The Government of UAE helps citizens with the costs of building a new home through a refund program. This guide provides all the key information needed to understand and apply for the refund.
How the Refund Works
The refund reimburses a percentage of the construction expenses for eligible homeowners. For apartments, up to 30% is refunded with a maximum of 500,000 AED. Villas and larger homes qualify for a higher 50% refund capped at 500,000 AED as well.
Expenses like materials, labor, permits, and design fees count towards the refund amount. Homeowners have 2 years from receiving their building permit to apply.
Eligibility Rules
To qualify for the refund, applicants must be a UAE citizen with Emirati parents/grandparents. The home must be their main place to live, not a vacation house. Applicants only need to own at least half of the property.
Income or existing assets are not considered. Any Emirati planning to build their family home can benefit from this support program.
The Application Process
Applying early is important to receive the refund smoothly. Approval is needed before construction begins. Documents like design plans are submitted initially.
Forms are updated as work progresses – when foundations are laid, walls go up, the home is enclosed, and finally completed. Receipts for all costs spent on building must be retained.
It takes around 4-6 months to process completed refund requests if paperwork is fully submitted and correct. Reapplying if anything is missing causes delays.
Understanding Usage & Refund Linkages
Primary residency for 3+ years post-handover safeguards full refund retention. Short-term rentals are permitted, but permanent leasing voids refund eligibility.
Partial reimbursements apply proportionately if sold within 3 years, calculated quarterly. Relocation approvals consider location, employer obligations and dependent family responsibilities.
Strict adherence to residency obligations amid dynamic lifestyle changes necessitates foresight and communication with authorities for flexibility when needed.
Program Requirements
To qualify for the full refund amount homeowners must reside in their new property as their main home for a minimum of 3 years after completion.
Selling or moving within 3 years means reimbursing part of the refund proportional to the time not lived in. Exceptions apply if relocation distances are large for work purposes with approval.
Short-term rental of rooms is fine, but long-term leasing voids the home as the owner’s primary residence and impacts eligibility.
High quality documentation with detailed cost breakdowns, designs, and payment proof is essential throughout the process.
Conclusion
The UAE government’s refund program makes the dream of Emirati home ownership more financially achievable. By offsetting 30-50% of construction expenses, significant costs are covered to incentivize and support the community. With thorough planning and accurate documentation at each stage, applicants have a very good chance at being approved for the refund.
FAQS
If sold within 3 years of completion, a portion of the refund amount needs to be returned, proportional to the amount of time not resided in as primary residence.
Yes, joint ownership with other UAE national family members is allowed as long as the applicant owns a minimum 50% stake.
Most refunds are processed within 4-6 months of submitting the final completion documents, assuming all paperworks have been accurately provided on schedule.
Rejected applicants have the option to request reconsideration by providing any missing documents or clarifications within 30 days of rejection notice.
