Every investor in the UAE should research things to know before buying property in Dubai. As the UAE’s real estate industry’s golden child, there is much interest globally in investing in Dubai’s property market. But don’t buy quickly because this UAE market stands in a league of its own. Making the best investment in Dubai with maximum capital appreciation takes time and careful consideration. Additionally, many people see Dubai as one of the best countries to live hence they want good investments and somewhere to call home. So, this guide looks at what to know and tips for entering Dubai’s property market.
Things to Know Before Buying Property in Dubai
1: Purchasing Off-Plan Property
Off-plan property is big business in Dubai and no wonder. Some buildings, display stunning architecture that puts the stamp on Dubai’s world reputation as a real estate market to be reckoned with. Typically, deposits between 10 to 25% puts a hold on an off-plan property and gets the purchase process agreement drawn up. Once this is done, the Dubai developer and the buyer are locked into the deal, which can be completed quickly. For virtual property sales, off-plan properties fair well with people buying from all over the world.
2: Purchase Resale Property
Resale property has different sales processes. The first aspect is the MOU, Memorandum of Understanding. This details all the agreed stipulations of the sale, and the process is sealed with a small deposit, usually 10%. Timelines for resale properties vary depending on the paperwork and if finances are in place, but the transfer of ownership happens typically within two months at the most.
3: Invest in Dubai Rental Properties
Dubai city does well with investors looking for rental properties, but do research local rent yields. Additionally, it matters whether investors target holiday rent markets or long-term contract markets. For example, downtown Dubai is famous for tourism. When it comes to rental properties in Dubai , the community drive in the market is mainly from couples or single working professionals; hence choose apartments rather than houses. Finally, don’t forget to research shopping, transport, and amenities links in whichever area of Dubai you choose.
4: Buying Freehold or Lease Hold Real Estate
Dubai city separates into freehold areas and leasehold communities that determine who can buy there. Some areas in Dubai are freehold, and any foreigner can purchase property, while others are non-freehold and only open to registered GCC citizens. In addition, there are also leaseholds in Dubai up to 99 years.
5: Financing, Fees, and Important Costs
Do not just think about the property price when determining your budget. There are additional purchasing and mortgage costs and fees to pay, including mortgage fees, agency fees, etc. For closing costs, add roughly 8% of the property price. Consider furnishings and utility connection prices as well. Also, factor in yearly service and land maintenance costs and fees. These vary according to the real estate development, its amenities, and whether you purchase a villa or apartment in Dubai. Yearly service charges are payable to the Dubai Land Department. According to the RERA service charge and maintenance index, the department bases the square foot land fees.
6: Know the Sales Procedures
Buying real estate in Dubai can be daunting, but one way to seek the peace of mind is to know the sales procedure. Whenever client buy Dubai property through us, we give payment plan sand outline the process before the buyer agrees to the sale. Hence, you do not get any hidden surprises. In addition, we handle the sales procedure and ensure you are informed every step of the way.
7: Don’t Forget Liquidity When Buying
Buying is the most exciting part of the real estate market in Dubai, but also consider the future when you might want to sell. Liquidity is an essential part of any wise property investment. While Dubai offers plenty of it, thanks to the international and domestic markets, some areas fair better than others for resale potential and value. In addition, amenities and yearly service charges, locations, and property conditions can affect your real estate liquidity potential.
8: Real estate and Residency Programs
Specific visa programs are open to property buyers in Dubai, and if you need to live there, it is worth enquiring about how to be resident. For example, properties valued at 1 million AED or above can get six month or two-year visa permits dependent on meeting specific criteria. Additionally, you might be eligible to apply for a five-year visa for properties above AED 5 million that you pledge to keep for at least three years and have no mortgage attached.
9: Real Estate Amenities
Look hard at amenities within the development or area you plan to buy. For example, while that large, all-inclusive, state of the art gym might inspire you to become more fit, but is it a long-term passion? Likewise, many child-friendly developments encourage learning, and fun, but if you don’t want a family within the next ten years, is it worth the money?
10: Property Evaluation
There are two options for evaluating property to ensure it is worth your time. The first is an evaluation from the agent and developer, or go independent by hiring your own evaluation company. They will assess all aspects to make sure the property’s value is within market expectations.
Also About Dubai
Where to Buy Property in Dubai: If you want to know the best places to buy Dubai property, get ready to be impressed. Home to stunning buildings, Dubai offers unique neighbourhoods aside from an architectural showground. These days, many ex-pats buying homes enjoy an unparalleled lifestyle, and Dubai attracts many real estate investors looking at places for mid to long term property investment.
Property in Dubai: Dubai is one of the most dynamic cities in the Middle East, with many investments and family homes, apartments, penthouses, and duplexes. Browse our portfolio of apartments and villas for sale in Dubai. Each listing contains everything to know, including price, location, home features, reasons to buy property and contact details to find out more via email or arrange viewings. Alternatively, follow us, Spot Blue real estate agent, on Facebook to stay up to date with more things to know when buying property in Dubai.