You may be tempted to use your bank to buy property in Dubai. After all, you’ve probably already done so for real estate transactions, and credit institutions are just as capable as others of carrying out this kind of transaction. Nevertheless, you should consider using local financing. Yes, it is possible to borrow money in the Emirates, but you need to know how to go about it.
To say that Dubai is a Muslim country is to state the obvious. But as such, Islam governs all aspects of life, including bank credit. Sharia law strictly forbids the earning of interest when lending money. This does not prevent the banking sector from being particularly dynamic, and “Islamic credit” is enjoying growing success, even in non-Muslim countries. Why is this so? Quite simply because, in much the same way as a mortgage, an Islamic bank will first buy the property and then ask you to repay it. Unlike Western banks, which will only take ownership of the property in the (unfortunate) event of your defaulting on payment.
How much can I borrow?
Islamic banks in Dubai can finance up to 70% of the price of your property. This amount may vary according to your ability to pay and any loans you may be repaying.
Choosing a local mortgage
If you’re looking for a bank you’re familiar with, choose either a subsidiary of a Western bank or a local bank. You’ll find that interest rates are comparable to those offered by major European financial institutions.
How much does an apartment in Dubai cost?
That’s the question you’re probably asking yourself, and rightly so. To help you make up your mind and give you some “food for thought” for your future investment, we’ve put together a list for you:
– 5-bedroom villa – approx. 410,000 euros
You’ll find them in gated, guarded residences or resorts. This is the place to go if you like peace and quiet and green spaces.
– 2-bedroom apartment in Marina – 160,000 euros
It’s worth noting that apartments in this modern district are systematically sold furnished. So this price includes all equipment already provided, making it easy to rent or live in immediately. As such, it’s the ideal rental investment for young, dynamic tenants.
– 1-bedroom apartment in Palm Jumeirah – 480,000 euros
For beach lovers, this is the place to be, even if the price is commensurate with the location. Many residences overlook the fine sand and offer sports facilities such as dedicated halls and swimming pools.
– 3-bedroom villa at Silicon Oasis – 800,000 euros
With immediate access to all amenities, you’ll have 3 spacious bedrooms, a large office, and also generous green space all around. It’s a quiet neighborhood not far from a supermarket.
– 4-bedroom house in Dubailand – 290,000 euros
Favored by expatriate families, these are fully-equipped residential homes that offer the enormous advantage of a swimming pool at a reasonable price!
We know that buying Dubai real estate, especially in a foreign country with a different culture, can be stressful. That’s why we offer to accompany you every step of the way, to reassure you and explain everything that’s going on, in complete transparency.
We are used to this type of transaction and will do our utmost to assist you efficiently: find the apartment or villa, negotiate the best possible solution according to the constraints, look for a credit formula, draw up the deeds, check with you and make an appointment with the notary, etc. If you choose to place your trust in us for the purchase or sale of your property, we can offer you an attractive management package should you require it.