1) I want to buy a property – what is the first thing I should do?
If you are thinking of buying a property in Abu Dhabi, you will probably end up browsing the net endlessly (like I did L) looking for clues on the best investment there is. Most likely, instead, you will then feel wiser contacting a reputed Real Estate Agency (as I did J) to help you out and expedite your shortlisting process.
Out of experience, we suggest you to decide on a budget and consult Domus Italia for property options.
It will be as easy as a walk in the park!
2) Where can I buy a property in Abu Dhabi?
Emirati citizens can purchase a real estate property throughout the territory of the emirate Abu Dhabi on a Freehold title agreement.
Non-UAE or GCC (Gulf Cooperation Countries) nationals are allowed to purchase in real estate properties on a Leasehold agreement in designated areas of the Emirates capital (Reem Island, Al Raha Beach, Al Reef, Saadiyat Island, Yas Island, Hydra Village, Mariya Island, Al Gadeer, Nurai island)
3) How do I know if I am ready to buy a property in Abu Dhabi?
There is some groundwork to do before you start thinking of purchasing of your dream house.
Some savings: once you have browsed the properties you are interested into, established the maximum budget you are ready to pay for your investment.
Financing your mortgage: If you are looking for a support in financing your investment, consider that several banks in UAE are specialized in these operations. You can count on the full support of one of our agent at Domus Italia to gather more details.
Monthly installments: After the deposit has been paid and the transfer of the property is completed, you will have to commit to the monthly payment of your mortgage installments. Most of the banks and financial advisors will tell you that it is suggested not to commit more than a third of your monthly income for the payment of your mortgage. Once do you have the ability to pay a mortgage every month, plus the additional costs associated with home ownership, such as maintenance and utilities?
If your answer to the above questions is yes, they you may well be ready. If not, hang in there and we’ll be waiting to assist you when you’re ready.
4) Are there any hidden expenses I should be aware of?
While you may have the initial amount to book your property, and a healthy monthly income to cover the installments, you may not be aware of other expenses that are required to complete the property title deed transaction or the periodic maintenance of it.
Transfer Fee: When transferring the property from seller to buyer, you should be aware that an average between 1% and 5% of the value of the property will be charged by the developer to the buyer to complete the transaction. Domus Italia agents will assist you to ease your understanding of the various developers charging fees.
Administration charges: Additional charges as the evaluation of the property from the bank (depending on the individual bank) and the mortgage registration fee (AED 2,500 approx.) to be paid on transfer day to the developer.
Agency fee: for a transfer of property you will be expected to be charged 2% of the property value by the agency that helped you in closing the deal (How about choosing Domus Italia for it? J).
When closing a tenancy contract, the tenant will be charged 5% of the agreed yearly rental to be paid upon signing the tenancy contract between parties.
Service Charge: It is the landlord duty to cover the annual periodical fixed expenses to maintain the property in decorous living conditions. These includes but they are not limited to the maintenance of elevators, gardens, pool, gym, cleaning and repair of shared common areas, security, etc.
You can expect to be asked between AED 4 to AED 25 per square foot depending on the area where the property is located in Abu Dhabi.
5) How much is expected to pay for the initial deposit?
The initial amount, that needs to be paid to the developer or to the owner representative to secure the property, is called initial deposit. The amount of the initial deposit varies, ranging from 2% up to 25%.
6) What is the difference between freehold and leasehold?
LEASEHOLD title is a limited time ownership of a property, period after which the possession of the unit goes back to the original and legitimate owner. The ownership of the unit in leasehold does not include the land on which the unit is built on. A leasehold contract has generally 99 years validity.
FREEHOLD title is an unlimited time ownership extended to the land where the unit is built on.
In the Emirate of Abu Dhabi there are plots solely available to Emirati citizens to invest (Freehold). There are several areas in the capital that are also accessible to UAE resident and non-resident foreign investors (Leasehold)
7) Can I ask for financial support in the UAE?
Yes, if you are a resident. Finance can be arranged through overseas lenders if you have assets overseas. Both Emiratis and expatriates can obtain mortgages in Abu Dhabi.
Mashreq Bank, Standard Chartered Bank, United National Bank, Tamweel, Amlak, NBD, Lloyds, HSBC, RAKbank, Abu Dhabi Commercial Bank.
These some of the banks in the country that lend money for on and off-plan properties in the emirate of Abu Dhabi.
8) How much money are the Financial institutions ready to land for my mortgage?
Resident expatriates can obtain up to 75% of the property value. The percentage depend on each Bank and on the specific property you wish to purchase
9) How can I easily rent out my property?
At Domus Italia we have a dedicated team just assisting you in renting your property, being this unfurnished or furnished.
10) How to manage my property without headaches?
Domus Italia can manage any property on your behalf so to set you free from time consuming bargaining, dealing with tenants and maintenance, maximize at the same time its value. Contact our Property Management team at email@example.com.