there are lots of legal requirements that must be met before you can begin!
One of these things is registering with the Dubai Land Department (or DLD). This organization handles all property registrations within Dubai and they do so under their jurisdiction. By law, every piece of land or house in Dubai needs to be registered with them, and investors often times use their services to register properties they plan to purchase.
While some of the fees associated with registration are nominal, there are also additional fees that must be paid depending on what type of transaction takes place. These include taxes, brokerage fees, and other regulatory fees. Make sure to check out the various costs related to real estate registration here.
Registration with the Dubai Property Department
The next thing you will need to do is register your business as an agent. This is done through the Dubai Properties Agency Council (DPC). You can find out more information about this organization here.
The DPC has two main functions; to regulate agents and to offer rewards for selling or renting properties. They also run courses that cover everything from general real estate knowledge to marketing strategies and how to use social media effectively.
These courses are not too expensive and are usually paid for via membership fees alone, making it very accessible to anyone. There are even some scholarships available so if you would like to take advantage of these opportunities then there is no cost involved!
By registering as an agent with the DPC you will be giving yourself a good start towards success in the real estate industry.
Is Dubai a good place to be a real estate agent? ›
Being a real estate agent in Dubai can be a very lucrative job, however it can be a very stressful job if you aren't enjoying what you do. One of the biggest mistakes that new real estate agents make is that they don't take the time to really learn about the property market or invest into themselves.How do real estate agents work in Dubai? ›
In Dubai, you cannot be a freelance real estate agent. You must be an employee of a registered real estate brokerage to apply for a Brokers Permit. UAE citizens and GCC nationals can easily sign up for the licensing process. Expats, however, need to have a valid residency visa to apply for a job as a realtor in Dubai.Do real estate agents make a lot of money in Dubai? ›
The top few brokers can earn Dh5million ($1.36m) per year, the agency claims. The sale of a relatively modest home priced Dh2m would earn 4 per cent commission, or Dh80,000, which is split 50/50 between the agency and the agent.How much does it cost to get real estate license in Dubai? ›
The RERA registration exam would cost AED 3,200 to those with bachelor's degrees in any field. AED 6,300 is the exam fee for those who don't hold a bachelor's or master's degree. Besides, if you hold no educational qualifications, the RERA registration exam would cost AED 15,750.Does buying a house in Dubai gives you residency? ›
Purchasing real estate in Dubai may grant the buyer a residence permit. According to the UAE investor visa program, the property must be completed upon the purchase and its value must be of at least AED 1 million. Holders of residence visas through real estate purchase may also sponsor their dependents.Is it better to rent or buy a house in Dubai? ›
If you know that you will be able to make the down payment (minimum 20% for expats) and can pay off the mortgage in monthly repayments, then you are in a better position to invest in property in the UAE.Is it easy to be a real estate agent in Dubai? ›
Becoming one of the highly regarded real estate agents in Dubai is no easy task. As it is a competitive industry, you will have to work hard, engage with your customers regularly, and learn to identify the needs of your clients.How to make money in Dubai real estate? ›
- Understand the Market. ...
- Know about Different Property Types and their Worth. ...
- Choose the Location Wisely. ...
- Invest in Future-proof Projects.
- 2) Make Sure You Have The Necessary Documents In Place. In order to prepare the Form A, you must provide your broker with copies of: ...
- 3) Once A Buyer Is Found, Agent Prepares The Form F. ...
- 4) Settlement Of Mortgage Payments, If Applicable. ...
- 5) Transfer Ownership At The Dld.
- Chief executive officers (CEO) Average monthly salary: Dh100,000. ...
- Cardiologist. Average monthly salary: Dh89,000. ...
- Public Relations Managing Director. ...
- Judge. ...
- Supply Chain Manager. ...
- Senior Bank Director / Vice President. ...
- Chief Marketing Officer (CMO) ...
- Chief Financial Officer (CFO)
How much is a rent in Dubai? ›
Renting a House or Apartment
The average rent in the UAE ranges between 30,000 to 50,000 AED (8,100 to 13,600 USD) per year for a studio apartment. One-and two-bedroom apartments range between 70,000 and 100,000 AED (19,000–27,220 USD).
One of the key advantages of buying a property in Dubai is the high ROI offered for buyers and investors. Most key neighbourhoods in the city offer ROI of over 6% when it comes to apartment sales and the villa communities generally offer rental returns of over 4%.Can you buy property in Dubai without residency? ›
' Yes, foreign nationals, which includes both expatriate residents and non-resident investors, can purchase property in Dubai on a freehold basis. This allows foreign nationals to buy, sell or lease their property.How to start real estate in Dubai? ›
- Name Approval.
- Initial Approval + Tasheel.
- Memorandum of Association.
- UAE local partner.
- Real Estate Brokers Registration Services.
- Good Conduct Certificate.
- Dubai Land Department Approval.
- Dubai Rented Office Space.
Considering your completion of the previous DREI Certified Training for Real Estate Brokers Course, the RERA exam should not be too difficult which for most candidates is an easy pass.Can a US citizen buy a house in Dubai? ›
In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don't live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.How long can you stay in Dubai if you own a property? ›
Once you have purchased the property you may apply for a residence visa. This visa will be valid for up to 2 years, renewable, as long as you still own the property and you visit the country at least once every 180 days. Absence for a longer period may lead to the visa's cancellation.Can I live in Dubai permanently? ›
If you invest in a property in the UAE worth at least 5 million AED, you can acquire a five-year visa. You must meet the following terms for the visa: You must hold onto the property for at least three years. You must not purchase the property in the form of a loan.Is relocating to Dubai worth it? ›
With tax-free income and just 5% VAT on goods and services, Dubai offers the rare chance to enjoy life, take a comfortable vacation once in a while and boost your savings all at once. All these factors have made this city a perfect place to live and invest your money.How much money do you need to comfortably live in Dubai? ›
To live comfortably in Dubai, you should expect a salary of at least 10,000 to 15,000 AED. This should allow you to cover your rent and bills and have enough disposable income to enjoy Dubai to the fullest.
Why are Dubai apartments so cheap? ›
Weak occupancy rates are a major reason why property prices in Dubai are low by regional standards. Real estate in prime locations such as Dubai Marina and Dubai Internet City are only about US$4,000 per square meter (~$200 per square foot).Which country is best for real estate agents? ›
While ZipRecruiter is seeing annual salaries as high as $111,000 and as low as $23,000, the majority of Real Estate Agent Entry Level salaries currently range between $40,500 (25th percentile) to $79,500 (75th percentile) with top earners (90th percentile) making $100,000 annually across the United States.What is the biggest real estate company in Dubai? ›
First and foremost, it must be a residential property, not a commercial. Only the residential property enables you to get residency visa. This type of property can only be purchased in areas, where an ownership of a freehold property for foreigners is allowed.What are the pros and cons of buying property in Dubai? ›
- Pros. The metropolis offers plenty of benefits, attracting both local and international buyers. ...
- High rental yield. ...
- Growth of population. ...
- World-class infrastructure. ...
- No taxes. ...
- Safety and stability. ...
- Strict rules. ...
- An aviation hub.
Because of the lack of restrictions, buying property in Dubai is a pretty straightforward process. Many Dubai properties are bought as freehold but leasehold properties also allow you to own the property for anywhere between 30 and 99 years.Is it hard to be a real estate agent in Dubai? ›
Becoming one of the highly regarded real estate agents in Dubai is no easy task. As it is a competitive industry, you will have to work hard, engage with your customers regularly, and learn to identify the needs of your clients.How much do estate agents get paid in Dubai? ›
The average salary for Real Estate Agent is AED 5,000 per month in the Dubai, United Arab Emirates Area. The average additional cash compensation for a Real Estate Agent in the Dubai, United Arab Emirates Area is AED 5,820, with a range from AED 23 - AED 405,804.Is real estate a good business in Dubai? ›
Investors can receive a gross rental yield of 5-9% on average. Property prices are lower than in any other city around the world. Let's take a look at reasons that make Dubai an affordable place for living and investing.