Thanks to numerous investments made in the luxury tourism and new technology sectors, Dubai is now one of the preferred destinations for expatriates from all over the world.
If you wish to buy an apartment or a house in this emirate, discover this guide to the real estate market in Dubai.
You will find the essential steps to become a homeowner as well as the average selling prices according to the type of property.
The Price of Real Estate in Dubai
Dubai is a city known worldwide for its luxury tourism and excess.
Although this reputation is well deserved, the price per square meter of housing in Dubai is lower than in most major European cities.
Thanks to a growing demand year after year, it is possible to find many new properties for sale for all budgets.
What is the purchase price of an apartment in Dubai?
The purchase price of an apartment in Dubai varies depending on the location, the surface area, the degree of finishing and the services available within the condominium.
The average price per square meter for an apartment is approximately €3,000.
Here is a summary table of the average selling prices for real estate in Dubai:
|Type of accomodation||Average selling price in euros|
|Studio apartment||Between 80 000 and 180 000 €|
|Two-room apartment||Between 150 000 and 250 000 €|
|Two-bedroom apartment||Between 250 000 and 400 000 €|
What is the purchase price of a house in Dubai?
If you need a larger home with at least three bedrooms, it is better to buy a house than an apartment. Apartments with at least three bedrooms are rare and usually very expensive in Dubai.
The average price per square meter for a villa is about €2,500.
You can find four-bedroom villas in a very decent neighborhood for €400,000.
Naturally, selling prices are higher in the emirate’s most desirable residential areas, with villas reaching up to several million euros.
What are the Steps to Buy a Property in Dubai?
All foreigners holding a valid passport are entitled to buy freehold property in Dubai.
The acquisition process is relatively simple and quick when the various steps detailed below are followed.
Contact a local real estate agent
The first step is to contact a local real estate agent. Although it is not a mandatory step, it is highly recommended to work with an experienced real estate professional.
They have the advantage of being familiar with the market, the available offers, and the laws in Dubai.
In order to obtain offers that match your expectations, you must provide the following information
- Your budget
- The reason for the purchase (residential, rental investment, etc.)
- The desired location (near the sea, downtown, suburbs, etc.)
- The type of property (house or apartment, number of bedrooms, living area, etc.)
The visit of the properties on-site or at a distance
Once you have received a selection of properties corresponding to your criteria, it is interesting to schedule on-site visits.
Make a first sorting of the proposals received from a distance in order to be sure to have enough time for the visits during your stay in Dubai.
The signing of the sales agreement
When you have found the property that suits you, you must send an offer to purchase to the owner.
If your offer is accepted, the real estate agent will draw up an MoU (Memorandum of Understanding).
This is a document that contains the following information:
- The sale price
- The identity of the buyer and the seller
- The real estate agent’s commission
- The date of the final transaction
- The description of the property.
The selling owner is legally required to provide the “Non-Objection Certificate”. This is a document certifying that he is the owner and has the right to sell the property.
A deposit of 10% of the sale price is usually required at the time of signing the MoU.
Opening a bank account
All foreign buyers are required to have a bank account in Dubai in order to finalize the real estate transaction.
Opening a bank account is very simple and quick. But you need to send your last six original bank statements, certified by your bank in your country of origin, to complete the opening of your account.
Transfer of ownership
After transferring the funds to your bank account in Dubai and once all the documents are collected, the real estate agent will schedule an appointment at the Land Department. This is the government institution in charge of property transfers.
The official documents to finalize the property transfer are signed by the seller and the buyer at the Land Department. The acquisition fee is approximately 4-5% of the purchase price of the property.
Note that real estate transactions are quite fast in Dubai. The average time for a transaction after the signing of the sales agreement is about 15 days.
Reasons to Invest in the Current Real Estate Market in Dubai
Many investors choose to acquire real estate in Dubai in order to make their capital grow.
The emirate offers a multitude of advantages for investors:
- No tax payment on rents
- Affordable luxury apartments and houses with many amenities included (restaurant, pool, gym, security service, etc.)
- High rental yields
- Simple and fast procedures
- Very dynamic real estate market
Buying a property in Dubai to live in or as a rental investment is a solution accessible to all.
The simplified administrative procedures and the particularly affordable prices make Dubai an ideal place to buy an apartment or a house.