Advice on buying Dubai Property

It was only in the year 2002 that Sheikh Mohammed bin Rashid Al Maktoum of Dubai had a this vision of creating this city of the future, and in doing so created a global society. At the same time giving people from other parts the world the right to purchase property on Dubai soil.
 
Dubai’s future is based upon creating a vibrant tourist market with 15 million tourists by the year 2010.  With a business environment based around the property market, Dubai is looking at a prosperous future.
 
Property purchase in Dubai is not difficult at all, especially if purchasing “Off Plan.” This process, which does not require the use of a lawyer, as all property purchase in Dubai is within special zones designated by the government, and because of this all property purchase contacts created in Dubai must be passed, before the government before the customer is allowed to sign.   (However we would always advise that you take legal advice with any property purchase).
 
Future demand for property in Dubai, for the foreign investor looks very secure with reported Capitol appreciation in recent years showing 15-25 annually. And property rental returns showing between 10-20 annually as well, and these returns are tax free.
 
Property Purchase:
 
Unlike some other countries there is no need to obtain a registration number before a property purchase.
Investors used to property purchase in other parts of the world will be surprised to hear that with property purchase in Dubai there are no legal and notary fees (however we advise that you take legal advice before hand).
Land Registration tax is 1.5, which is paid to the government when the property transaction is completed.
Transfer Tax between 1-7 paid to developer on resale of contract before completion.
One of the main concerns for the foreign property investor in Dubai is that property purchasers do not quite own the freehold to their property, it is anticipated that there will be an upsurge in demand for property when the government introduces the “freehold law” in the near future.

 
Finance is only allowed to non-UAE members on certain property projects –Dubai Islamic Bank and Alma (DIB) will help with the financing of properties at comparative interest rates usually between 6-9 over 15 years.
 The Sharria law the banks will not permit you to buy your property via a mortgage. The way it works is as follows the bank will buy your chosen property for you. Then instead of paying off a property mortgage. Investors pay on a leaseback basis. At the end of the leaseback you then purchase your property from the bank for 1 dirham.
Although your property agent will obviously be able to advise you on where finance is available, you might want to speak with your financial adviser before you go.
 
One thing is certain, the property market will continue to grow in Dubai, and with the tax advantages Dubai bestows, and it is a great place to live.