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Finding a Suitable PropertyWith so many developments available on the market the biggest challenge to face most of our clients is finding the most suitable to their needs. To do this our staff will take time to understand your requirements and advise you accordingly. Property deals tend to get closed quite quickly, with this in mind it is highly advisable to arrange your finances prior to commencing your search, this often helps to avoid disappointment. Construction Period and DevelopersMost developments are due for completion at least 18 months after launch. It should be noted that the system of Escrow accounts in Dubai is limited to a few developers, whereas the majority are using investor's instalment payments to fund the construction of their specific buildings. There is obviously little risk with the Government backed developers, but it is important to use reliable private developers. To ensure investor protection, the Government now require that new developers lodge a bond for 50% of the sale price of the building before units can be marketed for sale. Payment SchedulesUnits are paid for by a series of payments spread over the construction period. Payment schedules tend to be quite evenly spread requiring the majority of the purchase price to be paid before completion. All developments vary but typically the purchaser would be required to put down 10/ 15% booking deposit followed by 10/ 15% every 3 months or even up to 20% installments in some cases. PremiumA property is sold by the developer at the 'Original Price' to the purchaser. The capital appreciation on the property is referred to as the 'Premium.' When a purchaser buys from another individual it is referred to as a 'Secondary Sale.' ValuationsIf you are raising finances for your Dubai property from one of the locally based Banks you will often be required to obtain a valuation if you are buying a 'secondary sale. This is normally quite a straightforward homebuyers valuation and is aimed at confirming the market price and any premium on the property. Re-Sale TermsThe terms and conditions applied for re-sale differ from developer to developer but it is worth noting them for the 2 largest developers; Emaar - any Emaar property can only be re-sold once during the construction period, i.e. Purchaser 1 buys off-plan from Emaar but decides to sell before completion. Purchaser 2 can only re-sell that property after it is complete which means settling the balance outstanding to the developer on the due date. Once the property is complete it can be sold on again at any time. Emaar charges a Transfer Fee of 1.5% for a property that is yet to be completed and registered with the Land Department. In the case of a registered property, sellers will require a No Objection Certificate from Emaar, currently costing AED 5,000. The land department will charge 0.5% to the seller and 1.5% to he buyer. Nakheel - any Nakheel property can be re-sold at any time. At whatever stage the payment plan is at, a 10% accelerated instalment is applied, i.e. if Purchaser 1 has paid 30% so far to Nakheel then Purchaser 2 has to pay 10% of the next payment due on transfer. Nakheel charges a Transfer Fee of 2% (of Original Price). Land Department fees are as above for completed and registered properties. These terms are subject to change. Most private developers allow re-sale to take place at any point during construction and typically charge a 2% (of Original Price) Transfer Fee. Legal advice for property buyersIn many parts of the world it is usual practice to enlist the services of a lawyer when purchasing a property but this is not normally the case in Dubai. Contracts are drawn up by the developers themselves and money is usually directed straight to the developer or through the agents' own clients' account. If a client wishes to seek advice on their purchase, New Shores International can recommend a local law practice that has worked closely with our clients in the past. FinancialIf you are buying a property on Dubai's expanding 'secondary sale' market then you could be required to pay a 'premium'. The premium represents the profit on the original sale price. Properties in developments such as Signature Villas on Palm Jumeirah have changed owners more than once so the premium being asked for may only represent a small profit for the previous owner. It is important not to get too hung up on 'premiums', rather you should look at the price per square meter or foot, the location and facilities. LendingThe mortgage market in the UAE is still very young and most banks will still look at the Original Price when calculating the level of lending available to an individual. For residents of the UAE, 80% is achievable and 70% for non-residents. The market has evolved over the last 12 months and lending has improved to take account of Premiums. For example, on a completed villa where the Original Price was 1m AED and the re-sale value is now 1.3m AED, the bank will not only lend 70% of the Original Price but will lend on a proportion of the Premium as well, subject to valuation. When applying for lending on a property during construction, the bank will tend only to lend on the Original Price and not the Market Price. The private developers are generally tied to one lender and offer a set percentage loan. Some private developers offer no lending at all which must be considered for re-sale. This market will become more competitive (currently 13 lenders in the market including four international banks - Standard chartered, HSBC, Llyods TSB and Barclays.) and improve as more properties come to completion and will be a contributory factor to continuing price rises. We have built close working relationships with Banks and mortgage advisors in Dubai and the UK. We will be pleased to introduce you to these companies to assist with your purchase. Area guide- Dubai Below is a general overview of Dubai including information on the different areas within the Emirate. The guide will help you gather general knowledge about Dubai and the practicalities of travelling there. Sitting at the crossroads of Asia, Africa and Europe, Dubai is ideally located. With a fast growing economy, Dubai is producing record-breaking projects to produce a plethora of awe-inspiring developments catering for both commercial and tourism needs. Only four years ago when the first of the Palm Island projects was announced, it seemed an impossible task, yet now the Palm Jumeirah is nearly completed and more than 20 other key projects are underway, making The Palm look distinctly small by comparison. And so the building goes on, bigger and better at each stage. Having been built from a desert, Dubai's natural surroundings are arid but, despite its sandy and rocky nature, Dubai and the UAE as a whole are adorned with many green parks. Dubai is actually undergoing an extensive "greening programme", to border the roads with colourful flowers, grass and palm trees, consistently maintained by round-the-clock gardeners and workers cleaning and cutting its parks and borders. A subtropical, arid climate means that rainfall is rare and erratic, on average falling only 25 days per year between December and March. Average temperatures range from around 24°C in January to 41°C in August. During winter, occasional sandstorms can cover the city from the surrounding dessert. Residential areas in Dubai are plentiful and it will take careful planning to decide which is best for you. Below we summarize the main areas: Al Barsha: known for a quiet pace of life with large, good value villas, all within easy reach of the Sheikh Zayed Road and large local shopping Mall. Al Qusais: cheap accommodation, easy parking on the outskirts of Dubai. Garhoud: a popular suburban residential area within easy reach of downtown Dubai and two minutes from the airport. Karama: thriving commercial area, rich with amenities and reasonable rents. Al Safa & Al Wasl: a quiet, well served area, near Bur Dubai, Dubai Marina. Jumeira and the beach. Arabian Ranches: a safe, enclosed community of villas and lush gardens, popular with overseas buyers. Green Community: An oasis of green located on the outskirts of Dubai, near the Jebel Ali Free Zone. Ideal for families. Bur Dubai: Well served apartment blocks in a conveniently central location. Deira: Upmarket residential area, popular with expats. Good shopping amenities and relatively cheap rents. Dubai Marina & Al Sufouh: A highly desirable area, near entertainment facilities and Media and Internet City. The area boasts many palatial villas. Emirates Hills: Family villas along attractive tree-lined streets with surrounding landscape gardens. 20-30 minutes easy commute into central Dubai city. Jebel Ali & The Gardens: Originally a satellite town to Dubai, this area is slowing integrating into the urban sprawl. Well connected and within easy reach of Media and Internet Cities. Jumeira: Fantastic, highly prestigious name and location close to the beach, shops and central Dubai. Mirdif, Rashidiya & Al Warqa: Lowest rents with a suburban feel. The area is currently undergoing development on its surrounding desertland. Oud Metha & Umm Hurair: Apartments in a central location with easy access to highways, shopping and leisure complexes. Satwa: Central location and a popular choice amongst singles and young couples looking for lively hustle and bustle. Trade Centre: Home to some of Dubai's biggest residential and commercial towers, including impressive hotels. A popular area where rents are high. UmmSuqueim: Popular for its proximity to the beach, while remaining relatively peaceful. Upmarket area, popular with expatriate families looking to live in a comfortable family villa. Information required when travelling to Dubai
Travelling to Dubai A property purchase in Dubai is an easy option with many airlines operating to its modern international airport. European investors in Dubai real estate can fly to the emirate in a mere 7 hours. The Dubai International Airport was built in 1959 by order of the late ruler, Sheikh Rashid bin Saeed Al Maktoum, and was the first airport to be built in the UAE. At that time, the airport only contained one runway of 1.8 km (1.12 miles). The airport is located only 4 km (2.5 miles) south-east of the city centre, making commuting an easy process. The Dubai Airport is the fastest growing airport in the Middle East. The airport is continuously developing and currently has 2 terminals to accommodate 100 airlines connecting to over 140 destinations. Some of the more popular airlines connecting to Dubai are:
Healtcare - Dubai Having access to healthcare is important for anyone considering a move to a new country such as Dubai. Hospitals in Dubai are excellent and offer a free or very low cost public health service for Dubai nationals and, in certain circumstances this is also open to expatriates and tourists. For some time however, Dubai has been encouraging medical insurance for employees and in May 2007, it was announced that a unified health insurance system would be put into place. From 1st January 2008, all companies will have to insure their workers, while tourists with a visa for two months or more will also be required to have health insurance. Although the Dubai health care system is also open to tourists for emergencies, they are advised to take out medical insurance to cover private medical treatment. Many of the large projects such as Dubai Sports City include medical facilities in their plans and provide all main medical services, along with a 24-hour emergency service. Sports City, even offers sports medicine and rehabilitation clinics. General PractitionersGPs of many nationalities practice in Dubai making it possible to find a doctor who speaks your language. Doctors must have their qualifications verified by the Dubai Ministry of Health before they can begin work in the region. Many advertise in the yellow pages, but it is advisable to find one through recommendation or by asking at your embassy. Most GPs work in clinics where it is usual to make an appointment although it is often possible to see a doctor immediately. Payment is expected at the time of the consultation and a receipt is issued so that fees can be reclaimed from your insurer. Clinics have varied opening times, but the normal hours are between 9.00 am and 1.00 pm and again from 5.00 pm to 8.30 pm. HospitalsHospitals and large clinics are open 24 hrs a day and patients are usually attended to immediately. The state-run hospitals in Dubai are:
Private hospitals in Dubai have luxurious surroundings and the cost of these is directly related to the level of luxury you receive. Your medical insurance company will inform you whether there are any restrictions as to which hospitals you are allowed to use. WaterMost of Dubai's water supply is from desalinated water and while this is perfectly safe to drink, the majority of the local population prefer to drink bottled water. Pharmacies:Most medicines are easily available in Dubai and at least one pharmacy in the city is open 24 hours. To find the duty pharmacy, look in the local press or phone the municipality emergency number: Dubai 04 2232323. Most pharmacies are open from 9.30am to 1pm and from 4.30 to 8.30pm or later, Saturdays to Thursdays. Emergency Numbers:Emergency ambulance: 998 Police: 999 Driving in Dubai There are a number of practical issues to bear in mind when driving in Dubai. The information below will help you have a trouble-free driving experience. With a wealth of fascinating historical and archaeological sites as well as many natural wonders to see in this vibrant country, driving is essential if you want to get about because, as yet, there is little in the form of public transport. Dubai has an excellent network of roads connecting the city and surrounding areas, with the Sheikh Zayed Road, the main arterial link in and out of the city. Two bridges and a tunnel link the two main districts Bur Dubai and Deira with each other. However, like many modern cities that have undergone rapid growth, Dubai is suffering the consequences of its success through the resulting congestion. Toll System (Salik)A round-the-clock toll system or congestion charge for vehicles travelling along the Shaik Zayed Road and Al Garhoud Bridge was imposed in Dubai from the beginning of July 2007. Charges are paid by means of a pre-paid sticker placed in the windscreen of the car and read by automatic readers as cars pass through the toll areas. Stickers can be bought at filling stations and certain banks. Further information on this charge can be found at the following website www.salik.ae Desert DrivingRoads in Dubai are usually excellent and there is no need for 4X4 vehicles unless you are intending to drive across the desert or take part in off-road activities; in which case, it is advisable to drive in convoy with people who do have local knowledge. If you drive into the desert on your own, some basic precautions are essential:
RegulationsAn International Driver's Permit carried in conjunction with your national driving licence is recommended for driving in the UAE. Foreign licences are acceptable providing that you are a citizen or bona fide resident of the country that issued the licence. Make sure documentation is carried with you at all times when driving. Police officers will expect to see documentation if they stop you. Offer the IDP first, as the officer may need to retain it, thereby leaving you with your national driving licence with which to continue your journey. All vehicles drive on the right hand side of the road. Seatbelts, as in most modern countries, are mandatory. There is a zero tolerance attitude towards drink/driving and the blood alcohol allowance is 0%. Banking in Dubai Knowledge of Dubai’s banking system will help with your property purchase. Dubai has a very sophisticated banking service and many international banks have established branches in the city. In order to open a bank account in Dubai you will need to have a residence permit or open an offshore account. Although mortgages are available to finance your property purchase from Dubai banks, the options are still quite limited and interest rates can work out higher than in many other countries. This situation is gradually changing and both international and local mortgage lenders are making it increasingly attractive to borrow for property finance. While some purchasers seek the assistance of a local mortgage broker to find them the best finance options, others prefer to raise a mortgage from their own countries. National Banks:
Foreign Banks:
Opening HoursBank opening hours vary throughout the region. In general, banks are open from 8am to 1pm, Saturdays to Wednesdays. On Thursdays, opening hours are usually 8am to noon, and banks (like other businesses) are closed on Fridays. Some banks re-open in the afternoon from 4.30 to 6.30pm Cuisine - Dubai An ever-growing cosmopolitan population means Dubai literally serves the world on a plate. Below we enlighten you on what to expect when wining and dining in Dubai. Dubai is home to every type of cuisine imaginable, from European to American and Indian to Asian. Many of the restaurants favoured by foreigners are five star options located in hotels and alcohol is served with your meal at a high price. Other excellent outlets also exist within the city but, in line with the local culture and Muslim religion, alcohol is not available in these local restaurants. Fast food chains also abound in Dubai and you can find the likes of McDonald's, KFC, Pizza Hut and Burger King on many street corners. The mix of nationalities in the city also means the supermarkets tend to stock a wide range of products from around the world. Fruit and vegetables often need to be imported so can be quite expensive from supermarkets, while locally grown cucumbers, tomatoes, aubergines, courgettes, green peppers and potatoes can be bought for lower prices at the bustling fruit and vegetable souk. The fish market is also worth a visit and offers a huge range of fresh fish, along with an authentic local atmosphere. Arabic CuisineWidely available in the Emirate, most of the Arabic food in Dubai is based on Lebanese cuisine. Common dishes are shawarmas (carved lamb or chicken carved from a spit and tucked into pita bread with salad and tahina), falafel (mashed chick peas and sesame seeds rolled into balls and deep fried), hummus (creamy chick pea and tahina dip) and tabbouleh (buckwheat mixed with parsley and mint). Most Arabic restaurants offer a good selection of fresh fruit juices to accompany the meal. Emirati CuisineLocal Emirati food blends ingredients imported from around Asia and the Middle East. Characteristic spices include cinnamon, saffron and turmeric, along with almonds, pistachios, limes and dried fruit. Dried limes are common in Emirati cuisine and reflect a Persian influence, giving dishes a distinctive tangy flavour. Pork Pork is difficult to come by in Dubai as it is taboo in Islamic culture and for this reason it is the priciest meat available. Should a restaurant offer pork, it would need to be kept in a separate fridge and prepared with separate utensils and equipment than the rest of the foodstuffs. Even supermarkets need to sell pork in a completely separate area from other meats. Alcohol Akin to pork, alcohol is also forbidden by the Muslim culture but it is available at a high price in licensed outlets such as hotel restaurants and bars, as well as in some leisure clubs such as golf and other sporting clubs. Crime and Police in Dubai Dubai has the reputation for being practically crime free but below you can read about some of the precautions you need to take into consideration when in Dubai. The crime figures in Dubai make very comfortable reading for property buyers, with the incidence of serious crime at between 0.5 and 1 per 100,000 victims, when compared with the international average of 4 to 6 per 100,000 people. However it is still wise to take a few elementary precautions when visiting Dubai as in any country, such as by leaving your important documents it in a safe place. As a tourist you won't be asked for identity by the police so it's not necessary to carry passports and credit card with you unless, of course, you are going shopping. Remember not to flash large amounts of cash in public places and be wary of going with unknown people away from the hustle and bustle of the city. As a Muslim country, Dubai is very liberal but there are a few points for visitors to remember in order to show respect and not fall foul of local laws and customs: During Ramadan, Muslims fast during the day and drinking, smoking and eating in the street is forbidden. Usually separate areas are set aside where foreigners can have a meal or smoke. The local population, both male and female, wear long loose clothes which cover them up entirley and while foreigners do wear light summer clothing, shorts and skimpy clothes are not appropriate in Dubai. PoliceThe police force in Dubai prides itself on the being the most modern force with the most up to date equipment in the UAE. There are 10 police stations in the city, which include Bur Dubai, Jebel Ali, Ports, Nad Al Sheba, Hatta, Al Quasis, Naif, Al Muraqqabat, Al Rashidiyah, and Al Rifaa. Emergency Contact NumbersPolice 999
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