Faq

Frequently asked questions

Is it possible to mortgage a property in Dubai?

Yes. Amlak, Tamweel, HSBC, Lloyds, Mashreq Bank, RAK Bank, National Bank of Dubai, United National Bank, Abu Dhabi Commercial Bank and Standard Chartered Bank to name a few lend on both ready to occupy and off-plan projects. Each one has different rates and terms. Some only lend to residents. You can also get mortgages internationally for property in Dubai. HSBC in the UK currently lends an asset-based mortgage.

How do mortgages in Dubai differ from those abroad?

Firstly, lenders do not lend on every project currently being built. Often, developments are sold with no lendings on at all (given the favourable payment structure system in Dubai, and not meaning they aren’t saleable). On the other hand, it is possible to get a mortgage on many examples of off-plan property here, unlike most places in the world.

How do local finance houses assess and issue mortgages?

It is usually based on your monthly income, less expenses, and then divided to three parts. This gives the figure used to calculate from, for each month over the term. They do not base it on how well the asset might perform, nor does it allow low-loan-to-value (i.e. large down-payment with a small loan). This makes it limited. Even if you are earning a seriously good wage, do not assume that a bank will lend you substantial sums.

Can I get a pre-approved mortgage?

Yes. This is preferable. Most lenders will work out how much they are likely to lend to you before you have a specific property in mind. This means you can then go looking for something you know you can afford.

What is a transfer fee?

A transfer fee is payable if you transfer your property to someone else. It is an administrative charge levied by the primary developer.

Do you get a residency visa if you buy a home?

Yes. But your contract should state that you are entitled to one. Residence visas are subject to normal immigration regulations. They are renewable every three years for example. They do not replace a work permit and if you have a work permit, your residency will come from that.

Do I have to pay tax on Dubai property if I am resident abroad?

Most states expect you to pay tax on assets abroad. In some jurisdictions, however (such as the UK), it is possible to not pay, by ensuring that rental income or proceeds from the sale of a Dubai property remain offshore. The best way to do this is through an offshore company or in a deposit account from an international bank where you can keep revenue and whcih allows you to deposit and transfer funds with a certain amount of privacy.

Information about a typical real estate transaction in Dubai

  • 1. Freehold Property – definition
    2. Sizes
    3. Documentation / Agreements / Registration & Title Deed
    4. Purchase Process
    5. Re-sale & Transfer
    6. Payments – Schedule & In Favour Of Whom
    7. UAE Residence Visa
    8. Other charges – Maintenance & Parking
    9. Home Owner Finance
    10. Defaults
    11. Project Completion
    12. Rental of Property Purchased
    13. Selling in Dubai
    14. Utilities in Dubai
    15. Factors driving Real Estate Demand
    1) FREEHOLD PROPERTY – DEFINITION
    What is Freehold Property? The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death.
    2) SIZES
    Studios – Size approximately 480 Sq. ft.
    One Bedroom – Size approximately 716 Sq. ft.
    Shops – Size varies, upwards and downwards of approximately 500 Sq. ft.
    Are all the units the same size? What other sizes available? Most studios and one-bedroom units are the same size. Some units have balconies and some do not. Sometimes the ones located on the corners of the building are slightly bigger. Retail shops on the ground floor vary in size and are priced accordingly.
    3) DOCUMENTATION / AGREEMENTS / REGISTRATION & TITLE DEED
    What documents are filled in to purchase a property on the primary market, i.e., directly from the developer? The buyer of a freehold property in Dubai only needs to provide a copy of his passport papers to purchase a property in the primary market, i.e., directly from a developer. A company purchasing a property must provide the developer the company’s registration documents (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution). Either entity, i.e., a person or a company, needs only to sign a property reservation contract with the developer to purchase a property. On handover of the property to the property purchaser, the property purchaser will have to register his property at the Govt. of Dubai Lands Dept. to obtain a title deed. The property purchaser would be responsible for paying the fees to the Govt. of Dubai Lands Dept. to obtain a title deed (this normally amounts to 2% of the property value). The property value must be fully paid up so as to obtain a Title Deed from the Govt. of Dubai Lands Dept.
    4) PURCHASE PROCESS
    Typically, the prospective Buyer and Seller enter into an MOU, wherein the buyer commits to purchase the property and the seller commits to sell the property. In a purchase transaction, the buyer pays an initial booking deposit (of not more than AED 100,000 for villas and apartments) to the seller. If the buyer withdraws from the transaction, the buyer forfeits his booking deposit. If the seller withdraws from the transaction, the seller refunds the booking deposit amount. The buyer pays the balance considered to the seller upon transfer of the property to the buyer.
    5) RE-SALE & TRANSFER
    a) Can a property purchaser sell his property? Most developers allow property owners to re-sell their property; however, some have restrictions on the amount the owner must have paid the developer before re-sale. Developers usually charge owners a transfer fee of 1% to 2% of the value of original list price of the property in order to allow the transfer to a new buyer.
    b) How is a transfer made? In order to allow the transfer to a new buyer, developers usually require a property owner to sign a transfer letter with the new buyer at the developer’s office. Developers then usually proceed to issue a new property contract with the new buyer.
    c) Does a property purchaser have to be in Dubai to get property transferred? No, a power of attorney can be appointed to someone in Dubai who may engage in the transfer formalities (the PoA must to be notarized and authenticated by the UAE Embassy in the property owner’s country of residence).
    d) Is a power of attorney is sufficient for the all transactions to be made including transfer? Yes, to purchase a property, a notarized POA is sufficient. To sell a property, a notarized POA + authentication by the UAE Embassy is sufficient.
    6) PAYMENTS – SCHEDULE & IN FAVOUR OF WHOM
    a) What are payment schedules and on-going installments? What is the currency of payment? There are 4 payment installments methods – Payment Schedules (A, B, C, D) and there is a discount applicable for paying more upfront i.e. Payment Schedule A: Reservation Fee = 10% plus further installments Payment Schedule B: Reservation Fee = 30% plus further installments Payment Schedule C: Reservation Fee = 50% plus further installments Payment Schedule D: 100% paid on reservation. All payments to the building owner must be made in AED (UAE Dirhams). 1 USD = 3.68 AED (fixed rate). The AED fluctuates against the GBP. As on the date of this report the AED 5.56 = 1 GBP.
    b) What form of payment is accepted? Wire Transfer / Bankers Draft / Money Order / Credit Card (at a later date)
    c) Does the building owner issue a receipt for every payment paid? Yes.
    d) Does the building owner send a statement of account to the property purchaser every month? No, a receipt is sent only when an installment is received.
    e) Is there a penalty for late payments? Yes, if the property purchaser delays a payment, he is charged late payment interest at the rate of LIBOR + 4% (LIBOR is defined as Emirates Interbank Offer Rate which can be looked up in the Financial Times). If the property purchaser delays the payment of 3 installments, the seller reserves the right to cancel the sale and up to 30% of the unit’s value may be forfeited.
    f) Who should the payments be made to? If the property purchaser purchases the unit without financing, then the payment is made in AED via bankers draft or telex transfer to the building owner and NOT to its agents unless specifically authorized in writing by the building owner.
    7) UAE RESIDENCE VISA
    a) Can all family members get a UAE residence visa: i.e. Father, Mother, Father, and children under 18 and unmarried daughters? For Apartments: a 3-year multiple entry UAE residence will be issued to the principal home property purchaser (e.g. Father) who can then sponsor his spouse and children (under 18 years of age) and any unmarried daughters above the age of 18 years. For Shops: a 3-year multiple entry UAE residence visa will be issued to the principal property purchaser (e.g. Father) who can then sponsor his spouse and children (under 18 years of age) and any unmarried daughters above the age of 18 years. To operate the shop as a commercial business, the shop owner would require a commercial trading license obtainable from the Govt. of Dubai Economic Dept. Depending on the nature of the commercial activity in the shop, the investor would either have to set-up a limited liability company or obtain a service agent license.
    b) Who issues the residence visa and is it guaranteed? The Government of Dubai issues it and it is guaranteed as long as the property purchaser owns the property and clears all security and medical tests and is not rejected by the Ministry of Labor and Social Affairs.
    c) If the property purchaser is not living in Dubai but plans to in the future, what will be the procedure to obtain a residence visa? Once the property purchaser buys a property he is automatically entitled to get a residence visa. He can choose the time and date when he requires it.
    d) If the property purchaser is not living in Dubai can they get a visa in a different person’s name such as their employees or other family members etc.? No, only the principal property purchaser gets a residence visa but may sponsor his/her dependents.
    8) OTHER CHARGES – MAINTENANCE & PARKING
    What are the maintenance and parking charges? Developers usually charge for maintenance at rates varying from AED 2 to AED 8 per year per sq. ft. of the built-up area for the unit purchased. Developers may also charge for parking and rates usually vary from AED 2000 to AED 4000 per parking bay (this is a one-time charge).
    9) HOMEOWNER FINANCE – MORTGAGES
    a) Is homeowner (mortgaging) financing available on freehold properties? Yes, Home financing is available on all Nakheel real estate projects from Nakheel’s home finance subsidiary, Tamweel, and on Emaar projects from Emaar’s home finance subsidiary, Amlak. Mashreq Bank also offers mortgages. RAKBank offers mortgages only once the project is completed. A range of other banks and finance institutions are starting to offer mortgages as well. Lending criteria varies at each institution. As of yet, no financing institution is offering mortgages on freehold developments of any private developers.
    b) How do I get finance? Each financial institution has a checklist of loan criteria. The property purchaser will have to fulfill the financial institution’s loan criteria and provide the necessary documentation which includes but is not limited to: Copy of passport(s) for property purchaser(s), Bank Statement(s) of property purchaser(s) for 1 year, Credit History – Credit Bureau report (EQUIFAX, D&B etc.), bankers reference, credit card report.
    c) When does the financial institution start charging interest? It depends on the bank. In most cases, interest is accrued during the construction period and the property purchaser will have to pay/clear this amount on handover of the unit. Then the property purchaser will have to repay principal and interest installments for the tenure of the loan.
    d) What will be the APR or Interest Rate? What is the compounding method? Depending on the bank between 5.5% to 6.5% p.a. payable on a declining principal balance. It may be monthly or quarterly.
    e) What are the mortgage tenures? Between 5 to 15 years depending on the financial institution.
    f) Do banks or financial institutions send the statement every period to our overseas address? Yes, which could be monthly or quarterly.
    g) Who should we make the payment out to? Payments should be made out to the name of the property seller for down-payment amounts or to the financial institution for loan repayments.
    h) Is a mortgage registered at the Govt. of Dubai Lands Dept.? Yes, when the property purchaser’s financing becomes a realty mortgage, it will be registered on each property at the Govt. of Dubai Lands Dept. Mortgage Section.
    10) DEFAULTS
    Under what conditions is default defined? Developers reserve the right to cancel the property reservation agreement and re-possess the title of the property in case of default from the property purchaser. In such a case, the property purchaser typically stands to lose the lesser of the installments paid already and 30% of the property value. If the property purchaser delays his installment payment beyond a grace period of normally 30 days from the date when the payment is due, the property purchaser is usually charged interest at the rate of approximately 6%, and the developer typically reserves his right to cancel the contract.
    11) PROJECT COMPLETION
    Is there a penalty payable to the property purchaser if the project is not completed on time? Typically, developers delay the staggered payment schedule if a property is not completed on time.
    12) RENTAL OF PROPERTY PURCHASED
    a) After completion, what is the estimated average annual rental for units?
    Studios: typically range from AED 28,000 to AED 35,000
    One Bedrooms: typically range from AED 35,000 to AED 60,000
    Shops: varies but typically range from AED 50,000 to AED 80,000
    Property owners can expect rental yields of 6% to 10% p.a. on the value of their property. The rental agents’ charges to manage the property on behalf of the owner are approx. 10% to 12% of the annual rental amount.
    b) What does the rental agent charge for property care, repair and maintenance? The rental agent’s charges for care, repair and maintenance are usually actual costs + a 30% markup. The charges are borne by the property owner.
    c) Is the rental market robust? Yes it may be beneficial to read the Gulf News’ (leading UAE daily newspaper) articles on rentals and market trends.
    13) SELLING
    a) If the seller wants to sell his property what are the charges normally charged by sales agents? Between 1% to 2% of the property value.
    b) What is the transfer fee if between family members? Same amount as above.
    c) Do the property purchaser and seller need to be in Dubai at the same time to transfer a property? No, as long as the power of attorneys are properly notarized and appointed.
    d) After a sale, how long is the residence visa is valid for? Normally between 30 to a max of 45 days after the property is sold to the new property purchaser, after which it is cancelled.
    14) UTILITIES
    a) Who pays the electricity, water and sewerage bills? The property purchaser incurs these expenses. How much? Electricity and water charges typically ranges from AED 250 to AED 500 per month i.e. GBP 36 – 73 per month or USD 68 – 136 per month. The telephone and Internet connections are separate and are charged as per actuals. Telephone hook-up normally ranges from AED 150 to AED 250 one time i.e. GBP 22 – 36, or 40 – 68 one-time charge. Internet ADSL costs approx. AED 250 per month i.e. GBP 36 per month OR USD 68 per month.
    15) WHAT IS DRIVING REAL ESTATE DEMAND
    a) Liberalisation of the real estate sector – expats can now own property
    b) High tax-free yields on freehold property rental
    c) Globalisation and its effects on property prices in metropolitan cities worldwide
    d) Favourable interest rate environment
    e) Mortgages & homeowner finance available
    f) Granting of “permanent” residency upon purchase of freehold properties
    g) Great Value – Real estate land & apartment valuations are cheap compared to international prices
    h) Conducive lifestyle: safe, tax haven, secondary and tertiary home for international buyers
    i) Dubai’s robust economic growth: 8% p.a. (GDP)
    j) Dubai’s robust population growth: 5.6% p.a.
    k) Large mid-income population bracket with high disposable income
    l) Dubai’s is the regional entrepôt & tourism center
    m) UAE is an open, welcoming & tolerant state with investor-friendly business policies

Everything you need to know about Homeowner Finance (Mortgages)

  • a) Is homeowner (mortgaging) financing available on freehold properties? 
    Yes, Home financing is available on all Nakheel real estate projects from Nakheel’s home finance subsidiary, Tamweel, and on Emaar projects from Emaar’s home finance subsidiary, Amlak. Mashreq Bank also offers mortgages. RAKBank offers mortgages only once the project is completed. A range of other banks and finance institutions are starting to offer mortgages as well. Lending criteria varies at each institution. As of yet, no financing institution is offering mortgages on freehold developments of any private developers.
    b)  How do I get finance? 
    Each financial institution has a checklist of loan criteria. The property purchaser will have to fulfill the financial institution’s loan criteria and provide the necessary documentation which includes but is not limited to: Copy of passport(s) for property purchaser(s), Bank Statement(s) of property purchaser(s) for 1 year, Credit History – Credit Bureau report (EQUIFAX, D&B etc.), bankers reference, credit card report.
    c)  When does the financial institution start charging interest?
     It depends on the bank. In most cases, interest is accrued during the construction period and the property purchaser will have to pay/clear this amount on handover of the unit. Then the property purchaser will have to repay principal and interest installments for the tenure of the loan.
    d)  What will be the APR or Interest Rate? What is the compounding method?
    Depending on the bank between 5.5% to 6.5% p.a. payable on a declining principal balance. It may be monthly or quarterly.
    e)  What are the mortgage tenures? 
    Between 5 to 15 years depending on the financial institution.
    f)  Do banks or financial institutions send the statement every period to our overseas address? 
    Yes, which could be monthly or quarterly.
    g)  Who should we make the payment out to? 
    Payments should be made out to the name of the property seller for down-payment amounts or to the financial institution for loan repayments.
    h)  Is a mortgage registered at the Govt. of Dubai Lands Dept.? 
    Yes, when the property purchaser’s financing becomes a realty mortgage, it will be registered on each property at the Govt. of Dubai Lands Dept. Mortgage Section.

Is there a penalty payable to the property purchaser if the project is not completed on time?

Typically, developers delay the staggered payment schedule if a property is not completed on time.

How much can I borrow?

While resident expatriates can generally borrow between 70% and 80%, non-residents can generally borrow 60% to 70%. It all depends on the lender, and the project they are lending on.

Under what conditions is default defined?

  • Developers reserve the right to cancel the property reservation agreement and re-possess the title of the property in case of default from the property purchaser. In such a case, the property purchaser typically stands to lose the installments paid already and 30% of the property value.If the property purchaser delays his installment payment beyond a grace period of normally 30 days from the date when the payment is due, they are usually charged interest at the rate of approximately 6%, and the developer typically reserves his right to cancel the contract.

What is driving real estate demand in Dubai?

a) Liberalization of the real estate sector – expats can now own property
b) High tax-free yields on freehold property rental
c) Globalisation and its effects on property prices in metropolitan cities worldwide
d) Favourable interest rate environment
e) Mortgages & homeowner finance available
f) Granting of “permanent” residency upon purchase of freehold properties
g) Great Value – Real estate land & apartment valuations are cheap compared to international prices
h) Conducive lifestyle: safe, tax haven, secondary and tertiary home for international buyers
i) Dubai’s robust economic growth p.a.(GDP)
j) Dubai’s robust population growth p.a.
k) Large mid-income population bracket with high disposable income
l) Dubai is the regional entrepôt & tourism center
m) UAE is an open, welcoming & tolerant state with investor-friendly business policies

What is freehold property?

The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner, and his heirs are entitled to inherit his title upon his death.

What is the purchase process?

  • Typically, the prospective Buyer and Seller enter into an MOU, wherein the buyer commits to purchase the property and the seller commits to sell the property. In a purchase transaction, the buyer pays an initial booking deposit (of not more than AED 100,000 for villas and apartments) to the seller.If the buyer withdraws from the transaction, the buyer forfeits his booking deposit. If the seller withdraws from the transaction, the seller refunds the booking deposit amount. The buyer pays the balance considered to the seller upon transfer of the property to the buyer.

What are the procedures involved in re-sales and transfers?

  • a)  Can a property purchaser sell his property? 
    Most developers allow property owners to re-sell their property; however, some have restrictions on the amount the owner must have paid the developer before re-sale. Developers usually charge owners a transfer fee of 1% to 2% of the value of original list price of the property in order to allow the transfer to a new buyer.
    b)  How is a transfer made? 
    In order to allow the transfer to a new buyer, developers usually require a property owner to sign a transfer letter with the new buyer at the developer’s office. Developers then usually proceed to issue a new property contract with the new buyer.
    c)  Does a property purchaser have to be in Dubai to get property transferred?
     No, a power of attorney can be appointed to someone in Dubai who may engage in the transfer formalities (the PoA must to be notarized and authenticated by the UAE Embassy in the property owner’s country of residence).
    d)  Is a power of attorney sufficient for the all transactions to be made including transfer? 
    Yes, to purchase a property, a notarized POA is sufficient. To sell a property, a notarized POA + authentication by the UAE Embassy is sufficient.

How can I register to Ejari?

Required documents to initiate Ejari registration include: 1. Copy of the title deed, 2. Copy of the tenancy contract, 3. Copy of the landlord’s passport, 4. Copy of the tenant’s passport and visa page. RERA charges per registration of tenancy contract is AED 160.00. Once the documents are submitted and the payment is made, registration will usually be completed at the same time.

What are the maintenance and parking charges?

Developers usually charge for maintenance at rates varying from AED 2 to AED 8 per year per sq. ft. of the built-up area for the unit purchased. Developers may also charge for parking and rates usually vary from AED 2000 to AED 4000 per parking bay (this is a one-time charge).

What is the average size of different units?

  • Most studios and one-bedroom units are the same size. Some units have balconies and some do not. Sometimes the ones located on the corners of the building are slightly bigger. Retail shops on the ground floor vary in size and are priced accordingly.Studios – Size approximately 480 Sq. ft.
    One Bedroom – Size approximately 716 Sq. ft.
    Shops – Size varies, upwards and downwards of approximately 500 Sq. ft.

What documents are filled in to purchase a property on the primary market, i.e., directly from the developer?

The buyer of a freehold property in Dubai only needs to provide a copy of his passport papers to purchase a property in the primary market, i.e., directly from a developer. A company purchasing a property must provide the developer the company’s registration documents (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution).

Either entity, i.e., a person or a company, needs only to sign a property reservation contract with the developer to purchase a property. On handover of the property to the property purchaser, the property purchaser will have to register his property at the Govt. of Dubai Lands Dept. to obtain a title deed.

The property purchaser would be responsible for paying the fees to the Govt. of Dubai Lands Dept. to obtain a title deed (this normally amounts to 2% of the property value). The property value must be fully paid up so as to obtain a Title Deed from the Govt. of Dubai Lands Dept.

Payments - schedule and in favour of whom?

  • a)  What are payment schedules and on-going installments? What is the currency of payment? 
    There are 4 payment installments methods – Payment Schedules (A, B, C, D) and there is a discount applicable for paying more upfront i.e. Payment Schedule A: Reservation Fee = 10% plus further installments Payment Schedule B: Reservation Fee = 30% plus further installments Payment Schedule C: Reservation Fee = 50% plus further installments Payment Schedule D: 100% paid on reservation. All payments to the building owner must be made in AED (UAE Dirhams). 1 USD = 3.68 AED (fixed rate). The AED fluctuates against the GBP. As on the date of this report the AED 5.56 = 1 GBP.
    b)  What form of payment is accepted? 
    Wire Transfer / Bankers Draft / Money Order / Credit Card (at a later date)
    c)  Does the building owner issue a receipt for every payment paid? 
    Yes.
    d)  Does the building owner send a statement of account to the property purchaser every month? 
    No, a receipt is sent only when an installment is received.
    e) Is there a penalty for late payments? 
    Yes, if the property purchaser delays a payment, he is charged late payment interest at the rate of LIBOR + 4% (LIBOR is defined as Emirates Interbank Offer Rate which can be looked up in the Financial Times). If the property purchaser delays the payment of 3 installments, the seller reserves the right to cancel the sale and up to 30% of the unit’s value may be forfeited.
    f)  Who should the payments be made to?
     If the property purchaser purchases the unit without financing, then the payment is made in AED via bankers draft or telex transfer to the building owner and NOT to its agents unless specifically authorized in writing by the building owner.

Everything you need to know about UAE Residency Visa

  • a)  Can all family members get a UAE residence visa: i.e. Father, Mother, Father, and children under 18 and unmarried daughters? 
    For Apartments: a 3-year multiple entry UAE residence will be issued to the principal home property purchaser (e.g. Father) who can then sponsor his spouse and children (under 18 years of age) and any unmarried daughters above the age of 18 years. For Shops: a 3-year multiple entry UAE residence visa will be issued to the principal property purchaser (e.g. Father) who can then sponsor his spouse and children (under 18 years of age) and any unmarried daughters above the age of 18 years. To operate the shop as a commercial business, the shop owner would require a commercial trading license obtainable from the Govt. of Dubai Economic Dept. Depending on the nature of the commercial activity in the shop, the investor would either have to set-up a limited liability company or obtain a service agent license.
    b) Who issues the residence visa and is it guaranteed? 
    The Government of Dubai issues it and it is guaranteed as long as the property purchaser owns the property and clears all security and medical tests and is not rejected by the Ministry of Labor and Social Affairs.
    c)  If the property purchaser is not living in Dubai but plans to in the future, what will be the procedure to obtain a residence visa? 
    Once the property purchaser buys a property he is automatically entitled to get a residence visa. He can choose the time and date when he requires it.
    d)  If the property purchaser is not living in Dubai can they get a visa in a different person’s name such as their em

Renting your purchased property?

  • a)  After completion, what is the estimated average annual rental for units?
    Studios: typically range from AED 28,000 to AED 35,000
    One Bedrooms: typically range from AED 35,000 to AED 60,000
    Shops: varies but typically range from AED 50,000 to AED 80,000
    Property owners can expect rental yields of 6% to 10% p.a. on the value of their property. The rental agents’ charges to manage the property on behalf of the owner are approx. 10% to 12% of the annual rental amount.

    The above mentioned are indications and may vary depending on the location and quality of the project.

    b)  What does the rental agent charge for property care, repair and maintenance? 
    The rental agent’s charges for care, repair and maintenance are usually actual costs + a 30% markup. The charges are borne by the property owner.
    c)  Is the rental market robust? 
    Yes it may be beneficial to read the Gulf News’ (leading UAE daily newspaper) articles on rentals and market trends.

Can landlords disconnect DEWA, Empower and other utility service to vacate tenant from the property?

  • No, the Landlord has no right to disconnect any utility service in the Property.

What are the required documents needed to list a Property with High Source Real Estate Broker?

The Landlord shall provide the Title Deed, Landlord’s valid Passport and Residence Visa copy, if mortgage, Bank Statement and copy of Mortgage and DEWA Account

Can a Tenant terminate his contract during the Tenancy Period?

Yes, a Tenant can terminate the contract, provided the Tenant will notify the Landlord two (2) months in advance and will be paying two (2) months rent as cancellation from the day of vacating the property and all the utility bills should be settled.

Can landlords disconnect DEWA, Empower and other utility service to vacate tenant from the property?

  • No, the Landlord has no right to disconnect any utility service in the Property.

What are the required documents needed to list a Property with High Source Real Estate Broker?

The Landlord shall provide the Title Deed, Landlord’s valid Passport and Residence Visa copy, if mortgage, Bank Statement and copy of Mortgage and DEWA Account

What are the payments the tenant need to make once agreed in leasing a Property?

The Tenant has to pay the agreed Annual Rent depending on how many cheques both parties agreed with, the Security Deposit, the Commission of the broker, deposit for DEWA and Empower(if applicable) and Ejari Registration.

What is Security deposit, how much is it and what does it cover?

Security Deposit 5% of the Annual Rent paid by the tenant in advance and held in reserve in the event of the depositor failing on a contractual obligation to protect the Landlord in a real estate lease. It covers Loss of Rent, Damage to the Property, Lost of Security Keys and Repairs that are not wear and tear

Can a Tenant use third party cheque for his Annual Rent?

Yes, a tenant can use a third party cheque provided they will be submitting a Letter of Indemnity from the Third Party and a passport or Trade License if it is a Company Cheque

Does the Tenant needs to register his Tenancy Contract with Ejari?

Yes, the Law clearly states that the Rent’s Committee shall not consider any claims unless the lease is registered with Ejari.

How to determine percentage of Rent Increase?

Rent Increase Calculator is available in the website of Land Department, it will provide you the current market price and the percentage of increase that can be applied in the Annual Rent of the property. You can go to this link:   http://www.dubailand.gov.ae/english/Tanzeem/Rentals/Rental_Increase_Calculator.aspx