In the webinar, “Dubai Property - Where to Buy and Why,” Khurram Asif, Manager for Dubai Mortgages, and Donald Klip, Co-Founder of GMG, provided valuable insights into Dubai real estate. They discussed the benefits of full-service property management for international investors, strategies to enhance ROI, and Dubai’s property market dynamics.
For those who couldn’t attend, the recording is now accessible here.
During the session, Khurram Asif (KA) and Donald Klip (DK) addressed a variety of questions, offering informative responses to help global investors make informed decisions in the Dubai real estate market. Remarks have been edited for clarity and brevity.
Can GMG assist with refinancing existing properties in Dubai?
KA: Yes, GMG can assist with refinancing fully paid properties in Dubai, offering 50% to 60% of the evaluated property value. Funds can be used for purchasing another property or as cash in hand, depending on the client’s profile.
What are the typical LTV ratios available for non-resident investors in Dubai?
KA: Non-residents can obtain up to 65% financing from Dubai banks, increased from 60%.
Is there VAT when buying properties in Dubai? If so, what is the amount?
KA: Yes, there is a 5% VAT in Dubai, applicable mainly to consumable goods. It does not apply to salaries, rental income, or property sale prices.
Does GMG offer assistance with property management in Dubai?
KA: GMG partners with top property management firms that handle tasks like maintenance, tenant management, and property cleanliness.
What are the fees and costs involved when buying and selling properties in Dubai?
KA: Buying: Realtor’s Fee: Minimum 2% of the property price. Title Registration Fee (Dubai Land Department): 4% of the property price. Selling: The buyer covers these fees.
How does the mortgage approval process differ for non-residents compared to residents?
KA: Non-residents face a simpler process, requiring only income proof, passport, and national ID. Credit reports and tax returns are not required, unlike for residents.
Are interest-only mortgage products available?
KA: Yes, one investment bank in Dubai offers interest-only loans for 12-month terms, with renewal options. Interest rates are higher than conventional loans.
How easy is it to get a mortgage after paying 50% for an off-plan property before completion?
KA: Buyers are advised to apply for a mortgage 60 days before property completion. Banks can finance the remaining balance upon property handover.
How easy is it to sell a property or exit a mortgage in Dubai?
KA: Selling properties in Dubai is straightforward, even with an active mortgage. There are no taxes on profits.
What is the outlook for long-term demand and the possibility of a market bubble in Dubai?
KA: Dubai's real estate market shows continued demand driven by low crime, strong infrastructure, and favorable tax conditions, reducing bubble concerns.
Is it easy to sell a property in the future if it gains a premium on the original price?
KA: Yes, selling properties at a premium is common, with no tax on profits.
Can the entire property purchase and mortgage process be done remotely?
KA: Yes, the entire process can be completed remotely without needing to visit Dubai or engage embassies or lawyers.
How long does it take for a loan to be processed in Dubai?KA: The average loan processing time is four to six weeks, from document submission to receiving property keys.
