Question: I’ve saved for years and finally bought my first off-plan apartment in Jumeirah Village Circle (JVC) in Dubai. The project is still two years from handover, but with stories about delays and defaults, I’m feeling anxious. How can I protect my investment and know my money is safe? SG, Sharjah
Answer: First of all, congratulations on reaching this milestone. Buying your first property, especially off-plan, is a big step and one that offers great potential but understandably comes with some concerns.
Your protection starts with the escrow law. Under Law No. 8 of 2007, every off-plan project in Dubai must have a Real Estate Regulatory Authority-approved escrow account. Your payments should go into this account, not directly to the developer.
This ensures that your money is only used for that specific project’s construction. If the project fails, the Rera can step in to refund buyers from the escrow.
Before buying any off-plan unit, you should always carry out due diligence. You can check the developer’s reputation on the Dubai Rest app or the Dubai Land Department’s website. Look for their completion history, past delays or disputes and quality of delivered projects, among other things.
All developers with strong track records tend to stick to delivery timelines and quality. In fact, some even deliver early, so you shouldn’t worry about things that (hopefully) won’t happen.
Monitor the project’s progress and stay in regular contact with the developer. Request construction updates, site visit opportunities, and DLD status reports. Many projects are now linked to the Mollak system, which tracks service charge transparency and building progress. These are found on the DLD’s website.
Other things to consider are post-handover costs. Service charges in areas like JVC can range between Dh12 to Dh16 per square foot, so factor these into your long-term affordability. Also, confirm if your developer offers a post-handover payment plan and what interest (if any) applies.
If at any point you are not satisfied or if something feels off, especially if the construction halts or communication drops, file this concern with the Rera. They have taken action in the past, even freezing or cancelling projects that fail to meet standards.
Your anxiety is normal but Dubai’s off-plan market today is far more regulated than in the past. You’ve done your part by buying smart, just remain engaged and informed.
Q: I’m a European expat, recently retired, and want to buy an apartment in Dubai Marina to live in part-time and rent out when I’m back home.
Can I own freehold property and how will this affect my visa and estate planning? BR, Dubai
A: I think this is a situation that an increasing number of retirees and semi-residents are exploring. Dubai’s property market is maturing and now offers clear ownership structures and residency pathways for expat investors.
As a European, you can buy freehold property in Dubai’s designated zones like Dubai Marina, Palm Jumeirah, Downtown and JVC, among many other areas.
Ownership is 100 per cent yours, and you can live in, rent out, or sell the property at will.
Owning property gives you certain visa options. There are two main options available:
The two-year property visa requires a property valued at Dh750,000 ($204,220) and the 10-year golden visa is for investments above Dh2 million, even across several properties. These visas are renewable and allow several entries, which suits part-time residents well.
There are a few things to consider for estate planning and inheritance.
By default, the UAE follows Sharia inheritance law, which may not align with your wishes. To protect your property and ensure it goes to your intended heirs, register a non-Muslim will through the DIFC Wills Centre or Dubai Courts. You can specify executors, beneficiaries and asset distribution clearly.
Dubai Marina apartments can fetch annual gross rental yields of 6 per cent to 8 per cent, depending on size and views. For short-term rental, you will attract even higher returns, but need to apply for a holiday home license from the Dubai Department of Economy and Tourism.
Watch: Here's what Dh1 million gets you in Dubai's property market today
Remember to also budget for service charges (Dh16 to Dh20 per sq ft), DLD transfer fees (4 per cent), property management fees if you won’t be residing full time and any unexpected maintenance issues.
Owning property in Dubai today is more transparent and advantageous than ever. With the right legal planning, it can support your retirement goals while giving you a second home.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
The specs: 2018 GMC Terrain
Price, base / as tested: Dh94,600 / Dh159,700
Engine: 2.0-litre turbocharged four-cylinder
Power: 252hp @ 5,500rpm
Torque: 353Nm @ 2,500rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.4L / 100km
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The specs
Engine: 3.0-litre 6-cyl turbo
Power: 435hp at 5,900rpm
Torque: 520Nm at 1,800-5,500rpm
Transmission: 9-speed auto
Price: from Dh498,542
On sale: now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
KLOPP%20AT%20LIVERPOOL
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Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
Mohammed bin Zayed Majlis
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
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WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
UAE jiu-jitsu squad
Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)
Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)
Brief scoreline:
Liverpool 2
Mane 51', Salah 53'
Chelsea 0
Man of the Match: Mohamed Salah (Liverpool)
'Cheb%20Khaled'
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AT%20A%20GLANCE
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
