Buying property in Dubai is probably the simplest procedure of anywhere in the world. In May 2002 Dubai's rulers issued a decree that foreigners were legally entitled to own freehold property and that purchasers of property receive a free residents visa for 3 years which is the easily renewable upon receipt of 5000 Dhs. Most importantly for investors, Dubai simply has no taxes of any kind for both onshore and offshore activities. Dubai is not a 'tax haven', but a country with no taxes of any kind, or indeed a tax department.

1. Buying a property is probably the largest investment most people will make and its best to have your finances in order. Property mania has certainly hit Dubai and with new developments launched almost every week. If you are considering buying property whether in Dubai or abroad, there are number of factors, which you should consider.
2. Long-term residents should be considering buying to replace rental payments. Even if your home is worth a fraction of what you paid for it after 10 years, this would still be a huge improvement on the negative return of renting.
3. Second, property prices look cheap by international standards, and rental yields are still high.
4. There is a big change in the city's geography underway. What is the fringe of Dubai today, the Dubai Marina, will be uptown Dubai of tomorrow. Thus property values will follow this curve upwards, as people relocate to the new uptown.
5. Legally, there is no law to prevent freehold purchase in Dubai, and a new federal law should shortly frame legal rights into a form acceptable to international banks for mortgages; this will push demand and prices higher.
6. Oversupply is the main fear highlighted by skeptics. But there can only be so many properties in prime locations, and the time to buy is now.
7. Demand for freehold property in Dubai is much higher than most people can comprehend. Certainly an economy growing at 10% plus a year has a dynamic of its own that reflects a huge demand for accommodation.
8. Any property market is going to have its ups and downs, and Dubai will be no different.
9. Those who wait for bargains. In 1998 some thought rental prices would collapse. It did not happen.
10. Comparatively property is cheap. Dubai villas cost around $1,000 per square meter. London, at the other end of sells apartments in London
11. Docklands at $5,000 per square meter.
12. Dubai is in the process of creating an international property market from scratch. As a result buyers are being be given an exceptionally good deal to encourage them to be pioneers.
13. As the second-hand market emerges, and the legal position of owners becomes absolutely clear, the element of risk will go, and lower risk will mean higher property prices.
14. Dubai is a city where a lot of people earn high tax-free salaries and are in a position to support higher house prices. This is a city with a
15. 20-year track record of strong economic growth and will continue to attract foreign and regional inward investment
16. Buying property in Dubai is open to all and has proved to be very lucrative for both homebuyers and investors. With very little government interference and no tax on any property transactions, the property market has attracted buyers from all around the world.

Buying properties in outside Dubai, such as Abu Dhabi, Sharjah, Ras Al Khaimah and Ajman has similar process and procedures. However laws within your property contract may vary and differ from various developments.

1. The Palm Jebel Ali
2. The Palm Jumeirah
3. Palm Deira
4. The World
5. Dubai Waterfront
6. Dubai Land
7. Dubai Marina
8. Dubai International Financial Centre (DIFC)
9. Dubai Investment City
10. Dubai Lagoon
11. International City
12. Dubai Pearl
13. Discovery Gardens
14. Burj Dubai
15. Downtown
16. Jumeirah Islands
17. Jumeirah Village
18. Business Bay
19. The Greeens
20. The Springs
21. Parklands
22. The Meadows
23. Silicon Oases
24. Arabian Ranches
25. Jumeirah Lake Tower
26. Emirates Hills
27. International Media Production Zone (IMPZ)
28. Jumeirah Beach Residence

Buying properties in Dubai, Sharjah, Ras Al Kahimah are very straightforward process and do not require any special arrangements such as hiring a solicitor/lawyer/advocate. However, such services do exist in UAE who ensure that your property purchases are safeguarded. Typically most countries that use Common Law require a lawyer to represent each party or a public official in Civil Law jurisdictions. In Dubai and other states of UAE you can buy straight from the developer "off-plan". When off-plan property, once you have transferred your payment(s), fax your transfer sheet to developer, who will then issue a receipt for payments made as soon as money has entered into the Bank account. The receipt can either be faxed, e-mailed or courier. You then receive a purchase contract via courier post and this is where you will need to complete the required documents and return one copy of the contract back to you, which you will need to keep. When buying properties from Emaar or Nakheel who are the master developers of Dubai Real Estate, you would be required to attest you signature on the property purchase documents. Please contact your local lawyer/solicitor/advocate who will assist you in completing this process, which will enable to safeguard your purchase. Payment plans vary from project to project and these have been specified under each project currently selling. However, most projects require a 10% booking fee and the balance spread between the booking date and the completion of the project. With bookings taking place around the world for UAE projects, availability changes by the minute. However, as an appointed agent for many UAE property projects we have access to their properties uploaded onto their online booking system and can advise on availability immediately on request. Property purchases in Abu Dhabi are only available for UAE nationals. Abu Dhabi Government has not yet decided when it will allow foreign ownership.

As property market expands in Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, prices increase across the board, even when buying directly from developer. Some buyers prefer to look around and sometime choose to buy on the resale market or private vendor. In order to buy a property from resale market requires the buyer and seller to agree with developer rules, which forms consent between two parties. When buying from resale market, the buyer would be required to:

1. Negotiate a price and fix a price for purchase
2. The seller or vendor would need to complete a "no objection letter"
3. The buyer would need to transfer the money for purchase into a client holding Bank account with the agent
4. The agent would then complete the processes required with the developer in order to transfer apartment holding title from the seller to the buyer
5. In some cases the seller would receive a "no objections certificate" as proof title transfer to the new holder.
The buyer should note that the when purchasing a resale property, he/she would be required to pay for title transfer which is normally 2% to 7% depending on developer rules.

1. There are many reasons why not only UK nationals, but all nationalities, are purchasing property in Dubai.
2. Dubai Financial
3. Dubai property prices are low compared to those in the UK and popular European countries where markets    are at all time highs
4. There is no income tax or capital gains tax applied in Dubai on rent or resale
5. There is no stamp duty, legal fees or survey costs involved in buying freehold property in Dubai - apart from a 1.5% land registry fee on completion
6. Property has only recently been open for purchase by non UAE Nationals and therefore many investors view there to be a huge potential for growth in the Dubai property market
7. With the current level of exchange rate, the value for money in Dubai compared to many other global property prices is second to none.
8. Rental income from Dubai property is currently yielding around 8-10%
9. Capital growth is likely to average in excess of 15% per annum
10. Residence Visa is received with the purchase of each property
11. Properties in Dubai are all finished to a very high standard
12. Many UAE developments offer free or discounted access to superb facilities ranging from swimming pools, golf courses and equestrian centres to health clubs and spas. A large number also include on-site bars, restaurants and supermarkets.
13. 100% freehold ownership with many of the Dubai developments

Freehold Properties are that which has 100% ownership and your rights over your property do not expire. The developer and which in effect is similar to freehold title ownership sponsor properties, which are leasehold and are in Dubai. In Autumn 2005, Dubai Government should issue a decree, which will activate the complete freehold 100% basically this would mean that buyers will be entitled to independent owners of freehold properties and not via developer. Once this has happened, it predicted that Dubai would see another real estate boom and this time on a large scale.

Currently there is no registration of title being carried out by developers in Dubai yet with the Land Registry. Instead, the property is registered to the purchaser. Once the new land legislation becomes law, then it is expected that the land department will be empowered to register land titles in favour of foreigners for a registration fee of 2% of the purchase price, or valuation, whichever is the higher - usually paid 0.5% by the vendor and 1.5% by the buyer. The Land Registry has now been established, and employees have been hired and allocated to developments in order to cope with the title demands when developments complete.

It is possible to apply for a residency visa when you purchase a property. All visas are sponsored by the property developer and are renewable every 3 years at a cost of approximately 5000AED. You are only entitled to a residency visa for the family if the property, which you are purchasing, is big enough to house the family comfortably. i.e. 2 bedrooms will only be for adult and 2 children maximum, studio flat will only allow 2 persons visa as maximum. These visas will only enable you to reside in Dubai, not to do business (you would require a licence/permit), or work (require a work visa). Laws in Abu Dhabi, Ras al Khaimah, Sharjah etc will vary in some visa laws.

Maintenance fees for apartments range from 4AED up to 15AED per sq ft of your apartment per annum/yearly. This will be advised to you at the time of purchase. They tend to be fixed for 3 years after which a Residents Association is formed.

Currently in Dubai there is a healthy rental market especially to foreigners and rental yields are between 12-15%, depending on the location. Obviously, in time, with all the apartments, which will be available to rent, and as capital values rise, yields may drop to somewhere nearer 10-12%. It is worth bearing in mind that currently there is a shortage of property to either rent or to buy to live in and many developments will not be available to live in until the end of 2005. The current building programme is only expected to meet current demand. However, 20 companies a day open up in Dubai and it is anticipated that the population will double by 2010, which will keep demand high for many years to come.

There is no suggestion of Dubai becoming a completely open market to foreigners in order to protect local nationals. Restricting foreign ownership of property is by no means unique; many of other countries worldwide have such restrictive practices and, by these standards, Dubai has an open market. Yet, you should be aware that Dubai restricts foreign property ownership by identifying certain geographical areas in which inward foreign investment may be permitted. This has the effect of restricting the development of land that can be purchased by foreigners to certain areas, and the limited supply actually available to the developers is likely to continue to cause prices to rise. After all, 85% of the population of Dubai are foreigners. Abu Dhabi has now come into the real estate market and started to developer on of the first phases of Al Raha Gardens, which is believed to have major sell outs within hours. Currently, in Abu Dhabi, only nationals have the right to own a property within the new developments and soon and hopefully will allow foreigners to buy properties in freehold title of ownership.

Few people realise that whenever they purchase property outside their original country of residence where they are most likely to have a will that the property in the country in which they have purchased, is covered only by local laws. Dubai is no different, and the inheritance of property in the UAE is covered under Shariah Law. This stipulates that in the event of a 'mans' death, property would pass automatically to the eldest son in the family and not necessarily the mans' spouse, even if the property is jointly owned by husband and wife. Advice from a variety of locally based law firms produces different recommendations, including putting in place a local will in the UAE if you are a resident, or adding a codicil as a supplement to your existing overseas will indicating that any assets you own in the UAE should be covered by laws of the will in the jurisdiction in which it was originally written. Some solicitors have also advised that this will and codicil should then be notarised by the UAE Embassy in the country in which the will was written, in the event that an inheritance dispute ends up in the law courts of Dubai. Another option is purchasing the property through an offshore or service company in order that the shares of that company may be gifted to your chosen beneficiaries under the terms of your will. In any event, we strongly advise that you talk your own lawyer and a local UAE based lawyer (who we can introduce you to) on purchasing your property.

We can introduce you to companies that can assist you in arranging finance in Dubai. Most of the bank's offer 70% 'loan to original developer sale price' mortgages and the rates tend to range from 6 - 8%. The approval of the loan is dependant on the project your earnings. Normally banks will lend on "approved" projects. Those are ones that they have reviewed and signed an agreement with the developer to lend finance on. Not all projects will be "approved". If the project were approved, then you would contact the relevant bank/finance company to arrange finance. If the project is not approved you may need to approach various banks to see if they will give you finance. If your ability to pay the on-going instalments is based on the finance being given, then we strongly advise that you obtain finance prior to committing yourself to any project, as most deposits are non-refundable. There are literally thousands of mortgage options. In the United Arab Emirates, however, the choice of lenders is not as widespread and the options not as attractive as those found internationally. At present, typically you can borrow at 6.5% in Dirhams for the various property developments that are regularly advertised in the local press. Banks based overseas cannot provide lending facilities on UAE properties directly so one is confined to the locally established lenders. This situation should change in the near future. Finance can be arranged through overseas lenders if you have assets overseas too. A number of property investors with assets overseas have taken advantage of favorable international interest rates. For example, someone with property in the UK may be able to release equity to a maximum of 80% of the value of their property (less any outstanding mortgage) to finance all or part of their property purchase in Dubai. One should be aware of the additional costs for arranging finance. Your bank may levy a fee and once again international lenders tend to offer very competitive terms. Valuation fees, Brokers Costs, Protection fees, legal/conveyance and in some cases planning permission can all add to the costs. If you do not have overseas property to obtain finance then another form of collateral could be an investment portfolio, which could be used as security to obtain a loan. If you do not have assets elsewhere then your options are limited to those offered by the lending terms of the local banks of the UAE. Once you have decided on the property you require there are going to be a number of issues that need addressing. Here are just a few to run through:

1. Can you afford it? More importantly are you prepared for the property to go down in value as well as up? Property is just like any other investment and can fluctuate according to the overall market.
2. How long you are going to hold the property will determine whether you can be sure it will make money or not.
3. Can you afford it if the interest payments change? Lenders can alter the interest rate or the term potentially and this could have an impact on your monthly payments.
4. Check if you can pay off the loan early and if so are there any penalties in doing so? Can you change lenders at a later stage? What currency do you require?
5. Can you afford the transaction costs? Typically local lenders are charging 1% of the loan value as a processing fee not to mention the insurance element too. Have you budgeted for legal, protection and any other conveyance type cost.
6. What are the ongoing maintenance costs of your property and the communal areas and are they due to rise - if so by what amount? Who controls the rise in maintenance fees - developer or the residents?
7. Do you need to purchase through an offshore company or Trust? Property law in Dubai is based under Sharia principles and as such in the event of the demise of your husband; the property may bypass the wife as the new legal owner.
8. Can you sell the property on without restrictions? Similarly, you may wish to mitigate your death tax exposure by using some form of offshore structure. Buying property in Dubai will not avoid death taxes from your home country unless correctly structured.
9. Have you sought professional help with protecting the property should a serious event occur? Life Cover, Income Protection, Critical Illness Cover, Permanent & Total Disability in their various forms should reviewed and budgeted for. Seek the professional services of a good agent who is willing to spend time understanding your profile so the right properties are selected for you. Likewise, take guidance from a lawyer if buying locally and employ a suitable conveyance group when buying overseas. And finally, secure sound financial advice from an independent source.

Yes, there are codes of standards applied by the Dubai Municipality regarding building permits and contractual clauses. The developer will have to maintain the standards as stipulated in the regulations issued with regards to building construction, and also safety issues. In the event of a problem, assistance can be found from the contract entered into with the developer. This may contain building covenants, which often provide a guarantee of workmanship of 10 years. There is also the civil code of the UAE that contains protection regarding building standards. With the increasing numbers of buyers and investors in Dubai there is skepticism over the legalities in buying property in the region. However, statements from the Dubai Chamber of Commerce Director-General Abdul Rahman G. Al Mutaiwee, have gone a long way to reassure buyers of freehold property in Dubai that what they are doing at least secures their rights. At present there is no federal property law in the UAE, so freehold cannot be held to be illegal, but neither is it explicitly legal. As Mr. Al Mutaiwee said, 'We do need a law to formalized expatriate freehold ownership of properties'. The Federal Government is currently working on the property ownership law'. For current buyers, he added: 'A fair contract between a property seller and buyer would ensure the rights and privileges of the expatriates owning freehold properties in Dubai. If anyone has any doubts about his rights, he should carefully study the contract'. The Emaar Properties sale agreement promises 'a clear and unencumbered freehold title to the Lot to the Purchaser, subject only to instruments, easements, rights of way, covenants or agreements with or in favor of a government authority.' Effectively there is a declaration from the Dubai Government that it will safeguard the freehold rights of buyers until the federal law is passed. And it should be noted that a federal law couldn't be passed without the agreement of the Dubai Government. So do buyers have any reason to worry about the present absence of a federal property law? Should they wait-and-see as some lawyers advise? In truth if you intend to buy in Dubai then you should be aware that nothing is going to change the fact that buying in the Middle East carries different risks to some alternative locations. However, Dubai has a long tradition of upholding property rights and has no history of arbitrary confiscation of property. As a trading center Dubai recognizes the inviolability of private property, and the only real reason for foreigners not to buy property is if they think that is going to change. That seems highly unlikely.

Most lenders will require some form of protection for the loan. Banks on the whole do not like repossessing property and would prefer the loan to be repaid from an insurance policy should a serious event occur. Similarly, if you had to sell the property to pay the loan in the absence of a policy, the value of the property may have fallen to a level below the outstanding loan amount. With critical illness affecting 1 in 4 of us at some stage in our life, many lenders will require that you have sufficient protection to cover the amount of loan you have secured. Seeking the right insurance is key since it comes in many forms. Get the right advice to determine which one is right for you. Remember, if your loved one passes away unfortunately the bills do not go with them - avoid the financial trauma and have yourself correctly protected.