Gone are the days when the Arab countries had strict rules regarding foreign property ownership. Buying property in one of the world’s fastest-growing economies is the smartest decision you’ll ever make.
However, if you want to buy property in Dubai and get residency, you’ll encounter several complex processes and laws. This can get quite overwhelming for first-time real estate investors.
Lucky for you in this article, we’ll walk you through a few things you must know before buying a property in Dubai.
1. Purpose Of Buying The Property
Knowing the purpose of buying a property helps in finding the one that suits your needs. In Dubai, you can either buy a property for personal use or for investment purposes.
If you intend to live in the property, then you must examine the area and neighborhood thoroughly. However, if it’s for investment purposes, review the different property types and go with the one that offers highest returns.
2. Property Purchasing Process Of Dubai
Every city has different property purchasing processes. In Dubai, you can either buy a property ‘off-plan’ or through the ‘resale’ method. Off-plan properties involve a developer and you’ll have to submit your passport and sign the contract once all agreements are settled.
Resale properties are purchased from a private seller. It’s best if you work with an agent because you can easily be deceived if you lack knowledge. Also, before making an offer or signing the contract, ask about the property’s original price and ensure that it belongs to the reseller.
3. Freehold And Leasehold Areas
If you want to make a well-informed property buying decision, you must know the difference between freehold and leasehold areas.
Before 2000, foreigners weren’t permitted to purchase property in Dubai. But now they can but within certain areas, these areas are known as freehold areas.
As the name suggests, leasehold areas in Dubai are those which do not allow full ownership of certain properties. You can however lease them for a time period between 10 to 99 years.
4. Area And Community Expectations
Now that you know the purpose of buying a property in Dubai and which type, it’s time to inspect selected areas. You may have certain expectations from the area and community where you want your property.
Whether you care for a view, or prefer a socially active neighborhood, or want a more quiet, family-friendly environment, etc. Note down your expectations or explain it to your agent clearly so you can find the perfect location that meets your expectations.
5. Evaluation Of Property And Developer
This is the most crucial thing you must do before cashing in on the property. Your hard-earned money shouldn’t be wasted by the lack of information and research.
Thus, ask your agent to provide a thorough evaluation of the property and its developer. You can even hire professional surveying services. They assess the property and inform you about its shortcomings if any. Apart from that, conduct a background check of the developer to ensure they’re reliable and reputed.
6. Fees And Other Charges
Once all is said and done, you need to know the approximate expenses associated with your property purchase. You will have to pay for certain fees and charges when buying a property in Dubai. A few of those fees and charges that you will encounter are,
- Real estate agent’s commission.
- Dubai land department charges.
- Mortgage registration fee.
- Property registration fee.
- Property valuation fee.
- Contract fee for off-plan property.
Not to forget the future expenses once you buy the property such as renovations, etc.
7. Seeking Expert Advice
Lastly, seek legal and professional advice from industry experts. Although not compulsory, it’s highly recommended to avoid potential scams and risk losing your money. Professionals in the field ensure a smooth, transparent, and safe process for both the buyer and the seller.