Will the property be Freehold?
Most of the developments are offering freehold Dubai properties and your contract confirms this. A new law on march 12 2006 confirmed that foreign purchasers have the right to own freehold title to real estate in certain parts of Dubai and has significantly boosted both the amount of property for sale in Dubai and also the demand for it.  It is understood that the freehold title announced by H.H. General Sheikh Mohammed bin Rashid Al Maktoum in 2002 shall be freehold as is understood in the international sense - where the owner is considered to have absolute rights to the property. Not all developments are Freehold, ie DubaiLand is Leasehold on a 99 year renewable basis.



Can I get a residency visa when I purchase a Dubai property?
It is possible to apply for a residency visa when you purchase a property, where it is being offered on the specific development.  Not all developments offer resident visas.

All visas are sponsored by the property developer and are renewable every 3 years at a fee. You are only able to get a visa for the family if the Dubai 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 get a visa for a single person or couple. These visas will only enable you to reside in Dubai, not work here.

What is the rental yield I can expect?
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 Dubai property to either rent or to buy to live in and many developments will not be available to live in until the end of 2006. The current building programme is only expected to meet current demand. However, over 50 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.

Are there inheritance issues in Dubai about property?
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 notarized 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 to your own lawyer and a local UAE based lawyer on purchasing your property.  


I have heard I need a local sponsor to buy property in Dubai, is this true?
No, not any more, most properties are now freehold to make the market more attractive. It will say in your contract whether or not the property is freehold or leasehold.


What taxes will I have to pay?
Dubai has no taxes of any kind when purchasing a property in the emirate. Dubai also benefits from no business taxes, except in the banking industry.