Property buyers in Dubai are attracted not only by the favorable climate. The infrastructure is very developed here, and housing can really bring income and there is no tax on it. It is also customary here to issue “golden visas” to buyers for various periods, and those who plan to stay for permanent residence are offered excellent job prospects. Off-plan projects in Damac Hills are especially favorable if you are a foreign investor.
If you are a foreign citizen, the purchase will consist of a simple algorithm. Usually it passes quickly and does not require large expenses for support or documents. Here we will look at the features of a mortgage in Dubai for expats in 2022-2023.
Types of mortgage loans for foreigners
It is important to read all the offers here in order to get the best one. Any expat can choose conditions from suitable programs:
- Floating interest rate. The amount of the bank overpayment changes every month, and the minimum rate will be only 2.5%. Then it changes based on the rate of the Central Bank of the United Arab Emirates. A big plus is that fluctuations in the exchange rate here do not generally affect the amount of interest.
- Loan with fixed interest rate. It remains unchanged during the entire payment period.
- Mortgages with an upper limit. This is also a kind of floating interest, but here the overpayment will not be higher than a predetermined threshold. This type of lending applies to the first 3 years.
- Discounted rate. Mortgage option, when advantageous discounts are provided on interest, e.g., a return of 0.5%, but not during the entire repayment period – but for a certain period (usually the first years of loan repayment). This is one of the most profitable ways to buy a home in Dubai.
- An adjustable mortgage is one of the most cost-effective ways to buy property. But there are some difficulties here – not every bank is able to issue such a loan. The meaning of this program is to combine all the accounts of the accredited. When funds are found on any of them, the mortgage is automatically reduced by this amount. Mortgages are also available to expats for apartments in new buildings or other properties of a commercial nature.
Briefly, the process of issuing funds for housing is as follows:
- After choosing a bank and determining the type of mortgage, the future borrower must be approved. The check lasts no more than 3 days. The bank will check the financial capacity of the borrower, debts, credit history, and profitability.
- If everything is in order, the future borrower must pick up a property within 60 days from the date of approval.
- Once the property has been selected, the buyer pays a fee and the bank evaluates the property.
- Only after this is the final verdict on the refusal or approval of the mortgage issued.
This is a simplified scheme, since each bank in Dubai considers its own conditions for foreign investors.
Types of property for sale in Dubai in Damac Hills
With several enclaves still under construction, freehold properties are more popular in the Damac Hills area. Homebuyers can have a collection of apartments, townhouses, as well as well-designed villas. Apartments are the first form of ownership in Damac Hills.
- Luxury apartments in the area cost between AED 400,000 and AED 2.3 million, which are relatively reasonable for the amenities and services.
- The starting price for a studio apartment ranges from AED 350,000 to AED 800,000, depending on the quality of each project.
- Reference prices for 3 bedroom villas are around AED 1.2 million and for 4 bedroom accommodations around AED 1.3 million. In addition, the price of typical 3 bedroom townhouses is around AED 1.4 million.
Most of the houses are mainly equipped with high quality products and decorations.
These properties can be found in the area in 26 separate sub-communities. The most popular layout of townhouses is three bedrooms. All villas and townhouses provide access to world-class shopping, entertainment and leisure activities, as well as stunning outdoor venues such as Trump International Golf Club Dubai and The Park, which spans over four million square feet of lush greenery.
Real estate in Dubai
Emirates.Estate website holds a huge database of real estate in Damac Hills and other areas of the city. Decide on your budget and property preferences and start your search today.
Related
FAQs
Yes, overseas investors who want to purchase a property in Dubai to add to their real estate portfolio, or as a holiday home, can certainly get a mortgage.
What is the minimum salary for a home loan in Dubai? ›
The minimum salary needed to secure a home loan in Dubai typically starts at AED 15k but can rise up to AED 120k, depending on the property's value and type.
What is the minimum down payment for a mortgage in Dubai? ›
Down payment requirements in the UAE
Buying a property outright with liquid assets or personal savings is not a reality for most, and completing the home-buying journey is only possible with a mortgage loan. The minimum mortgage down payment on a house in Dubai is 20% for expats and 15% for locals.
How to buy a house in Dubai for expats? ›
When buying a house in Dubai as an expat, you must first register it with the Dubai Land Department (DLD) and pay its fees. These fees comprise 4% of the purchase price with an administrative fee of AED 580 for apartments and offices, AED 40 for off-plan projects and AED 430 for land.
How hard is it to get a mortgage in Dubai? ›
Getting a mortgage in Dubai can be a complex process, but with the right help, the process can be made more straight-forward. Some factors that may affect your ability to get a mortgage in Dubai include: Income: You will need to demonstrate that you have a stable and sufficient income to cover the mortgage payments.
What is the current mortgage rate in Dubai? ›
The average interest rate for a mortgage in Dubai is currently between 2.99% and 4.99%, depending on the lender and the product type. Fixed rate mortgages are typically slightly higher than variable rate mortgages.
How much deposit for a mortgage in Dubai? ›
How much can you borrow for a UAE mortgage? Expats taking out a residential loan will need a deposit of at least 25% if they are buying a property worth up to AED 5 million. More expensive homes will require a deposit of at least 35%.
What is the age limit for mortgage in Dubai? ›
In the UAE, the maximum loan term is 25 years, or up to age 65 (salaried employee) or 70 (self-employed). If the employer has no set retirement age, some banks will allow a term up to age 70 for salaried employees.
What is the minimum salary to live well in Dubai? ›
To live comfortably in Dubai, the recommended salary is about USD $4,900 to USD $8,168 (AED 18,000 – AED 30,000). This amount is enough to cover rent in a decent apartment in Dubai, cover your bills and expenses, and cover the cost of additional health insurance plans for extra protection.
Is 1,000,000 AED a good salary in Dubai? ›
This is a decent salary by any standard for a single person. With a salary of 50k, you can take 1,000,000 AED at a rate of 2.89 for a tenure of 48 months. Is 52,000 AED/month sufficient salary for a single man in Dubai? It is not enough if you go for fine dining for lunch & dinner everyday.
No, mortgages in Dubai are not interest-free but have very low-interest rates ranging between 3% and 5%, depending on whether you choose to have a fixed or variable interest rate.
Can you leave Dubai with a mortgage? ›
Can I Leave the UAE If I Have a Mortgage to Pay? Yes, borrowers are allowed to leave the country even when they have a mortgage to pay. However, the borrower might have to keep the property buy-to-let and pay the instalments on time.
What is the best area to buy property in Dubai? ›
Best Areas to Buy Property in Dubai
- Business Bay. On the top of the list of the best places to buy properties in Dubai is Business Bay. ...
- Downtown Dubai. ...
- Dubai Marina. ...
- Jumeirah Village Circle. ...
- Palm Jumeirah. ...
- Arabian Ranches. ...
- International City. ...
- Jumeirah Lake Towers.
Common Risks of Buying Property in Dubai
- Market Volatility. ...
- The Risk of Miscommunication. ...
- The Reliability of the Developer. ...
- The Quality of the Real Estate. ...
- Construction Delays. ...
- Unforeseen Expenses. ...
- Instalments and Mortgage. ...
- District Selection.
Once you have purchased the property you may apply for a residence visa. This visa will be valid for up to 2 years, renewable, as long as you still own the property and you visit the country at least once every 180 days.
Can a US citizen buy a house in Dubai? ›
Unlike many other countries where foreign ownership is restricted, Dubai allows foreigners to buy property with absolute ownership rights. This means you have complete control over your investment, similar to owning property in the U.S.
How can I buy property in Dubai if I am not a resident? ›
As mentioned earlier, Dubai's property market is open to non-resident investors, meaning that a residence visa is not necessary when buying property. However, they are required to hold a valid passport when purchasing property in Dubai to confirm their identity.
Who is eligible for mortgage in Dubai? ›
Eligibility. To apply for a home loan with us, you need to be: a UAE National earning at least AED 10,000, or a UAE resident earning at least AED 15,000. an expat employed in the UAE for at least 3 years with at least 1 year in your current job.
Can I get residency in Dubai if I buy a house? ›
Investor's costs for getting a UAE residence visa
You may obtain a UAE residency visa for ten years by purchasing real estate. Investors can buy properties in the Freehold Zones; these are the areas where foreigners may purchase real estate. The minimum investment amount is AED 2,000,000, or about $545,000.
