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- 2025
- Schofer Properties.
- All rights reserved.
The purchase of a property alone does not entitle you as the owner to take up permanent residence in the United Arab Emirates. Rather, you must apply for a permanent residence permit (Residence Visa) in an independent procedure. The value of the property and the existence of any financing are decisive in determining whether you are entitled to apply for a residence visa in your capacity as the owner of the property and which options are available to you.
Freehold is the most comprehensive right to a property. The holder of a freehold property is its absolute owner and can sell, borrow against or otherwise dispose of the property, provided this does not violate the rights of third parties or public policy. Freehold ownership is unlimited in time and a Long-Term Leasehold, on the other hand is a long-term lease with a term of up to 99 years.
In addition to the purchase price, a broker’s commission of 2% of the purchase price is usually charged. The Dubai Land Department, which keeps the land register, usually charges a transfer fee of 4% of the purchase price, which is paid equally by the buyer and the seller, unless the parties have agreed on a different cost allocation. In addition, there are fees of at least AED 2,000 for the Real Estate Trustee Office, which is responsible for the execution of the real estate purchase, as well as fees for the issuance of the title deed, which amount to approximately AED 300. Additional costs may be incurred for the application of No Objection Certificates (NOC), which are required by project developers, for example.
If you purchase a property that is not yet completed, you will be entered in the Interim Real Estate Register, which is maintained by the Dubai Land Department. The proof of this registration is called Oqood. If the property has been completed or an existing property is being purchased, you will be registered as a buyer in the Real Estate Register. Based on this registration you will receive a title deed. With the Oqood or with the Title Deed you can prove your right to a property as a person identified on it.
In order to rent an apartment inDubai, you generally need a valid residence permit (Residence Visa) and a valid Emirates ID Card. Exceptions may arise when renting hotel apartments or vacation homes (Airbnb). For these rental properties, it is usually not necessary to present the aforementioned identification documents. A valid passport is then sufficient.
A landlord can only increase the rent if he is entitled to do so by law. This is the case if, on the one hand, the landlord has notified the tenant of the requested rent increase within a period of at least 90 days, unless the lease agreement specifies a different period, and, on the other hand, the current rent is above average. The latter is given if the rent is at least 11% below the average rent paid in the same district. Depending on how high the deviation from this average rent is, the landlord may increase the rent by a maximum of 20%. Whether and to what extent the landlord is entitled to increase the rent is determined by the so-called Rental Index Calculator, which is available on the website of the Dubai Land Department.
The rental deposit required by landlords in Dubai is usually 5% of the annual rent for unfurnished properties and 10% for furnished properties. The rental deposit must be paid at the beginning of the tenancy and refunded in full or in part to the tenant upon moving out. The law does not contain any regulations on the deadline for repayment or on deductible items. In any case, the deposit may in principle only be used to carry out repairs when the tenant moves out, but not for renovation work during the tenancy.
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