Remote real estate transaction in the UAE

Today, you can buy property in Dubai both by visiting the country and remotely. This significantly enhances the attractiveness of the local market among foreign investors who consider housing in the Emirates as a lucrative asset for passive income. The average ROI of flats and villas in Dubai varies from 5% to 8% per year.

Many investors acquire housing remotely and then rent it out through a property management company. In this case, it is not necessary to come to the UAE and handle the documentation process independently.

Content:

• Introduction to the real estate market in the UAE
• 5 reasons to buy an apartment in the Emirates
• Basics of remote transactions
• Choosing Real Estate Remotely
• Legal Aspects of the Transaction
• Remote Buying Process
• Financial Aspects of the Transaction
• Risks and How to Minimize Them
• After-Sales Services
• Conclusion

Introduction to the real estate market in the UAE

Throughout 2023, the real estate market in the UAE demonstrated stable growth. The most noticeable positive trends were observed in Dubai and Abu Dhabi.

According to the Dubai Land Department (DLD), during the first 9 months of 2023, there were 116,116 new real estate sales in the emirate, totaling $117 billion. The number of purchases increased by 33.8% over the year.

In Abu Dhabi, during H1 2023, there were 10,577 home sales with a total value of $12.6 billion. This represented a 41% increase in the number of transactions over the year.

In Q3 2023, average prices of villas and apartments in Dubai increased by 18.9% and 19.7%, respectively.

The increased demand for housing among affluent foreigners and investors, seeking to profit from their investments, contributes to rising prices and an increased number of transactions.

The UAE government actively attracts foreign investments by offering golden visas for buying flats and villas, favourable conditions for running a business with minimal taxes, and a comfortable environment for relocation.

5 reasons to buy an apartment in the Emirates

There are 5 key reasons that make buying an apartment in Dubai a great solution for foreigners:

1. A steadily growing economy, ensuring investment reliability.
2. Annual growth in home prices.
3. The opportunity to buy real estate for private ownership in freehold areas.
4. The right to obtain a 2-year residency visa upon purchasing a home in Dubai for a minimum of $204,000.
5. No annual property ownership tax for individuals.

Basics of remote transactions

In 2020, the DLD officially allowed online real estate purchases in Dubai, as the majority of transactions involve foreigners. In Q3 2023, flats and villas in the emirate were most commonly bought by nationals of India, the United Kingdom, Lebanon, Egypt, and Russia.

An online sale can be conducted through an agency or directly with the developer. In the first case, a real estate agent assists in finding a housing option that meets the client's requirements and goals and prepares the necessary paperwork.

Buying real estate in Dubai remotely directly from the developer typically is a common option for off-plan projects. The sales contract is executed online. The developer prepares the contract in two copies, which are then authenticated by the DLD. Subsequently, the buyer receives their copy of the contract by mail and makes the down payment. The DLD emails the ownership certificate for the apartment or house in the under-construction complex to the buyer.

Upon completion of the project, the buyer usually inspects the finished unit and signs the handover report. This procedure can be conducted either in person or through an intermediary. In the latter case, a power of attorney must be arranged, and such services are provided by real estate agencies.

Choosing Real Estate Remotely

The first step in selecting real estate property in Dubai online is determining the type of home. The market offers:

• Residential properties: villas, townhouses, studios, apartments, penthouses, duplexes. You can find both new and resale options. Foreigners are advised to choose areas with freehold status.
• Commercial real estate: warehouses, offices, spaces for retail stores, restaurants, and other types of businesses.
• Hotel rooms that can be rented out through a management company. In this case, the investor receives income after deducting the hotel brand's fees.

Next, a more detailed search begins. This can be done using our website, which offers a wide range of listings from various developers and real estate agents. You can compare prices in your preferred currency, examine technical specifications, location, payment terms, and based on this information select one or several options. Afterward, you can utilize the services of an agent who will conduct housing viewings.

If you plan to acquire an off-plan option, it is essential to carefully review the developer's offer, which includes details such as the home's size, type of finishing, furniture, and other aspects. Typically, most projects have brochures with images of future flats or villas, floor plans, descriptions of amenities within the complex.

Legal Aspects of the Transaction

The following documents are processed during the online real estate sale in the UAE:

• Sales and Purchase Agreement (SPA) – for the primary market. It contains all essential terms of the transaction: technical specifications of the housing unit, price, a payment plan (in case of installment purchases), terms of ownership transfer.
• Memorandum of Understanding (MOU), or Form F – a document required for secondary market purchases. It includes all information about the housing, parties involved, and transaction deadlines.
• No Objection Certificate (NOC) – a certificate from the developer confirming no objections to the transfer of ownership rights. In the case of secondary market transactions, this document certifies that the unit being sold has no legal issues or outstanding utility payments.
• Title Deed – the primary proof of ownership rights. Based on this document, housing can be sold, leased, or inherited. If the purchase is financed through a loan, the original title deed is usually held by the bank until the loan is repaid. This document includes details such as home type, size, location, and the purchase amount.

Remote Buying Process

Remote home consist of several stages, which differ for the primary and secondary markets.

Under-construction properties:

• The buyer or their broker submits the client's passport data for the SPA (Sales and Purchase Agreement) preparation.
• The first installment + 4% fee to DLD (Dubai Land Department) is paid.
• The buyer electronically signs the SPA or physically signs it if the documents are sent by courier.
• Subsequently, the investor receives the Ownership Certificate for the off-plan option (OQOOD).
• After the construction is completed and the full property cost is paid according to the schedule, the owner receives the keys (either in person or through an authorized representative) and the Title Deed.

Secondary housing options:

• The buyer makes a deposit (10% of the amount), which will be held by the broker until the transaction is completed.
• The seller provides a No Objection Certificate (NOC).
• The parties electronically sign a Memorandum of Understanding (MOU).
• The buyer or their authorized representative conducts the transaction with the seller in person, and the buyer pays the remaining amount for the property.
• The new owner receives the Title Deed.

Financial Aspects of the Transaction

How to pay for property in Dubai? The most common option is a bank transfer through the SWIFT system. Additionally, you can pay using a foreign bank card, cryptocurrency, or cash.

How to buy a property in the UAE on a mortgage? UAE banks provide loans to non-residents, but the terms are less favourable: higher interest rates and a larger minimum down payment. Those who already have a resident visa find it easier to obtain a mortgage.

Interest-free instalment plans from developers are available to everyone. Many developers offer flexible payment plans. The initial instalment usually ranges from 10% to 20%, and the remaining amount is paid in instalments during construction, and in some cases, over several years after its completion.

Risks and How to Minimize Them

To minimize risks when buying an apartment or villa in Dubai remotely, choose a reputable agency and developer. You can review reliable companies and their offers in separate catalogs on our website.

Choosing a professional broker is often a better decision than selecting and inspecting the property independently. A professional is familiar with market nuances, local area specifics, and can handle all necessary paperwork. They will immediately identify any deficiencies in finishing and construction work and, in case of defects during handover, can document them appropriately for the developer to rectify them promptly.

After-Sales Services

Many brokerage agencies offer after-sales support services. For instance, if an investor has acquired a unit remotely and plans to rent it out, the company's specialists can take photos and videos of the finished property, list it for rent on their platform, negotiate with potential tenants, and prepare the property for occupancy.

If the buyer plans to live in their new apartment, the agency can assist in setting up utility service contracts, explain how to pay electricity and water bills, as well as other mandatory contributions.

Apartments are often handed over unfurnished with standard finishes. Some agencies provide services for transporting the client's belongings to the new apartment, help choose stylish furniture, and select high-quality household appliances.

Conclusion

Remote home purchasing in Dubai and other emirates is quite common. Approximately 80% of foreign investors prefer to conclude transactions remotely because it is convenient, secure, and fast. Most developers and brokerage agencies in Dubai, Abu Dhabi, and other emirates are reliable and conscientious, value their clients, and offer a high level of service throughout the transaction process and also after the sale.

You can explore available options for apartments, villas, and commercial properties in our catalog. The company's specialists will always provide guidance on which agency is best to work with when making a remote purchase.