New developments in the Emirates

Why buyers in the Emirates buy at the start of construction

The UAE market works differently from Russia’s. Developers sell projects well before construction begins, while the buyer’s funds are held in an escrow account and released to the contractor in stages as construction progresses. Buyers do not pay the full amount at once: a typical payment plan is 20% on reservation, half during construction and the balance on handover. The instalment plan is interest-free and provided by the developer.

This is the basic calculation: two to three years pass between launch and completion, and the project rises in price throughout that period. A buyer at launch pays less than someone who buys a year later and, at handover, owns a completed apartment at a price set two years earlier.

What freehold means and why it matters

Foreigners in the Emirates can own property only in designated areas. These are called freehold zones. There, an apartment is registered in the buyer’s name as a freehold property, with no time limit or local partner required, and is inherited under the usual rules. The vast majority of new Dubai projects are in these zones.

The other form is leasehold, a long-term lease of up to 99 years. It is uncommon, and each project listing states the type of tenure clearly.

What it costs to maintain a property

In addition to the apartment price, the buyer pays a service charge: an annual fee for maintaining the building and common areas. It is calculated per square metre per year and varies widely by building type: the figures for a straightforward residential complex differ from those for a tower with a rooftop pool and concierge. Project listings show the charge where the developer has announced it.

The purchase also includes a land department fee of 4% of the price and registration fees. The UAE has no annual property tax or tax on rental income.

How we work

Our services are free for buyers: the developer pays the broker’s commission, so it does not affect the apartment price. We find projects to suit your needs, show them in person or by video, review the payment plan and see the deal through to registration. Our Dubai team meets clients, takes them to properties and stays in touch after the purchase.