Unveiling the Dynamics of Dubai’s Ultra-Luxury Real Estate Market in 2024 Posted on February 6, 2024 by badmin Dubai, often regarded as the crown jewel of the United Arab Emirates, has emerged as a magnet for the world’s wealthiest individuals in search of lavish residences in a welcoming environment. Witnessing a remarkable surge, luxury real estate sales in Dubai soared to an astounding $7.6 billion last year, cementing the city’s status as a global hub for high-end property acquisitions. We will delve into the factors driving this unprecedented growth, focusing on the affordability of Dubai’s properties, the surge in demand for luxury waterfront residences, and the city’s prominence in the $10 million-plus and $25 million-plus home markets. Dubai’s ultra-luxury real estate market is undergoing significant maturity, moving away from impulsive buying to well-informed investment decisions. This shift reflects a stable and confident market characterized by thoughtful investment choices and long-term sustainability. Recent market analyses indicate remarkable milestones, with Dubai witnessing a surge in upscale property sales and revenues, signaling rising demand for ultra-luxury properties. Dubai’s Global Ranking: Dubai’s luxury real estate market has propelled the city to the forefront of global rankings. Currently, it stands as the fourth-leading city for homes priced at $10 million and above, trailing only behind New York, Los Angeles, and London. Furthermore, Dubai secures the fifth position globally for the largest number of homes sold at $25 million and above. This data underscores the city’s appeal to the world’s elite, positioning it as a premier destination for luxury real estate investments. Super-Prime Market Boom: The insatiable demand from international ultra-high-net-worth buyers has not only driven the $10 million-plus market but has also supercharged the super-prime market, comprising homes priced at $25 million and above. In 2023, the number of super-prime homes traded doubled to 56 deals, amounting to an impressive $2.3 billion. This surge underscores Dubai’s growing allure for the most discerning and affluent real estate investors. Dubai’s Rise as a Luxury Real Estate Hub: Dubai’s rise as a luxury real estate hub can be attributed to several factors, including its strategic location, investor-friendly policies, and world-class infrastructure. The city’s favorable tax regime and regulatory environment have attracted investors from around the globe, seeking to capitalize on the lucrative opportunities offered by Dubai’s vibrant real estate market. Additionally, Dubai’s iconic landmarks, such as the Burj Khalifa and Palm Jumeirah, have further enhanced its reputation as a global luxury destination. Informed Buyer Behavior: Today’s ultra-luxury real estate buyers exhibit a discerning approach, emphasizing the concept, uniqueness, and location of the property, alongside the reputation of the developer. This trend reflects a deeper understanding and commitment to making sustainable and profitable investment choices in the real estate domain, prioritizing long-term value and stability. Investor Focus: Investors in the ultra-luxury real estate market prioritize Return on Investment (ROI) and the effectiveness of their investments. Key considerations include resale ease, rental profitability, prime location, and long-term investment potential, with a focus on comprehensive insights and detailed market analysis. End-User Buyer Focus: End-user buyers in the ultra-luxury segment prioritize quality, location, amenities, and privacy. Exclusive properties cater to discerning buyers valuing serene living environments and tangible luxury. Developers like MERED prioritize superior quality, premium materials, and exclusive amenities to meet the nuanced needs of ultra-luxury buyers. Digital Convenience in Property Purchasing: With a growing international buyer base, digital facilitation in property transactions is imperative. The demand for digital convenience and streamlined transaction processes is reshaping the property acquisition journey, aligning with Dubai’s forward-thinking urban master plan. Dubai’s appeal as a global magnet for professionals is driving significant growth in its real estate market. With a thriving job market, growing population, and increasing property transactions, Dubai remains a force to be reckoned with in the global real estate arena. As we move forward, strategic navigation and informed decision-making will be paramount for both investors and residents to thrive in Dubai’s dynamic real estate landscape. Dubai’s performance in the luxury real estate market showcases a strategic shift towards informed investment, marked by record sales and a diverse investor base. This evolution signifies market maturity and a focus on long-term value, positioning Dubai for sustained growth in the global real estate arena in 2024 and beyond.
Dubai Real Estate Set to Soar: Expert Predicts 5% Growth Amid UAE’s Economic Surge Posted on February 6, 2024February 6, 2024 by badmin Dubai’s real estate market appears poised to maintain its growth trajectory into 2024, as expert forecasts indicate a 5% growth in the Dubai real estate market for 2024, propelled by substantial economic expansion across the UAE. This growth is poised to bolster numerous industries, with Dubai’s real estate sector emerging as a standout beneficiary. Dubai’s real estate market remains robust, solidifying its status as a top choice for investors pursuing diversification and lucrative returns. In January 2024, Dubai’s real estate sector demonstrated resilience by achieving Dhs35 billion in sales, with off-plan sales witnessing a notable 25% year-on-year increase. This performance underscores the continued strength and vitality of Dubai’s real estate market into the new year. According to the report, Dubai’s real estate sector saw a remarkable 17% year-on-year increase in recorded sales transactions, totaling over 11,000 transactions compared to 8,712 in January 2023. Additionally, there was a notable surge in transaction values, reaching nearly Dhs35 billion, marking a 27% increase from the same period last year. Key Insights Demand for Off-Plan Properties: Off-plan properties witnessed a surge in demand, with a year-on-year increase of approximately 25% in volume, totaling around 6,000 recorded transactions. The value of off-plan transactions surged by approximately 21% year-on-year, reaching approximately Dhs15 billion. Existing Property Transactions: Existing property transactions also experienced growth, with an approximately 8% year-on-year increase in volume, totaling over 5,000 transactions. The value of these transactions surged by 31% year-on-year, reaching Dhs21 billion. 3. Luxury Real Estate Soars to New Heights The surge in demand for luxury waterfront residences, and the city’s rise to prominence in the AED 40 million-plus and $100 million-plus home markets. Dubai’s real estate boom is fueled by a continuous influx of professionals from around the world drawn by promising career prospects, competitive salaries, a high quality of life, and the allure of a warm climate. This trend underscores Dubai’s appeal as a global magnet for talent, contributing to the city’s population growth and increasing demand for residential properties. According to the Dubai Statistical Center, the city’s population reached 3,604,030 as of July 2023, up from 3,515,264 in July 2022. The Dubai Development Master Plan forecasts a continued surge, with the population projected to reach 5.8 million by 2040. This population expansion drives demand for residential properties, leading to upward pressure on rental prices. The trajectory of rising rental prices shows no signs of slowing down in 2024. A booming job market, coupled with a growing population and increased property transactions, ensures that Dubai’s real estate market remains robust. This unyielding trajectory underscores the city’s resilience and attractiveness to investors and residents alike. As Dubai’s real estate market continues to surge, it is crucial for investors and residents to navigate the waves strategically. Making informed decisions in this dynamic landscape is essential to capitalize on opportunities and mitigate risks. Whether investing in properties or seeking rental accommodations, understanding market trends and dynamics is key to success.
Dubai’s Shift Towards Remote Work from Home Posted on October 27, 2023 by badmin Today’s rapidly changing work landscape has made remote work more than just a trend; it has turned it into a way of life. As we adapt to new realities, Dubai has taken centre stage as a prime destination for those who seek the flexibility and convenience of working from home. Endless Possibilities in the Heart of Dubai Dubai, a city known for its breathtaking skyline and vibrant culture, offers endless possibilities for remote workers. Its strategic location at the crossroads of Europe, Asia, and Africa, combined with its world-class infrastructure, makes it an ideal hub for remote work. Whether you’re a digital nomad or a professional looking to telecommute, Dubai’s diverse range of opportunities caters to all. Unmatched Connectivity and Infrastructure One of the key advantages of working from home in Dubai lies in its world-class infrastructure. Dubai offers readily available high-speed internet, reliable telecommunication services, and cutting-edge technology. This infrastructure empowers you to maintain connections with your colleagues and clients worldwide. In Dubai, you can have confidence that your virtual meetings and tasks will operate smoothly without interruptions. A Lifestyle Like No Other An enviable lifestyle for remote workers is on offer. You can choose to work from the comfort of your own apartment, enjoy the city’s many co-working spaces, or even set up your laptop on one of Dubai’s beautiful beaches. The city’s year-round sunshine, pristine beaches, and diverse culinary scene create a perfect work-life balance that many can only dream of. Safety and Security Well-known for its commitment to safety and security, the city prioritises the health and well-being of its residents and visitors, which is even more critical in these times. Stringent health and safety measures have been implemented to ensure that you can work and live with peace of mind. Cultural Diversity and Networking Opportunities Another compelling reason to work from home in this global metropolis is its unique cultural diversity. With people from all over the world calling Dubai home, you’ll have the opportunity to network with professionals from various industries, potentially opening doors to new collaborations and career prospects. Embracing a new way of life in Dubai through working from home goes beyond mere convenience. It involves integrating work, leisure, and personal growth in a dynamic and vibrant environment. Dubai’s unmatched infrastructure, safety measures, and cultural diversity position it as an ideal destination for remote work. If you’re considering venturing into the world of remote work, Dubai beckons, promising a unique and enriching experience in one of the world’s most exciting cities.
Dubai’s Prime Real Estate Investments 2023-2024 Posted on October 27, 2023October 27, 2023 by badmin Dubai, known for its gleaming skyscrapers, luxurious lifestyle, and thriving economy, has consistently been a hotspot for real estate investment. The year 2023-2024 is no exception, as the city continues to grow and evolve. Whether you’re a seasoned investor or looking to make your first foray into the Dubai real estate market, it’s essential to be well-informed about the best neighbourhoods for investment. In this blog, we will explore the most promising areas to consider for your next real estate venture in the vibrant city of Dubai. Dubai Marina Investors highly favour the iconic Dubai Marina, which offers a wide array of high-end apartments and luxurious penthouses in this waterfront community. It attracts both expatriates and locals due to its stunning marina views, numerous dining and entertainment options, and its proximity to the beach. The ongoing development and the upcoming Dubai Harbour project further enhance its appeal. Downtown Dubai Downtown Dubai, home to the world’s tallest building, the Burj Khalifa, thrives as a bustling hub at the city’s core. It provides a unique and dynamic living experience with a mix of residential, commercial, and retail spaces. The area constantly evolves, and new projects assure outstanding rental yields and capital appreciation. Its appeal is further bolstered by attractions like the Dubai Opera, world-class restaurants, and luxury shopping options. Palm Jumeirah Palm Jumeirah, an artificial archipelago shaped like a palm tree, symbolises Dubai’s opulence. Investors looking for high-end properties favour this exclusive island, which offers a variety of upscale villas, townhouses, and apartments. The area’s pristine beaches, luxury resorts, and breathtaking views further enhance its appeal. The completion of The Palm Tower and Nakheel Mall has introduced new dimensions to the area. Jumeirah Village Circle (JVC) Jumeirah Village Circle (JVC) is gaining prominence as a rising star in the realm of more affordable real estate options. It presents a well-rounded selection of villas, townhouses, and apartments at competitive prices, appealing to both investors and residents. JVC offers excellent community facilities, parks, and retail outlets, solidifying its status as a prime location for budget-conscious investors seeking high rental returns, driven by its steady growth in recent years. Dubai South Dubai South, housing the Expo 2020 site and Al Maktoum International Airport, rapidly develops as a district poised for substantial growth and transformation. This makes it an exciting prospect for long-term investment. Dubai South offers a bright future for real estate investors with its array of affordable housing options and ongoing infrastructure developments. Jumeirah Beach Residence (JBR) JBR is a highly sought-after waterfront community renowned for its stunning beach, trendy promenade, and a diverse array of dining and entertainment options. The area entices a broad spectrum of residents and visitors with its mix of residential units, ranging from compact apartments to spacious penthouses. JBR continues to be a promising neighbourhood for real estate investment, thanks to its high demand and potential for capital appreciation. Arabian Ranches For those seeking a family-friendly environment, Arabian Ranches stands out as an excellent choice. This established community showcases lush green landscapes, beautiful villas, and world-class amenities. It holds a reputation for delivering a high quality of life, making it an attractive prospect for investors in search of long-term growth and stability. Dubai’s real estate market is on the cusp of experiencing another year of growth and diversification. Whether you’re in search of luxury, affordability, or long-term prospects, Dubai boasts neighbourhoods that cater to your investment preferences. However, it’s crucial to perform comprehensive research, seek advice from real estate experts, and stay vigilant regarding market trends to ensure well-informed decisions. With its dynamic landscape and continuously evolving opportunities, Dubai remains a top destination for real estate investors in 2023–2024.
The Art of Property Gifting in Dubai Posted on October 27, 2023 by badmin In the Emirate of Dubai, first-degree relatives, such as parents, children, and husbands and wives, can transfer property among themselves, constituting a gift transfer. Recent rule changes at the Land Department, however, have prohibited property transfers between siblings. In cases where a property transfer qualifies as a gift transfer, the standard 4% transfer fee, typically paid to the Land Department during the property transfer, is not applicable. Instead, a nominal transfer fee of 0.125% is due at the time of the transfer. This reduced fee significantly simplifies the cost-effective transfer of property between first-degree relatives, eliminating the need to consider substantial cost implications. The process of gifting a property in the Emirate of Dubai is as follows: The owner must pay AED 4,020 to obtain an evaluation report on the property’s price from the land department. The owner and the donee must obtain a No Objection Certificate (NOC) from the property’s developer. Both parties must prove their first-degree relationship by providing an official document issued in their respective home countries. For example, if the owner is the father or mother of the donee, they must provide a birth certificate as evidence of their relationship. This document must be legalised and notarized in their home country and then submitted to the Ministry of Foreign Affairs in the UAE. In addition, the document should be translated into Arabic and receive a stamp of approval from the Ministry of Justice. Once the original documents are in hand, you can complete the property transfer by visiting the Trustee offices. The cost of a gift transfer of property in the Emirate of Dubai includes the following: The minimum gift transfer fee payable to the land department is AED 2000. However, if the property’s value exceeds AED 500,000, the transfer fee payable to the land department is 0.125% of the property’s overall value, based on the evaluation certificate issued by the land department. A fee of AED 580 for the name title deed. A fee of either AED 2,000 or AED 4,000, depending on the property’s evaluation, payable to the trustee offices. Once you have submitted the required documents and paid the associated costs at the trustee office, the trustee office will facilitate the property transfer, resulting in the issuance of a new title deed in the name of the donee. Once the Land Department issues the new title deed, the donee will officially assume ownership of the property. Do I need a Power of Attorney for a gift transfer? A Power of Attorney is not necessary for a gift transfer in the Emirate of Dubai if both the owner and the donee are present during the transfer. However, our partner, Vision Conveyancing, is pleased to offer its services as your Power of Attorney through a special POA to facilitate the entire gift transfer process in the name of the donee. They provide a comprehensive end-to-end service for gift transfers, ensuring a swift and efficient process. VC is committed to delivering a streamlined and stress-free transaction experience for their clients, starting from the initial contract signing and concluding with the property ownership transfer. If you have inquiries, you can reach out to them at info@visionconveyancing.com. Property gifting in Dubai serves as a legal and efficient means of transferring ownership while upholding the city’s tradition of generosity and openness. Dubai, as a thriving global metropolis, continuously draws investors and residents worldwide, making property gifting an exceptional way to embrace the Dubai lifestyle and partake in its prosperity. When contemplating property gifting, it’s crucial to seek guidance from legal experts and real estate professionals. In Dubai, the process of property gifting embodies the principle of “giving is receiving,” enriching both the giver and the recipient.
Winter in Dubai: A Season of Splendor Posted on October 26, 2023October 26, 2023 by badmin When one envisions Dubai, they often conjure images of shimmering skyscrapers, extravagant shopping malls, and scorching desert heat. However, Dubai undergoes a transformation during the winter months, turning into a different kind of wonderland. This season is when the city’s real estate market truly shines, offering a unique opportunity for investors and those seeking a slice of the luxury lifestyle. In this blog, we will explore the captivating charm of winter in Dubai and its undeniable connection to the real estate market. Dubai’s winter, which typically spans from November to March, offers a welcomed reprieve from the scorching summer heat. The weather becomes milder, with pleasant daytime temperatures hovering around 20–25°C (68–77°F), while evenings can get slightly cooler. This ideal climate makes it the perfect time for exploring the city’s numerous attractions and engaging in outdoor activities, such as desert safaris, beach outings, and al fresco dining. One of the highlights of Dubai’s winter is the annual Dubai Shopping Festival (DSF), which typically kicks off in late December and extends into January. This month-long extravaganza features incredible discounts, entertainment events, and spectacular fireworks, effectively transforming the city into a shopper’s paradise. Winter Real Estate Trends in Dubai High Demand for Short-Term Rentals As Dubai experiences an influx of tourists during the winter season, the demand for short-term rentals, including vacation homes and serviced apartments, skyrockets. This offers an excellent opportunity for property owners to capitalise on the winter tourism boom. Whether you’re looking to invest in a luxurious apartment with a view of the city’s iconic landmarks or a cosy villa on the Palm Jumeirah, there’s no shortage of options to cater to this growing market. Ideal Time for Property Showcasing Real estate agents and developers often choose the winter season to showcase their properties. The pleasant weather facilitates hosting open houses and property viewings. Additionally, the festive atmosphere during events like DSF can draw in potential buyers who are in the city to enjoy the festivities and may be enticed to invest in Dubai’s thriving real estate market. Luxury real estate flourishes Dubai is renowned for its luxury real estate offerings, and the winter season only enhances its appeal. International investors often seek premium properties during this time, whether for personal use or as an investment opportunity. The city’s luxury apartments, penthouses, and villas located in upscale neighbourhoods like the Palm Jumeirah, Downtown Dubai, and Emirates Hills continue to attract high-net-worth individuals looking for opulent residences. Off-Plan Investment Opportunities For those with a keen eye for off-plan properties, winter in Dubai can be a great time to explore new developments. Many developers launch attractive payment plans and incentives during the winter season, making it an opportune time to invest in a property that may offer long-term appreciation. Dubai’s winter season undergoes a magical transformation. The pleasant weather and festive atmosphere create an environment in which the real estate market thrives. From the bustling demand for short-term rentals to the allure of luxury properties and enticing off-plan investment opportunities, Dubai’s real estate sector shares a unique connection with the city’s winter charm. If you are considering investing in Dubai’s real estate market, the winter season provides an ideal backdrop to explore the city’s diverse property portfolio. Whether you are seeking a home or an investment opportunity, the convergence of luxury, culture, and opportunities during Dubai’s winter months makes it an exciting and promising destination for real estate enthusiasts.
An Essential Guide for New Tenants: Renting in Dubai Posted on October 23, 2023October 26, 2023 by badmin If you are new to the country and uncertain about how to start your search for your first home, we are here to provide you with a straightforward guide to renting in Dubai. Dubai is an attractive destination for sophisticated career-oriented individuals seeking a lavish lifestyle. The city has a significant expat community, with thousands moving here to pursue their dreams. Dubai offers a wide range of residential properties to cater to its growing population. If you’re new to the area and unsure about finding your first home, we can provide a comprehensive guide to renting in Dubai. What documents do I need to rent a house in Dubai? In order to establish a lease agreement with the landlord and/or real estate agent, the tenant needs to provide identifying documents, which include a copy of their passport, a valid resident visa, and an Emirates ID, along with post-dated cheques for the agreed-upon rent payments. Is it within a landlord’s rights to request bank statements in Dubai? In Dubai, most landlords will demand proof of income from you before renting a property. You must demonstrate a stable income source and your ability to pay the rent. Acceptable documents for proving your income include your employment contract, bank statements, and payslips. How to make a payment if multiple cheques are agreed? To make payments when multiple cheques are agreed upon, tenants typically issue post-dated cheques directly to the landlord. Management companies are prohibited from accepting rental cheques or payments in the company’s name; they must be made in the landlord’s name and before handing them over, request a copy of your landlord’s passport and title deed. What is a security deposit? In Dubai, landlords typically require tenants to pay a security deposit equal to 5% of the annual rent for unfurnished properties and 10% for furnished ones. The tenant pays this security deposit at the start of the tenancy, and it must be returned, either fully or partially, to the tenant upon moving out. How frequently does the rental increase occur? Under the current RERA rental increase law in Dubai, landlords can only initiate a rental price increase three months before the rental contract’s expiry date. Moreover, they can implement an increase if the rental price is at least 22% lower than the average market price of other similar property types in the area. If I need to cancel my tenancy contract before its expiry, do I need to send a notice? If there is no provision in your tenancy agreement for early termination, the landlord and tenant must discuss and agree on it. Otherwise, both parties should honour the contract’s terms. Who is responsible for the maintenance in the property? The landlord must take care of general wear and tear on the property as well as handle major replacements and repairs. The tenant must handle any breakages, minor replacements, and repairs, following the additional terms specified in the tenancy contract. Every tenant in Dubai has the right to reside in a well-maintained home. The law and the contract require the landlord of the rental property to provide a habitable dwelling. If a tenant wishes to make any alterations to the property, they must obtain prior approval from both the landlord and the relevant authorities in Dubai. Unless both parties mutually agree, the tenant is not allowed to remove any leasehold improvements when vacating the rented property. About Eviction: A tenant can face eviction before the expiration of the tenancy contract if they: Fail to pay the rent within 30 days after receiving written notice from the landlord. Illegally sublease the rented property. Engage in illegal or immoral activities within the rented property. Make alterations to the property that endanger its safety. Misuse the rented property by violating planning, construction, or land use regulations in Dubai. Fail to comply with the terms of the contract or the law. Necessitate the demolition or reconstruction of the property. In the case of commercial properties (e.g., offices), the landlord may request eviction if the renter closes business operations for 30 consecutive days or 90 consecutive days without providing valid reasons. Upon the expiration of the tenancy contract, the landlord can request eviction if: The owner intends to demolish the rented property for reconstruction or to make additions that would hinder the tenant’s use of the property. The property’s condition necessitates demolition for rehabilitation. Extensive maintenance or renovation is required. The owner intends to sell the property, use it for personal purposes, or allocate it to first-degree relatives. However, the landlord must furnish the tenant with a 12-month written notice via registered mail or public notary. In the UAE, utilities are usually not included in the rent. One of your responsibilities as a tenant is to register and pay your utility bills in your name, which is fair since you are the one using these services. Typically, these utility services include: Electricity Water Gas (if applicable) Air-conditioning (if the property is not chiller-free) Home internet. Here are some RERA tenancy contract rules for tenants to remember when searching for properties for rent in Dubai: Article 19: The tenant must make rental payments in Dubai on the due date. The tenant cannot perform any maintenance, restoration, or changes to the property unless the landlord permits. Article 21: At the end of the lease agreement, it’s also incumbent upon the tenant to surrender the property in the same condition, except for ordinary wear and tear. Article 22: Unless the landlord and tenant have agreed otherwise, the latter is responsible for paying necessary taxes and fees due to the relevant government departments. Article 23: When vacating the property, the tenant must not remove any improvements made unless otherwise agreed upon between the parties. Armed with the knowledge and insights from this guide, you’re well-prepared to embark on your exciting journey as a tenant in the vibrant city of Dubai. If you have any questions or need further assistance, please don’t hesitate to contact us at 055-394-7515 or via email at hello@theurbannest.ae. We’re here to help!
Dubai Landlords: What You Need to Know Posted on October 22, 2023 by badmin Landlords in Dubai have various rights, including the right to receive rent on time, the ability to evict tenants for non-payment of rent, the option to terminate the contract under specific circumstances, and the authority to access the property for inspections and repairs. Furthermore, tenants must compensate landlords for any damage caused to the property. Dubai has established itself as a global hub for real estate investment and development over the last few decades. The city has witnessed a significant increase in the number of properties, both residential and commercial, resulting in a higher number of landlords. As a landlord in Dubai, it’s crucial to be well-informed about your rights and responsibilities to ensure the proper maintenance of your property and the satisfaction of your tenants. The Dubai Rental Law No. 33 of 2020, which replaced the previous rental law (Dubai Rental Law No. 26 of 2007), came into effect on March 9, 2020. The new tenancy law in Dubai aims to improve the rental market through several changes. These changes require all rental contracts to be registered with the Rental Good Conduct Certificate (RGCC) system, establish rent increase caps for existing tenants, introduce measures to protect tenants’ rights, and create a Rental Dispute Settlement Circuit (RDSC) within the Dubai Courts. The new landlord-tenant law in Dubai has the goal of providing greater transparency, accountability, and protection for both landlords and tenants. What Is a Tenant and Landlord Relationship? In the tenant-landlord relationship, the landlord holds the ownership rights to the property, and the tenant obtains the right to use the property by paying the rental fee for the unit. On top of that, the tenant has the responsibility of maintaining the property, while the landlord is obligated to carry out maintenance as outlined in the agreement. Maintaining a positive relationship is essential for both parties, as it fosters mutual trust, which becomes particularly important in case any issues arise. What is the maintenance law in Dubai? In accordance with Article 16 of Law 26 of 2007, unless otherwise agreed, the landlord is responsible for doing all maintenance on the property. However, the majority of lease agreements in Dubai often state that the tenant is responsible for minor upkeep while the landlord is responsible for any substantial repair. Can Landlord Increase Rent in Dubai After 1 Year? Yes, they can as long as it’s the time for renewal; otherwise according to the tenant rights in Dubai, they can’t increase the rent during the lease period. What Is the Rent Increase Notice Period in Dubai? The landlord must notify the tenant within 90 days before the expiration of the contract. This is the minimum notice period, according to the Dubai Tenancy Law, unless the two parties agree on other terms. Things to check in a rent increase: Whether your proposed rent increase is within the bounds of RERA’s rental increase calculator If your community is not listed in the rental increase calculator, then the regular rules of rental increases in Dubai do not apply. In this instance, you and your tenant will have to agree on what you feel is a fair price. If your community is listed in the rental increase calculator, but you believe one or both of the above-mentioned requirements have not been met, your tenant can contest your notice. When Is the Rental Increase by the Landlord Permitted? Under the Dubai Rental Price Index, landlords may adhere to the following framework for rental increases: No increase is permitted when the rent increase calculator shows the current rent paid is within the stipulated range A 5% rent increase is permitted when the rent falls between 11–20% less than the average for the location A 10% rent increase is permitted when the rent falls between 21–30% less than the average for the location A 15% rent increase is permitted when the rent falls between 31–40% less than the average for the location; A 20% rent increase is permitted when the rent is less than 40% of the average for the location. Is the Landlord Allowed to Enter the Property in the Tenant’s Absence? No, the landlord is not allowed to enter the unit during the renter’s absence or without their permission unless they agree on this and it’s included in the contract. This is according to tenant rights in Dubai. Moreover, if the landlord wants to sell the property, they should ask for the tenant’s consent to be able to show the property to potential buyers. When the tenant permits viewings, the landlord must provide at least 24 hours’ notice and must be present at the time of viewing. Can the landlord evict a tenant prior to the end of a tenancy agreement? Article 25 of Law No. 26 of 2007 states that there are only a few very specific reasons why a landlord can evict a tenant prior to the end of a tenancy agreement. These include: The tenant fails to pay rent within 3 days of being served a written notice from the landlord The tenant subleases the property without the landlord’s approval The tenant uses the property for any other purpose than what it was leased for The property is used for immoral or illegal activities The tenant causes damage or makes unsafe changes to the property The tenant fails to comply with the terms of the tenancy or the law If demolition of the property is required by the government for urban development Unless one of the above conditions is met, you cannot be evicted during the tenancy. The landlord can seek to evict the tenant for one of the following reasons: The landlord wishes to reconstruct or demolish the property Major maintenance or renovation is required, which cannot be done whilst the tenant is living there The landlord wants to sell the property The landlord wants to either live in the property or have one of their first-degree relatives live there But, in all of the above examples, 12 months of written notice must be provided. Here are some top tips for landlords in Dubai: 1. Hiring a competent property manager is considered essential by experienced landlords to maximise the value of their rental properties. This approach not only helps in avoiding all the headaches associated with vetting tenants, collecting rent, handling complaints, and addressing maintenance and repair requests, 2. Maintain a Respectful Relationship with Tenants. If you opt to lease your property without a property manager, make an effort to maintain a positive relationship with your tenant. When mutual respect exists, your tenant is more likely to take better care of your property, which ultimately benefits your long-term investment. 3. Familiarise yourself with the Law. Before considering rent increases or wanting to evict a problematic tenant, take a moment. Landlords have both rights and responsibilities to adhere to under Dubai law. As a landlord, comprehending your obligations will assist in safeguarding yourself and your rental property. 4. Ensure clarity in the contract. Make sure the tenancy contract is clear. For instance, it should outline the maintenance and repair requests for which you are accountable. If you believe the tenant is requesting maintenance beyond your obligations, direct them back to the contract. 5. Initiate a Rental Dispute Case if necessary. If you have explored all available options, including discussions with your tenant to resolve any arising issues, contemplate initiating a case. The Rental Dispute Centre serves both landlords and tenants with the ultimate aim of reaching a resolution for both parties. Various laws and regulations in Dubai, including Dubai tenancy law, protect the rights of landlords. As a landlord, it is essential to comprehend your rights and obligations to establish a smooth and lawful tenancy agreement with your tenants. Among the significant rights of landlords in the UAE are the right to evict tenants for breaching the contract, the right to receive rent promptly, and the right to terminate a tenancy agreement for valid reasons.
Dubai Real Estate: Your Key to Property Ownership Posted on October 21, 2023October 21, 2023 by badmin Dubai’s property market is dynamic and alluring, offering unique opportunities. Whether you’re an investor, a future homeowner, or here for market insights, we’re here to guide you on your journey to property ownership in this vibrant city. Are there any restrictions for foreigners when buying property in Dubai, and if not, what are the required documents for a property purchase? Anyone, regardless of nationality, can purchase property in Dubai within designated freehold and leasehold developments. Properties can be acquired through primary sales from developers or in the secondary resale market. To buy a property in the UAE, you’ll need to secure the following documents: A copy of the sale and purchase contract A copy of a valid Emirates ID A copy of a valid passport for non-residents What is freehold and leasehold? Freehold ownership in Dubai grants buyers absolute control over both the property and the land it stands on, without time restrictions. As per Dubai’s property ownership laws, the Dubai Land Department registers the buyer’s name as the ‘landowner’ in the official registry and issues a title deed. Freehold property owners have the freedom to remodel or renovate their units, provided they adhere to developer guidelines. Freehold properties are the top choice for foreign buyers and investors in Dubai, with options in prominent neighborhoods like Dubai Marina, Downtown Dubai, JBR, The Meadows, and The Springs. Recently, even traditionally non-freehold areas, like Jumeirah, have seen the growth of freehold projects such as City Walk and La Mer, broadening choices for foreign nationals. Leasehold property in Dubai means buying the right to occupy a unit for a fixed period, often 99 years or less, without ownership of the land. Repairs, especially for the property’s structure, are usually the responsibility of the freehold owner, leaving the leaseholder with limited liability. Is the reservation fee refundable? The reservation fee is non-refundable. What occurs when the property I’ve purchased already has a tenant in place? When you purchase a property with an existing tenant, you inherit both the tenant and the terms of the tenancy agreement. A prorated rent-back amount can be determined as part of the sales contract, and all future rental checks should be made in your name as the new owner. Furthermore, as the new property owner, you must ensure the transfer of the security deposit previously paid by the tenant to the former landlord (seller), making it your responsibility to refund the deposit to the tenant upon their departure. Subsequently, it becomes your responsibility to refund the deposit to the tenant upon their departure. Are properties in Dubai subject to VAT? No, VAT is not applicable to residential properties in the UAE. Do I need to fly to Dubai to finish the purchase? If you cannot be physically present in Dubai, you have the option to use a Power of Attorney (POA) to purchase property on your behalf. This can be arranged either in person at Dubai Courts, internationally, or remotely online, all from the convenience of your home. What are the anticipated costs associated with buying a property in Dubai? In addition to the purchase price, there are several fees that clients are obligated to pay. These costs are not hidden, as they are typically discussed during the property purchase process. In total, these fees can amount to approximately seven percent of the property’s total value. Therefore, they should not be disregarded but rather factored into the overall property acquisition expenses. Some of these are, but are not limited to: • Transfer fees, four percent of the purchase price • DLD appointment fee of Dh4,200 and Dh580 admin fee • Professional/ Agency fee of two percent plus VAT and Conveyancing Fees. • Other additional fees, depending on if you are purchasing with finance, will be stipulated in the contract. Can I get a residency visa if I purchase a property in Dubai? Purchasing real estate in Dubai can potentially qualify the buyer for a residence permit. Under the UAE investor visa program, the property must be fully constructed at the time of purchase and have a minimum value of AED 1 million. The visa duration can range from three to five years and remains valid as long as the investor holds property in the country. A three-year visa is granted to those who purchase property valued at AED 1 million or more, while a five-year visa is available for property owners with holdings worth at least AED 5 million. The property owner has the option to sponsor additional family members, including domestic staff such as maids and drivers. However, it’s important to note that this visa does not grant permission to work in Dubai. We hope this information has provided valuable insights and guidance for your property-buying journey in Dubai. The Dubai real estate market is filled with opportunities, and with the right knowledge and support, you can make the best investment decisions. Should you have any further questions or need assistance, don’t hesitate to reach out. Best of luck on your path to property ownership in this vibrant city!
Frequently Asked Questions About Selling Your Property in Dubai Posted on October 21, 2023 by badmin Selling a property can be a source of considerable stress, but our aim is to ensure that your selling experience is as smooth and hassle-free as possible. It’s important to note that not all costs and processes will necessarily apply to you, particularly if you are selling a property without any outstanding financial obligations. Documents Needed When Selling a Property: To sell your property, you will require a title deed for the property obtained through registration at the Dubai Land Department. You will also need a No Objection Certificate (NOC) from the developer to confirm that the property is free from any liabilities, such as outstanding mortgages, unpaid installments, or service fees. Your original passport and any other documents and receipts related to the original sale and the current state of the property will be required. If your property is rented, you will need a copy of your tenancy agreement, and if you have sold it through a registered Real Estate Agency, a signed seller agreement known as Form A will be needed. Is it necessary to hire a lawyer when selling my property? In many places around the world, it’s common to involve a lawyer when selling property. However, in Dubai, the sale process often doesn’t require legal representation. Dubai uses a standard electronic contract, known as Form F or MOU, provided by the government. The transaction agency typically oversees the management of these documents. You do have the choice to hire a lawyer or conveyancing company if you prefer Can I sell my property if it is currently tenanted? If so, what is the notice period required if I want the tenants to vacate the premises? Having an active tenancy contract on your property does not prevent you from selling it. When selling, you will typically include a provision in the agreement with the buyer to transfer the existing tenancy to them. The buyer will inherit the terms of the tenancy and take over as the new landlord. You may need to consider refunding any future rent for the remaining lease period and transferring the tenant’s security deposit to the buyer. As per Law 33 of 2008, Article 25, a landlord can request eviction upon the expiration of the tenancy contract if the property owner intends to sell the leased unit. However, the landlord is required to provide the tenant with a 12-month notice before the designated eviction date, and this notice must be delivered through a notary public or registered mail. What is the cost of registering my title deed? In the case of off-plan sales, the developer manages the land registration process in tandem with the initial property purchase. The registration fees amount to 4% of the purchase price, and this cost is VAT-exempt. In the case of secondary sales, the 4% fee, referred to as the transfer fee, is payable during the transfer of ownership and can be divided between two parties: the seller and the buyer. Whether you’re a seasoned property seller or a first-time seller in Dubai, manoeuvring the real estate market can be a complex yet rewarding journey. We believe that the insights and information shared in this blog have proven valuable in your mission to sell your property. Should you have any additional questions or require assistance, our team is readily available to support you at every stage. Your property sale in Dubai is more than just a transaction; it represents a significant milestone in your life’s journey, and we are here to ensure it proceeds smoothly and successfully. We appreciate your consideration in choosing us as your trusted partner and extend our heartfelt wishes for your success in your property-selling endeavours.
