How easy is it to buy and sell property in Dubai?
Very easy, but the present system for buying and selling property is not one which is likely to be familiar to many global investors. Typically most countries that use Common Law require a lawyer to represent each party or a public official in Civil Law jurisdictions. In Dubai you can buy straight from the developer “off-plan” for little or no fees; alternatively you can buy direct from another private vendor in the secondary market, whether the property has been completed or not. There is an extremely buoyant market as demand currently exceeds supply and you will be able to sell your property in the secondary market before completion or after the property has been built. However many property developers require their consent to sale and purchases, and may also charge a transfer fee.

  Will the property be Freehold?
Most of the developments are offering freehold properties and your contract confirms this. The law is currently being passed through the courts. However it has not been finalised to date. It is understood that the freehold title announced by H.H. General Sheikh Mohammed bin Rashid Al Maktoum in 2002 shall be freehold as is understood in the international sense - where the owner is considered to have absolute rights to the property.

  Currently the developers register the property to the buyers. When will the Dubai Municipality register the property?
There is no registration of title being carried out by developers in Dubai yet with the Land Registry. Instead, the property is registered to the purchaser. Once the new land legislation becomes law, then it is expected that the land department will be empowered to register land titles in favour of foreigners for a registration fee of 2% of the purchase price, or valuation, whichever is the higher – usually paid 0.5% by the vendor and 1.5% by the buyer. The Land Registry has now been established, and staff have been allocated to developments in order to cope with the title demands when developments complete.

  Can I get a residency visa when I purchase a property?
It is possible to apply for a residency visa when you purchase a property. All visas are sponsored by the property developer and are renewable every 3 years at a cost of approximately 5000AED. You are only able to get a visa for the family if the property which you are purchasing is big enough to house the family comfortably. i.e. 2 bedrooms will only be for adult and 2 children maximum, studio flat will only get a visa for a single person or couple. These visas will only enable you to reside in Dubai, not work here.

  Can I come and visit the property before I buy?
Of course it is possible to come out and view the property before you purchase. Just remember that developments tend to sell out 18 months before they complete, so it may be that you can only see the area where it is going to be rather than the building itself.

  What is the rental yield I can expect?
Currently in Dubai there is a healthy rental market especially to foreigners and rental yields are between 8-10%. Obviously, in time, with all the apartments which will be available to rent, and as capital values rise, yields may drop to somewhere nearer 6-8%. It is worth bearing in mind that currently there is a shortage of property to either rent or to buy to live in and many developments will not be available to live in until the end of 2006. The current building program is only expected to meet current demand. However, 20 companies a day open up in Dubai and it is anticipated that the population will double by 2010, which will keep demand high for many years to come.

  Can you arrange finance for me?
We can introduce you to companies that can assist you in arranging finance in Dubai. Most of the bank's offer 70% ‘loan to original developer sale price' mortgages and the rates tend to range from 6 – 8%.

  Are there any legal safeguards for foreign investors in the case of non-completion or poor construction work by the developer?
Yes, there are codes of standards applied by the Dubai Municipality regarding building permits and contractual clauses. The developer will have to maintain the standards as stipulated in the regulations issued with regards to building construction, and also safety issues. In the event of a problem, assistance can be found from the contract entered into with the developer. This may contain building covenants which often provide a guarantee of workmanship of 10 years. There is also the civil code of the UAE which contains protection regarding building standards .

FAQ's about City of Arabia

  Where is the City of Arabia?
It lies on the south side of Emirates Road, near the Global Village and the Aqua Park, and not far from the head of the Dubai Creek.

  What does The City of Arabia mean?
The name was chosen to reflect the development's position in the centre of Dubailand. It is the key residential area at the heart of the region's largest leisure, sport, entertainment and retail complex, aimed at drawing visitors from all over the Middle East. Many of the attractions embody the cultural traditions of the Gulf Region and of the wider Arab World.

  Who is behind the Dubailand concept?
The driving force behind the Dubailand project is HH Gen. Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Federal Minister of Defence. He announced it two years ago, since when more than forty projects have been identified as components of Dubailand, which will be one of the largest groups of theme- parks and leisure facilities in the world, and one of the signature features of Dubai, like Disneyland in the US. Dubailand is a key part of HH Shaikh Mohammed's vision of Dubai as a world-class tourist resort and business destination.

  Who is the Developer?
The Ilyas and Mustafa Galadari Group are the owners and developers of the City of Arabia site. They are in close liaison with the Dubai Tourism Development Company, which as part of Dubai Holding, are the overall managers and coordinators of the Dubailand project. The CEO of Dubai Holding is Mohammed Gergawi, who sits in the Executive Office of HH Shaikh Mohammed bin Rashid Al Maktoum.

  What are the terms of sale?
The usual terms for residential and office accommodation alike are: an initial deposit of 5%, 10% on signature of an agreement to purchase, followed by a period of six phased instalments, leaving a final 25% payment on taking delivery of the keys of the property on completion in 2008..

 What are the Special Features of The City of Arabia?
The most striking features of the City are: the huge Mall of Arabia, with over 1000 retail outlets, and a wide range of attractions, designed to make it a renowned shopping resort; the Restless Planet dinosaur theme-park, which is being developed in collaboration with the Natural History Museum of London, with the aim of blending a little science and education with a large dose of excitement; a canal flowing between Mediterranean-style apartment-houses, and lined with shady walk-ways, cafes, restaurants, convenience stores and places to relax; and lastly 34 elegant towers, ranging in height between 33 and 63 floors. The aim of the project is to build a community and create a desirable new suburb of Dubai.

  When will it be completed?
The City of Arabia will be ready for occupation in the spring of 2008, when the Mall and the Restless Planet, which are linked together, throw open their doors. Parts of the Wadi Walk, with the Wadi Residences and some of the high-rise towers should be ready for occupation by the end of 2008.

  Are the Apartments and Offices open to all?
The apartments and offices are freely available to all for purchase.

  To what does the purchase of an apartment or office entitle the new owner?
The Government of Dubai, in consultation with the Federal Government of the UAE, is currently working on a Federal law covering ownership of property and the corresponding rights of residence in the UAE. Pending the publication of this law, which is expected later in 2005, purchasers of property in The City of Arabia will in effect be purchasing a long-term lease. Dubailand will probably be in a position before long to offer a period of residence to investors and purchasers, as is the practice with Nakheel and Emaar.

  How many Apartments will there be in The City of Arabia?
The exact number of apartments will only be determined when the sub-developers of the mixed-use towers establish the precise ratio between commercial and residential accommodation in their buildings. (The 30-storey towers - with three floors of parking at the base - will all be for residential use. The 45-storey towers will be for mixed use, and 60-storey towers will be exclusively commercial.) At a rough estimate, the number of apartments could be as many as 8000.

  How big will the Mall of Arabia be?
The Mall is planned to be the largest in Dubai and one of the biggest in the world. It will have over 1000 retailers, depending on the requirements of the tenants. Around ten percent of these will be food outlets. There will be a large international hypermarket. The Mall is designed to provide themed areas or "destinations" to make shopping easier, so that those wanting, for instance, to visit luxury shops or have treatment in the spa, will be guided to a quieter part of the Mall, away from the children's play area, the food courts, the electronic goods and technology stores, the bowling alley or the sports and leisure activities area. In the centre of the Mall will be an open area for theatrical or promotional events and exhibitions. The Mall will provide covered parking for over 10,000 vehicles.

  What community facilities will there be in City of Arabia?
The City of Arabia will be a new community in Dubai, and in additional to the shops, cafes and restaurants, there will be a wide range of facilities for residents, including schools, clinics, mosques and petrol stations.