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Real estate in Dubai under mortgage in 2024

Home page » Blog, news, reviews about the UAE » Real estate in Dubai under mortgage in 2024
Author of the article:
Anthony Bovkun
UAE Real Estate Specialist
Date:  22.01.2024
Reading time: 11 min.
Views:  42

In 2024, the demand for real estate in Dubai It continues to grow, especially among Russians looking for investment and relocation opportunities. Mortgages in Dubai are becoming an increasingly affordable and attractive option. In this article, we will look at the main aspects related to obtaining a mortgage in Dubai, including opportunities for non-residents, the registration process, requirements and conditions under Dubai law, as well as moving to Dubai with your family and children.

Possibility of obtaining a mortgage in Dubai

In 2024, mortgages in Dubai will become more affordable for non-residents. UAE banks offer attractive terms and conditions, including low interest rates and long loan terms. However, to get a mortgage, you need to take into account a number of requirements. An important factor is the availability of a resident visa, which significantly increases the chances of approval of the application.

It is important to note that mortgages in Dubai for non-residents may have their own characteristics. For example, the initial payment is usually between 25% and 50% of the property value, while for residents this figure may be lower. It is also worth noting that the maximum mortgage term for non-residents is usually limited to 15-20 years.

Nevertheless, despite these features, a mortgage in Dubai for non-residents remains an attractive tool for investing in real estate. With a stable economy, a high standard of living and the UAE government's policy of attracting foreign investment, Dubai is one of the most preferred cities for buying real estate.

Investing in real estate in Dubai

Real estate in the UAE it is considered one of the most reliable and profitable investment options. Dubai offers guaranteed profitabilitygolden resident visa and high standard of living. Investments in Dubai real estate also provide a stable passive income and the possibility of obtaining residency.

By investing in Dubai real estate, you get not only high-quality housing in one of the most prestigious cities in the world, but also the opportunity to earn a stable rental income. At the same time, it is worth noting that Dubai is a popular tourist destination, which provides a high demand for rental housing.

In addition, the UAE government actively encourages investment in real estate, providing foreign investors with the opportunity to obtain a "gold" resident visa. This visa entitles you to stay in the UAE for a long period of time without the need for an annual renewal.

Thus, investing in real estate in Dubai is a profitable and reliable investment option that can bring significant profits in the long run.

The process of getting a mortgage in Dubai

Getting a mortgage in Dubai involves several stages, each of which requires special attention and preparation.

  • Bank selection. The first stage is choosing a bank. In Dubai, there are many banks, each of which offers its own mortgage terms. It is important to choose a bank with the most favorable terms, low interest rates and good service. It is recommended to pay attention to banks such as Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank.
  • Collecting documents. The second stage is collecting documents. Banks require the provision of a package of documents, including a passport, income certificate, real estate documents, and others. In some cases, you may need to provide additional documents, such as a job certificate or bank statement.
  • Sending a request. After the bank is selected and all the necessary documents are collected, you should apply for a mortgage. The application is usually submitted via the bank's website or in person at a bank branch. After submitting the application, the bank checks the information provided and makes a decision on granting a mortgage.
  • Making a mortgage. If the application is approved, proceed to the mortgage registration process. At this stage, the loan agreement is signed, the initial payment is paid, and other actions related to the mortgage registration are performed.
  • Purchase of real estate. After completing the mortgage, you can proceed to the purchase of real estate. It is important to note that Dubai has certain rules for buying real estate that must be followed.

The entire process of obtaining a mortgage can take from several weeks to several months, depending on the chosen bank and the complexity of collecting documents.

Expenses when applying for a mortgage loan

When applying for a mortgage, you must take into account additional costs. These include:

Taxes. In the UAE, there is a property tax, which is about 4% of the property value. This tax is paid in a lump sum when buying a property.

Agency fee. If you use the services of a real estate agent, you will have to pay them a fee, which usually ranges from 2% to 5% of the property value.

Real estate insurance. Most banks require real estate insurance for the duration of the loan. The cost of insurance may vary, but it usually amounts to about 0.3% - 0.5% of the property value per year.

Bank commissions. Banks can also charge fees for processing mortgages. These fees may include application review fees, loan origination fees, and others.

All these expenses can significantly increase the total cost of the loan. Therefore, before making a decision to get a mortgage, you need to carefully study all the additional costs and take them into account in your budget.

Requirements and conditions under Dubai law

Dubai's legislation in 2024 sets out a number of requirements for borrowers. These requirements are aimed at ensuring the reliability and solvency of the borrower. Here are some of the main requirements::

  • Age. The borrower must be at least 21 years old at the time of application and no more than 65 years old at the end of the loan term.
  • Salary level. The borrower must have a stable and sufficient income to repay the mortgage loan. The minimum income level may vary depending on the bank and the type of property.
  • Resident visa. Having a resident visa increases the chances of getting a mortgage loan approved. However, some banks also provide mortgages to non-residents.

In addition, banks can set their own requirements, which may include::

  • Availability of a permanent source of income. Banks prefer clients with a stable job and a constant source of income.
  • Stability of operation. Banks may require the borrower to work at their current place of employment for at least a certain period of time, usually from 6 months to a year.
  • No arrears. Banks usually check the borrower's credit history and refuse the loan if the borrower has outstanding debts.

All these requirements may vary depending on the bank and the terms of the mortgage. Therefore, before applying for a mortgage, it is recommended to carefully study all the requirements and conditions.

Banks providing mortgages in Dubai

There are many banks offering mortgage services in Dubai. However, among them we can distinguish the top 3 banks that offer the most favorable conditions:

  1. Emirates NBD. Emirates NBD is one of the largest banks in the UAE offering a wide range of mortgage products. This bank offers some of the lowest interest rates in Dubai and a long loan term of up to 25 years. In addition, Emirates NBD offers special conditions for non-residents and a flexible insurance system.
  2. Abu Dhabi Commercial Bank (ADCB). ADCB is another major bank in the UAE known for its flexible terms and fast application approval process. ADCB offers a mortgage with a fixed interest rate for the entire term of the loan and the possibility of early repayment without penalties.
  3. Dubai Islamic Bank (DIB). DIB is the first Islamic bank in the world that specializes in Islamic mortgage products that do not include interest. Instead of interest, DIB uses a system of joint investments and leases, which makes its products attractive to many borrowers.

Choosing a bank to get a mortgage depends on many factors, including your personal needs, financial condition, and future plans. Therefore, before making a decision, it is recommended to conduct a thorough study and, if necessary, consult with an expert.

Legal issues and resident visa

Buying a property in Dubai involves a number of legal aspects, especially for married couples. In accordance with UAE law, when buying a property for two people, both spouses must be specified in the contract. This is important to protect the rights of both spouses in the event of divorce or the death of one of the spouses.

In addition, it is important to take into account that the UAE has certain rules regarding the ownership of real estate by foreigners. For example, foreigners can only own real estate in certain areas called "free zones". When buying real estate outside these zones, a foreigner can only get the right to rent for up to 99 years.

After purchasing a property in Dubai, the borrower is eligible for a resident visa. This visa entitles you to live in the UAE, as well as to work and conduct business. The cost of a resident visa varies depending on the type of visa and its validity period, but usually amounts to several thousand dollars.

It is important to note that to obtain a resident visa, you must provide proof of ownership of real estate, as well as proof of having sufficient income to support yourself and your family. In some cases, you may also need a medical examination and a certificate of non-criminal record.

Installment payments from developers

Many developers in Dubai offer the possibility of installment payments when buying real estate. This allows you to significantly reduce the burden on the budget and distribute payments over a longer period of time. Installment payment terms may vary depending on the developer, so it is important to carefully study all offers on the market.

Advantages of installment payments from developers:

  • High availability of real estate. Installment payments allow you to purchase real estate, even if you do not have enough funds to pay for it in full right away.
  • Lower budget burden. Splitting a payment into parts allows you to distribute the load on the budget and simplify financial planning.
  • Without interest. In most cases, developers offer installments without interest, which makes it more profitable than a mortgage.

Disadvantages of installment payments from developers:

  • Installment period. Developers usually offer installments for up to 5 years, which may not be enough for some buyers.
  • Overpayment for real estate. Some developers may overestimate the value of real estate when providing installments.
  • Risk of unfinished construction. When buying a property from a developer, there is always a risk that the object will not be completed on time.

Thus, an installment plan from a developer can be a good option for those who can not afford to pay for the full property right away, but are ready to regularly and consistently pay part of the cost. However, before making a decision to buy in installments, it is important to carefully study all the conditions and take into account possible risks.

Moving to Dubai with your family and kids

Moving to Dubai with your family and children is a big step that requires careful planning and preparation. Dubai offers a high standard of living, excellent conditions for raising children and many opportunities for development. However, moving with your family also involves a number of challenges, including finding a place to live, schools for your children, and adapting to a new culture.

Advantages of moving to Dubai with your family and children:

  • High standard of living. Dubai is known for its high standard of living, including quality medical care, security and excellent infrastructure.
  • Quality education. Dubai has many international schools offering English-language programs.
  • Plenty of leisure options. Dubai offers a wide range of activities for children and adults, from beaches and parks to museums and theaters.

Cons of moving to Dubai with your family and kids:

  • High cost of living. Living in Dubai can be expensive, especially when you consider the cost of housing, education, and medical services.
  • Adapting to a new culture. Moving to another country is always associated with adapting to a new culture, which can be difficult for adults and children.
  • Hot climate. The climate in Dubai can be unusual for some people, especially during the summer months.

It is important to prepare for the move in advance and take into account all possible nuances. It is recommended that you discuss the move with your family, consult with experts, and carefully study all the necessary information.

Conclusion

In conclusion, getting a mortgage in Dubai in 2024 has become more affordable for Russians. Thanks to the attractive conditions, non-residents have the opportunity to invest in Dubai real estate and earn a stable income. However, before making a decision to buy a property, you need to carefully study all the conditions and requirements.

If you still have any questions or need help getting a mortgage in Dubai, you can contact us. We offer a full range of services related to the purchase of real estate in the UAE, including property selection, mortgage processing, legal support and relocation assistance.

Frequently Asked Questions

In 2024, mortgages in Dubai will become more affordable for non-residents. UAE banks offer low interest rates and long loan terms.

One of the important factors is the presence of a resident visa, which increases the chances of approval of the application. A down payment of 25% to 50% is also usually required.

Investing in real estate in the UAE provides a stable income, the possibility of obtaining a" gold " resident visa and a high demand for rental housing.

The process involves choosing a bank, collecting the necessary documents, applying for a mortgage, and finally buying a property.

The entire process can take anywhere from a few weeks to several months, depending on the bank and how the documents are collected.

 

These include real estate tax (about 4%), agency fees, and bank fees.

Some of the recommended banks include Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank.

What opportunities does a mortgage offer in Dubai for non-residents in 2024?

In 2024, mortgages in Dubai will become more affordable for non-residents. UAE banks offer low interest rates and long loan terms.

What are the requirements for obtaining a mortgage in Dubai?

One of the important factors is the presence of a resident visa, which increases the chances of approval of the application. A down payment of 25% to 50% is also usually required.

What are the advantages of investing in real estate in Dubai?

Investing in real estate in the UAE provides a stable income, the possibility of obtaining a" gold " resident visa and a high demand for rental housing.

What is the process for getting a mortgage in Dubai?

The process involves choosing a bank, collecting the necessary documents, applying for a mortgage, and finally buying a property.

How long does it usually take to get a mortgage?

The entire process can take anywhere from a few weeks to several months, depending on the bank and how the documents are collected.

 

What additional expenses should be considered when applying for a mortgage loan?

These include real estate tax (about 4%), agency fees, and bank fees.

Which banks are recommended to consider when choosing a mortgage in Dubai?

Some of the recommended banks include Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank.

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