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Dubai Jobs

Dubai has rapidly grown into a leading tourism and real estate capital of the world. It has gained the status of a progressive employment capital. A lot of international companies in the field of construction, hospitality, finance, media etc are setting business in Dubai. They need a lot of qualified staff to work with them and hence there are great job opportunities here....

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Dubai Palm Islands

Dubai Shopping

Dubai, the shopping capital of the Middle East, is a shopper’s paradise! What better way to spend your leisure time and beat the Dubai heat than go on a shopping spree in one of the many classy air-conditioned shopping malls which adorn the Dubai landscape.....

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Dubai Accommodation

Hotels in Dubai

Besides the Burj-al-Arab, Dubai offers a wide variety of hotel accommodation which is generally considered to be of very high standard and great value for the money. The range includes everything from budget hotel Dubai accommodation to luxury hotels. ...

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Dubai Entertainment

Burj Dubai

Mirror mirror on the wall, which is the tallest tower of them all? Very soon the answer will be “Burj Dubai”. Burj Dubai is an Arabic word which means "Dubai Tower" when translated to English. This soon to be the tallest man made structure in the world is currently under construction in Dubai, United Arab Emirates. ...

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Dubai Jobs

Property and Real Estate in Dubai

It was not until 2002 that foreign buyers were allowed to own properties in Dubai. What passed for purchasing of properties in Dubai were long term leasehold agreements wherein the property would revert back to the owner after fifty or 99 years or upon a previously agreed term. To liberate and strengthen the market for properties in Dubai, the leadership of Dubai passed a law to allow foreign buyers to purchase land in Dubai with full freehold rights to the land. Still, this law is limiting freehold rights to certain real estate developments. Further still, there was no list included in the law which allowed freehold rights to foreign buyers.

 

As a mark of its infancy, transactions made in the Dubai real estate market do not require the presence of lawyers. This really isn’t advisable because it is the lawyers themselves who will read and understand the fine print of any sale contract. Also, a property sale isn’t formalized with a deed of sale as it is in most other real estate markets in other parts of the world. Since the freehold law is ambiguous in nature and the buying and selling process for properties in Dubai, vague, it is very much recommended that a lawyer study the sale contract and be present during the formalizing of the sale agreement.

The good side to buying properties in Dubai is that foreigners who own properties in Dubai may apply for a residency visa subject to the rules of immigration. Another incentive for buying properties in Dubai is that foreign buyers are not required to have an existing bank account in Dubai. The really big one for buying properties in Dubai is that there are no taxes at all. The only industries that get taxed in Dubai are the banking and oil sector as well as the cigarette manufacturers and smokers who are assessed a whopping 100% duty.

 

 

As mentioned above, freehold rights for foreigners who buy properties in Dubai are limited to certain developments. Let me digress a bit as I tell you that the term “freehold rights” means absolute ownership of the property where you may sell or transfer ownership of said property at any given time without encumbrances or any restrictions.

It was only last year that the leadership released a list of properties in Dubai where freehold rights for foreigners are available. The freeholds list provisions for the inclusion of 23 designated freehold areas and 45 plots. Included in these areas are The World Islands, The Dubai Marina, Al Barsha, The Palm Islands, Jebel Ali, Emirates Hills and other developments that are geared mostly towards the international community..

The move to liberalize the real estate industry in Dubai has been a long time coming. Historically, Dubai has been the most liberal state of the United Arab Emirates (UAE). Still there are fears in the foreign community about the stability of the Arab region. This fear is reflected in the way mortgage companies do business. Normally, the mortgage company will use the purchase property as collateral. In the case of properties in Dubai, the mortgage company will require some other form of collateral that does not exist in Dubai. Foreigners, especially expatriates, need not be surprised if a housing loan company asks them for other possible property outside Dubai to be used as collateral.

The above paragraph and the vagueness in real estate transactions for sale of properties in Dubai make it imperative for buyers to have legal representation before and during the transactions. This is especially important because if the property owner defaults in his payments, he might not lose only one, but two properties. The real kicker is that you lose the home by repossession and are still considered to be indebted to the housing loan company until the house has been sold by the company. Even then, the sale of the property does not guarantee full payment of your loan. What if the company only manages to sell the property for half of its original value? If you are going to buy properties in Dubai with the help of loan companies, makes sure that you are able to make the monthly loan payments. A default on the monthly loan payments can ruin your life.