Purchase of real estate – Property Residence Visa
The purchase of a real estate property can also facilitate acquiring
a residence visa in the UAE . Properties based in the emirate of Dubai provide for residence visas , which are renewable every two years . For properties outside of Dubai , the property owner can apply and obtain a multiple entry visit visa renewable every six months . The property owner can then sponsor their family members . Some of the conditions of the property visa are as follows :
1 . The value of the residential property ( after deducting the mortgaged amount outstanding ) should be more than AED 1 million ( about US $ 275,000 ).
2 . The property owner must have a monthly income of no less than AED 10,000 or its equivalent in foreign currency . 3 . The property must also be completed and suitable to live in . 4 . Only one person can apply for residency with a given property , even if ownership is deemed to be held jointly .
Acquiring property in Dubai
The UAE has been experiencing declining sales prices and rents as new residential supply continues to focus largely on the affordable segment . This provides the opportunity for end users to enter the market and become home owners . Certain Dubai residential developers have started to offer payment plans phased over two or three years to service the mid-market segment . Potential investors can also access real estate finance in Dubai on very competitive terms . Since the 2008 property crisis , Dubai has put in place a number of bold steps to prevent speculation and protect investors and home owners :
• The transfer fee for each property transaction has increased from 2 % to 4 % of the property value , well below rates
applicable in other jurisdictions – for example , France ( 6 %) and the UK ( 4 – 15 %)
– to prevent speculation , and maintain a stable market .
• The Real Estate Regulatory Agency ( RERA ) has been established as a regulator of all real estate operators and projects .
• RERA publishes a rental index that outlines the percentages of maximum property rent increase that are allowed upon renewal of tenancy contracts .
• Developers need to maintain escrow accounts , providing protection to mortgagees of off-plan purchases .
• Credit bureaux give UAE banks access to consumer credit information , reducing exposure to risky borrowers and offering improved terms to borrowers with better credit profiles .
Helping you set up or relocate in the UAE
With over eight years ’ presence in Dubai , ABAX UAE assists companies and individuals to relocate in Dubai . We help with all visa and business application procedures , and will deal with the relevant authorities on your behalf . We have also built specific expertise helping companies to set up in UAE ' s free zones and assisting them with their ongoing compliance and administration requirements .
For more information , please contact :
Nousrath Bhugeloo Partner
Nina Auchoybur Managing Director ABAX UAE
nousrath . bhugeloo @ abaxservices . com nina . auchoyburl @ abaxservices . com www . abaxservices . com
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