# Buy flat in Abu Dhabi



## Liotru (Jan 23, 2016)

Hi,

Does anyone have experience to buy a flat in AD instead than renting?

I would like to understand if the mortgage system is similar to the UK and how much deposit is required to buy a property as expat.

Also, I would like to ask if is it possible to use the house allowance received from the employer to pay the monthly mortgage repayments and then sell the flat after decide to leave UAE let's say after 2-3 years time?

Any advise on property market is appreciated!

Thank you.


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## EgyptOverseer (Jan 7, 2016)

I believe only GCC nationals can purchase property in UAE.


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## BedouGirl (Sep 15, 2011)

EgyptOverseer said:


> I believe only GCC nationals can purchase property in UAE.


Not so. It depends on where the property has been built.


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## cowelly77 (Mar 22, 2015)

Ive been looking into this a little the past couple of months. From what ive learned so far, expats can buy in Al Reem, Al Reef and Al Raha, im not sure of anywhere else. Banks require a deposit of between 20 and 40% dependant on the bank, the property and the value. 

In terms of using your housing allowance, ive received mixed feedback and am still unsure, therefore when I buy I will attempt to use it and if im not allowed I will just rent the property in order to cover the mortgage (Or more) and use the allowance to continue to rent. That's the only way around it from what I can see.


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## rsinner (Feb 3, 2009)

cowelly77 said:


> Ive been looking into this a little the past couple of months. From what ive learned so far, expats can buy in Al Reem, Al Reef and Al Raha, im not sure of anywhere else. Banks require a deposit of between 20 and 40% dependant on the bank, the property and the value.
> 
> In terms of using your housing allowance, ive received mixed feedback and am still unsure, therefore when I buy I will attempt to use it and if im not allowed I will just rent the property in order to cover the mortgage (Or more) and use the allowance to continue to rent. That's the only way around it from what I can see.


Apart from the locations above, Saadiyat is also an option.
Just keep in mind that the property market is volatile. Dubai has gone through that Boom-Bust-Boom-Slow Bust cycle already, and Abu DHabi is new to the freehold game (where the expats can buy). From what I can see, prices rose but are beginning to fall. Be aware of the risks of such a non liquid investment. 
Also, keep in mind that the banks here may ask for various kinds of security cheques (not sure if they do so for mortgages) - and bouncing a cheque is a crime. Check souqalmal.com for an idea on rates etc, and dubizzle.com for prices. ALso keep in mind that in general the mortgage interest rates are floating and in the foreseeable future will keep going up.
The min. upfront equity as per central bank rules is 25% from what I know. Plus registration fees + agent charges + other misc. fees

Housing allowance - depends on the company. Some just give you cash. Otherwise the workaround above should work.


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## KM15 (Feb 2, 2016)

I've just moved to Abu Dhabi and had a similar question. I researched a bit and here are my two cents:

1. You can purchase a property in select areas - Al Reem (apartments), al raha (apartments) and Al Reef (villas). You can also purchase in Saadiyat but most of the available ones are under construction. 

2. For an expat, banks will need a minimum deposit of 25% of the value

3. In addition to this down-payment be prepared to pay about 5-7% as various charges upfront e.g. mortgage processing, broker fee, valuation charges etc.

4. You should be able to use the housing allowance to pay for mortgage

5. Rate of interest is usually low in year 1 and increases year 2 onwards. Typically you would need to pay bank charges for early payment / cancellation of loan within 1-3 years.

6. At the time of selling you would need to pay around 1-2% of the value as various charges.

7. If you intend to stay only 2-3 years, perhaps renting is a better option.



cheers


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## rsinner (Feb 3, 2009)

KM15 said:


> 4. You should be able to use the housing allowance to pay for mortgage


Depends on the company policy.

Useful post and pretty accurate otherwise. Just curious - what is the stamp duty/ registration charge for the title deed of the property? Dubai has a 4% charge.


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## AlexDhabi (Aug 23, 2012)

Some thoughts as I considered buying here.
-It depends on your employer if they will give you your housing allowance to pay the mortgage - some do not, others will give you less per month if you are making your own housing arrangements. My own company would give the full allowance (monthly) if required, but I think this is fairly unusual.
-You will need the deposit and if not saved here I recommend you take care what the exchange rate is when bringing money into UAE from other countries. Consider also that under current rules if you have a mortgage you have to redeem it if you are not a resident (i.e. cannot leave UAE and rent it out to pay the mortgage).
-Be aware that "freehold" in UAE is not the same as usually meant elsewhere and there are always maintenance/common area/strata charges and these can be very high and are subject to change at any time.


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