Azizi Developments

Dubai has been considered a city of luxury real estate for more than a decade. Penthouses and mansions here attract wealthy investors from all over the world. Every year brings new properties with staggering price tags, sometimes it seems that there is no price ceiling at all. Many buyers come to the UAE specifically for luxury seafront villas and new mansions with a variety of amenities appear in the city on a regular basis. Let’s take a look at three biggest mansions in Dubai.

• The Palm Jumeirah Villa
• Jumeirah Villa in Umm Suqeim
• Emirates Hills Villa

The Palm Jumeirah Villa

Area: 33,300 square feet (3094 square metres)

Price: 280,000,000 AED ($76, 231,960)

In April 2022, this custom-built mansion was described in the media as the most expensive villa sold in Dubai. An unknown buyer purchased the luxurious house with ten bedrooms, panoramic windows, one indoor pool and several outdoor ones for 280,000,000 AED ($76,231,960). The building occupies two standard villa plots.

The house was built on the northern side of the man-made Palm Jumeirah Island right on the beach; its panoramic windows overlook the Persian Gulf and Dubai skyscrapers. The house features its own 70-metre-long beach.

The interior of the mansion is decorated with Italian marble. In addition to living rooms, there is a wine cellar, a cinema, an aquarium, a gym, an outdoor terrace with a rooftop pool, and a separate spa complex with a steam bath, massage rooms, and a hair salon.

Jumeirah Villa in Umm Suqeim

Area: 40,000 square feet (3717 square metres

Price: unknown

The massive floor area of this luxurious two-storey mansion in the prestigious Umm Suqeim area is used extremely efficiently. The house has seven spacious bedrooms; two of them are located in a separate guest section, as well as guest bathrooms. The mansion also has a large family living and dining room overlooking the garden. A considerable part of the house is occupied by spacious rooms with comfortable oriental-style sofas and tables; these rooms are perfect for both private and business meetings. Some lounge areas have expensive massage chairs.

The mansion provides everything to host a large number of guests at any time of the year. The villa is designed to accommodate staff as well: there is a large kitchen on the ground floor where an entire team of cooks can work simultaneously. There is another kitchen in the garden. There are also separate staff rooms accommodating up to five people.

The villa does not have a private beach, but the owner can show off the impressive outdoor swimming pool. There is a tennis court on the plot adjacent to the mansion, and a gym inside the house.

Emirates Hills Villa

Area: 45,000 square feet (4180 square metres)

Price: 175,000,000 AED ($47,644,975)

Despite its impressive size, the mansion only has seven bedrooms and as many bathrooms. The building has a family living room with a dining area and similar rooms for guests. The house also has a cigar lounge, a game room, an office, a gym, a spa with a hammam and massage rooms, a beauty salon, a wine tasting room, and even a car showroom where the future owner can display sports cars. The mansion also has an equipped cinema room, a hall featuring a floating staircase, and a full-size grand piano.

The ground floor houses an indoor pool with a juice bar and lounge area. On the land plot, there is a garden and a large outdoor pool, a hot tub, and a summer kitchen. Another lounge area with a bar and a designer garden is located on the roof of the mansion. This contemporary villa is perfect both for comfortable everyday life and for glamorous parties.

In a Nutshell

Dubai boasts dozens of mansions, many of them almost as large as those included here. You’ll find villas with an area over 50,000 square feet (4645 square metres) on aggregator websites. However, these projects are still in the design and development stage.

On 1 May 2019, a law in the UAE changed foreigners' rules for buying real estate. From that moment on, not only houses but also land became available to them in the investment zones of Abu Dhabi. This was yet another step towards the relaxation of the Emirati rules regulating real estate ownership by citizens of other countries. It is still far from total freedom: foreigners can still own villas and flats only in certain areas that are unavailable in all emirates.

Read on to learn more about the conditions of owning a property in the UAE for foreigners and the main advantages of purchasing Emirati real estate. 

• Why Does the UAE Real Estate Market Attract Foreigners?
• What Do Expats Need to Know About the Emirati Real Estate Market?
• Conditions for Owning Emirati Real Estate for Expats
• Specifics of Real Estate Transactions in Different Emiratesх
• How to Conclude a Contract in Dubai?
• How Do You Conclude a Contract in Abu Dhabi
• How to Conclude a Contract in Sharjah?

Why Does the UAE Real Estate Market Attract Foreigners?

The United Arab Emirates is one of the significant points of the global real estate market. The volume of transactions is growing year by year. No wonder this sector is one of the drivers of the local economy, which has long been focused on withdrawal from oil dependence.

A lot of work is being done for this in the UAE. The main measures include:

• Beneficial tax system. Property owners pay tax once after the relevant real estate deal is completed. The rate depends on the emirate. For example, it is 4% in Dubai and 2% in Abu Dhabi. In actual practice, this amount is split equally between the seller and the buyer. Expenses, of course, do not end here; many fees accompany the ownership transfer, but they are all paid only once. There is no annual property tax in the UAE. However, there is a maintenance fee. It varies from $15 to $60 per square metre. This money is used to maintain public areas, make significant repairs, and maintain sports facilities and other infrastructure.  
• Improving the level and quality of life. The UAE is renowned for its world-class infrastructure and excellent amenities. Modern transport, first-class healthcare and education, and plenty of recreational options – all ensure the inflow of expats and tourists into the country. As a result, their interest in renting is growing, increasing the profitability of local real estate investments. 
• Improving the quality of real estate. Seeking to attract the buyers, the developers are constantly raising the bar. Most properties are delivered completely ready for use. They are also equipped according to the latest technology: many flats look the same as on the pages of design magazines. 
• Residence permit. In Dubai, you must buy a property worth 750,000 dirhams ($204,195) or more to obtain a two-year renewable resident status. Real estate worth over 2,000,000 dirhams ($545,000) gives access to a five-year golden visa. If you purchase a property for this price in Abu Dhabi, you will get a ten-year residence permit if you do not sell the property for the first two years of ownership. You can find detailed information about obtaining a residence permit for owning real estate in the General Directorate of Residency and Foreigners Affairs. 

Photo: Ondrej Bocek (Unsplash)

What Do Expats Need to Know About the Emirati Real Estate Market? 

Investing in Emirati real estate has many benefits. However, this does not mean that housing in the UAE is free-floating and that access to it is unlimited. Despite the size of the market and the signs that the country's government has big plans for this sector, expats still cannot buy houses or flats everywhere.

The thing is that absolute ownership is available only to residents. Citizens of the Gulf countries have slightly fewer rights. For everyone else, there are several legislative restrictions. Thus, in some cases, foreigners can own buildings but not land. In others, they cannot get an entire ownership property. Only in some specific cases, established by law, can non-citizens of the UAE and the Gulf countries purchase real estate based on full ownership.

In this sense, Dubai offered the best conditions for a long time. However, in 2019, the abovementioned amendments brought some balance between Abu Dhabi and Dubai, bringing the current regulations in these emirates to ensure consistency.

Conditions for Owning Emirati Real Estate for Expats 

In the UAE, foreigners can own real estate under the following conditions:

• Absolute ownership. This is the right of ownership which includes the ability to hold and dispose of the property freely. It is only available within the so-called freehold investment zones in the UAE. 
• Musataha. A musataha agreement entitles the holder to use, construct, and redesign the property within the period specified in the contract.
• Usufruct. This agreement allows you to use the property without altering or redesigning it. The usufructuary must return the property in its original condition except for everyday wear and tear.
• Long-term rental. The parties agree on the terms of ownership and use of the property. The period is at least 25 years.
• Ownership. Foreigners can have property rights to residential property for 99 years. This right applies to the purchased flats and villas, which they can use as they like, but not to the land.

Specifics of Real Estate Transactions in Different Emirates 

Rules of owning a property vary depending on the emirate. 

Abu Dhabi

In Abu Dhabi, all kinds of property rights are available to foreigners:

• Ownership of entire floors or individual flats in the building and villas for 99 years without land rights.
• Extendable musataha for 50 years.
• Usufruct for up to 99 years. 
• Long-term rent for at least 25 years.
• Absolute ownership (freehold) in certain investment zones. There are nine of them in Abu Dhabi: Yas Island, Saadiyat, Al Reem, Al Maryah, Lulu, Al Raha Beach, Saih As Sidirah, Al Reef, and Masdar City.

Amendments to the law "On Real Estate" of 2019 stipulate that usufruct or Musataha for more than ten years give their holders the right to use their property as they like, including pledging it, without the landlord's consent. At the same time, the owner cannot enter a pledge agreement without the usufructuary or musataha holder's permission. The parties can always agree otherwise and include the relevant terms in the agreement.

Specifics of Real Estate Transactions in Different Emirates 

Rules of owning a property vary depending on the emirate. 

Abu Dhabi

In Abu Dhabi, all kinds of property rights are available to foreigners:

• Ownership of entire floors or individual flats in the building and villas for 99 years without land rights.
• Extendable musataha for 50 years.
• Usufruct for up to 99 years. 
• Long-term rent for at least 25 years.
• Absolute ownership (freehold) in certain investment zones. There are nine of them in Abu Dhabi: Yas Island, Saadiyat, Al Reem, Al Maryah, Lulu, Al Raha Beach, Saih As Sidirah, Al Reef, and Masdar City.

Amendments to the law "On Real Estate" of 2019 stipulate that usufruct or Musataha for more than ten years give their holders the right to use their property as they like, including pledging it, without the landlord's consent. At the same time, the owner cannot enter a pledge agreement without the usufructuary or musataha holder's permission. The parties can always agree otherwise and include the relevant terms in the agreement.

Sharjah

According to the Executive Council Resolution No. 26 of 2014, foreign nationals and companies do not have the right to own real estate. This emirate only has the right to use it for 100 years after registering it in the Sharjah Real Estate Registration Department (SRERD).

However, even such limited ownership rights are not available everywhere. The resolution stipulates explicitly that the usufruct must be located within the territories designated by the authorities of Sharjah.

These are the current conditions for purchasing real estate in 2023. However, it is possible that Sharjah, in line with the neighbouring emirates, will also soften the rules of foreigners' property ownership. For example, Law No. 2/2022, which came into force in 2022, reproduces the old one regarding the application of ownership rights exclusively to citizens of the UAE and the Gulf countries. Still, it also provides some exceptions; ownership may occur in certain areas and projects specifically determined by Sharjah authorities. 

Some experts believe this could eventually grant property rights to foreign citizens within the same investment zones. However, for now, these are just expectations and forecasts.

Other Emirates

Regarding the UAE real estate market, we usually talk about Dubai, Abu Dhabi, and Sharjah since they are three of the country's most popular regions. However, limiting the purchase options only to them is not right. The fast-growing markets of other emirates also have their advantages:

• Ajman is the smallest region, but it is still highly promising. Of course, foreigners have few opportunities because Gulf citizens cannot buy real estate in all areas. Only locals can own houses and flats in Meshairef, Al Hamidiyah, and Al Jurf. As for property rights for expats, they can buy properties in freehold zones. Real estate transactions are registered with the Department of Land and Properties (DLP). 
• Ras Al Khaimah. Generally, absolute ownership is not allowed for foreigners in this emirate. Freehold zones are again the exception. There are four of them: Mina Al Arab, Al Jazirah Al Hamra, Al Jarafat of Al Muairidh, and Al Koof of Al Dhait South. Transactions are concluded at the local Land Department. 
• Fujairah. Absolute property ownership rights for foreigners in this emirate are currently under discussion. An exception is only made for some properties, such as those in Al Jaber Tower. In other cases, property is available to non-citizens of the UAE or the Gulf countries only on a rental basis. 
• Umm Al Quwain. Here, expats and non-GCC nationals can own property (but not the land) in designated investment areas on a leasehold basis for up to 99 years.

Dubai is a city of expatriates, drawn here to work and live from all corners of the world. Overall, living in Dubai can be quite expensive. Expatriates with lower incomes may need to adopt a more frugal lifestyle, while those with higher incomes often opt for budget-conscious choices and sustainable consumption. On the other hand, some individuals indulge in a luxurious lifestyle, residing in upscale properties, dining at expensive restaurants, and shopping at branded boutiques. If you're contemplating a move to Dubai, it's beneficial to familiarise yourself with the primary monthly expenses and assess how they align with your budget in advance.

Read on to find out about the cost of living in Dubai for a couple.

• Housing
• Utilities
• Healthcare
• Transport
• Entertainment
• Education

Housing

Renting

Expatriates who are unable to purchase real estate in Dubai often opt to rent a house or apartment. In some cases, the expatriate's employer may offer a housing allowance to assist with these costs. Otherwise, the expenses must be covered from one's personal funds. Naturally, housing expenses constitute the most substantial portion of an individual's budget. 

In the UAE, tenants typically have the following responsibilities:

• Make a one-time payment for rent covering six or twelve months.
• Pay a 220 AED ($60) fee for registering the lease through the online EJARI service.
• Pay a security deposit to the property owner equivalent to 5% or 10% of the annual rental rate.
• Pay a commission fee to the real estate agency, ranging from 2% to 5% of the annual rental rate.

When it comes to rental rates, they vary depending on the type of property and its location. A luxury apartment in a central Dubai high-rise building will be more expensive than an apartment located on the outskirts.

There are some relatively affordable areas for individuals seeking more budget-friendly rental options. For instance:

• In Deira, you can rent an unfurnished studio for approximately 15,000 AED ($4,000) per year. Furnished one-bedroom apartments start at 42,000 AED annually ($11,400).
• Bur Dubai offers unfurnished studios for around 16,000 AED per year ($4,300), while two-bedroom apartments cost 36,000 AED annually ($9,800).
• Dubai Sports City has studios for rent at approximately 26,000 AED per year ($7,000), while two-bedroom apartments in this area are priced at 42,000 AED per year ($11,400).
• In Dubai Silicon Oasis, rental rates for studios are around 24,000 AED per year ($6,500), and you can find two-bedroom apartments for 45,000 AED per year ($12,200).
• For those considering International City, a studio typically rents for an average of 21,000 AED per year ($5,700), while more spacious three-bedroom apartments cost around 80,000 AED annually.

Rental expenses should also factor in the cost of furniture, which can be a significant part of your budget. While some flats, particularly in upscale areas, come fully furnished with household appliances, there is a more abundant supply of unfurnished or partially furnished flats on the market. Experts estimate that it costs around 10,000 AED ($2,700) to purchase all the necessary furnishings for an apartment, including furniture.

Purchasing 

Purchasing real estate in the UAE grants you the right to obtain a two-year residence visa, which can be extended subsequently. This type of visa is granted to individuals who own properties valued at a minimum of 750,000 AED ($204,100). Additionally, five- or 10-year golden visas are available for those who invest in properties worth 2,000,000 AED ($544,500) or more. 

Foreigners can attain full property ownership exclusively in freehold areas. Dubai boasts more than 60 freehold areas, encompassing popular neighbourhoods like Downtown, Dubai Marina, Palm Jumeirah, Business Bay, and others. Leasehold areas also exist, allowing foreigners to rent real estate on a long-term basis, for up to 99 years. In these instances, foreign tenants do not possess ownership rights. Consequently, they may only lease the property to another party with the explicit consent of the property owner, who must be a citizen of the UAE or another Persian Gulf country. Nonetheless, leasehold properties tend to be more cost-effective, and lease extensions are generally an option. Nevertheless, expatriates typically prefer residing in freehold areas.

Several factors contribute to real estate prices in Dubai: 

• Property Type: Whether it's a studio, a spacious flat, a townhouse, or a villa.
• Property Size: This includes the total area and available amenities such as a garden, parking, or swimming pool.
• Location: Properties located in affordable or prestigious areas, proximity to the sea, and other factors influence prices.
• Infrastructure: The quality of the residential complex's infrastructure, including landscape design and amenities like gyms, pools, playgrounds, etc.
• Transport Accessibility: The convenience of roads in and out of the complex and the availability of public transport also impact property prices.

Buying off-plan real estate is a popular option as it tends to be more cost-effective than flats in completed buildings. However, it may not be suitable for those in need of immediate accommodation. In such cases, purchasing a ready-made property is advisable, as these units typically come fully finished, furnished, and equipped with appliances. 

One-bedroom flats are among the most popular residential properties in Dubai, with options ranging from 30 to 70 square metres in size. These flats can also be found on the secondary market. For example, prices for flats in the Surf Creek Beach residential complex in Dubai Creek Harbour start at 900,000 AED ($245,000), while units in Merano Tower in Business Bay are available from 680,000 AED ($185,000). Luxury flats in areas like Palm Jumeirah have higher starting prices, typically around 950,000 AED ($250,000), while similar units in Downtown Dubai start from 600,000 AED ($163,000).

Many foreigners opt to rent villas in Dubai, and there's a range of options available. It's not just elite villas; you can find relatively affordable houses starting at a minimum of 1.25 million AED ($340,000). Dubai also offers various townhouses to suit different budgets, with prices starting at 735,000 AED ($200,000). On average, townhouses typically cost between 1.5 million and 2 million AED ($408,000 to $545,000). 

You can purchase a house with a mortgage in Dubai, but there are certain requirements to meet. To be eligible for a mortgage, you must be between 21 and 65 years old, have a resident visa, and provide proof of income. The minimum down payment required is 25% of the property's value. Before applying for a mortgage, carefully assess your budget and financial resources. Banks typically require that your mortgage payment is no more than 50% of your monthly income for approval. Additionally, consider the extra costs associated with the transaction, which can range from 6% to 9% of the property's value. 

In the summer of 2023, real estate experts reported that Dubai was undergoing a significant increase in property sales. Some forecasts suggest that the high demand for housing in the UAE will continue to rise in the coming years.

Utilities

Water and Electricity

In Dubai, water, drainage, and electricity bills are calculated based on metre data. The more you consume, the higher your bill will be. Therefore, the type and size of your property have a significant impact on the amounts reflected in your bill. For instance, a spacious villa with a swimming pool, air conditioners running 24/7, and a lawn irrigation system will consume much more water and electricity than a studio apartment, for example. 

Another factor to consider is the number of occupants. A couple living together, for example, can expect to spend a minimum of 550 AED ($150) on water and electricity. You can determine the exact amount using this tariff calculator.

Tenants are also responsible for paying a monthly housing fee, which amounts to 5% of the property's rental value.

Mobile Phone and Internet Expenses

There are two primary mobile communication service providers in the UAE: Etisalat and Du. The cost of a SIM card can range from 55 to 147 AED ($15 to $40). A standard monthly plan priced at 360 AED ($100) typically includes internet access at speeds of up to 250 Mbit/s, over 200 TV channels, and free calls to local landline numbers. More advanced plans can go up to 990 AED per month ($270).

Regarding home internet connections, you can expect to pay approximately 370 AED per month ($100).

Food

Dubai offers a wide range of restaurants to suit any budget. A combo lunch at a fast-food restaurant typically costs around 35 AED ($9.5), while a three-course dinner with wine for two at a mid-range restaurant will set you back about 250 AED ($68). If you're in the mood for coffee, a cup of cappuccino goes for around 20 AED ($5.5), and a glass of beer is approximately 42 AED ($11).

Expats in Dubai can purchase alcohol, but they are required to have a special licence, which is now available free of charge. Alcohol is sold only in specific shops and tends to be relatively expensive. For instance, a 0.75-liter bottle of wine typically costs around 60 AED ($16). 

Here are average prices for some common food items at local supermarkets: 

500 g of wheat bread is 6 AED ($1.60).

1 kg of potatoes is 4 AED ($1).

1 litre of milk is 7 AED ($1.90).

A dozen eggs is 12 AED ($3.30).

1 kg of apples is 9 AED ($2.50).

1 kg of oranges is 7 AED ($1.90).

1 kg of bananas is 7 AED ($1.90).

1 kg of tomatoes is 6 AED ($1.60).

1 kg of onion is 3 AED ($0.80).

1 kg of chicken fillet is 32 AED ($8.70).

1 kg of beef is 39 AED ($10.60).

1 kg of rice is 8 AED ($2.20).

1 kg of local cheese is 43 AED ($11.70).

A bottle of water (1.5 l) is 2 AED ($0.50).

A bottle of home-brewed beer (0.5 l) is 13 AED ($3.50).

A bottle of imported beer (0.33 l) is 24 AED ($6.50).

A pack of cigarettes is 23 AED ($6.30).

Waitrose and Spinneys are known as upscale supermarkets in Dubai. If you're looking to save money, consider shopping at the market in Deira, where you can find a wide range of items, including fruits, vegetables, meat, and other food products.