How to buy property in Dubai
Dubai has become a popular place for foreign and expatriate investors. In recent years, changes to the law have opened the Dubai real estate market to foreigners.
Now it’s relatively easy to buy property, provided you have financing. Seek expert advice to help you negotiate local laws and regulations.
Finding Property in Dubai to Buy
one Determine what type of property you are interested in. Foreign buyers often choose to purchase either flats, townhouses, or villas.
which are generally located in secure complexes with common leisure facilities such as tennis courts, swimming pools, and gyms.
Since 2002, when foreign nationals became eligible for property for the first time by royal decree, Dubai has enjoyed a construction boom.
Make sure you look at an area where foreigners are allowed to buy property.
Some of the most famous, luxurious, and costly developments include Emaar Towers, Jumeirah Gardens, International City, and Al Hamra Village.
2 Start searching online.
As with any property search, a good area to start is online. There are many real estate agencies and agents listing properties in Dubai online.
You can buy properties from real estate agents or real estate developers. Real estate agents generally sell resale properties, properties that were built and have previous owners.
Developers are selling unplanned properties that may still be under construction.
3 Contact specialist agents.
If you are looking for help in your search and want to talk to someone with expertise in the Dubai real estate market, it is best to hire a real estate agent to work with.
Real estate agents can help you find properties and explain your options. Large real estate companies will be accustomed to dealing with foreign buyers and will speak English.
Laws and regulations can change quickly in Dubai, so hiring an agent will help you avoid any pitfalls.
Usually, if you hire a real estate agent, you can expect to pay a fee of between 2% and 5% of the value of the property.
You should always check the diploma of anyone you hire. The real estate regulator in Dubai is the Real Estate Regulatory Agency (RERA).
4 Attend property fairs.
Dubai’s real estate market is still relatively young, though growing rapidly. As a result, a significant amount of foreign-bought property is purchased from developers who may not have built the development yet.
Property fairs are a popular way for a builder to present their work and meet potential buyers.
These property fairs are held all over the world, so look for one to visit in a nearby town.
You should always check that the developer you are considering is registered and licensed with RERA.
You can browse a list Finding Property in Dubai to Buy of authorized developers on the Department’s website.
5 Visit Dubai.
Before you think about moving to a property, make sure you spend some time in Dubai. If you are buying a resale property, make sure you view as many properties as possible and ask yourself the same questions as if you were buying properties anywhere else in the world.
If you buy off-plan or the construction is not completed, be sure to visit similar properties of the same developer that are completed.
When you are in Dubai, you will also have access to paper listings in local newspapers and magazines, and you will be able to attend year-round property fairs.
Development and financial requirements
one Holds the required ID and visa. Since an amendment to the law in 2002, foreigners have become much easier for foreigners to buy and rent property in Dubai.
However, you will still need to present a valid passport to prove your identity. You do not need to have any kind of residence permit to buy property, but assuming you want to stay there you will need to take care of this.
The UEA government has a six-month visa for property buyers, called the “Property Owners’ Visa”.
This allows foreign investors to stay in Dubai for six months while investigating the investments.
To qualify for this, the property you are buying must be worth more than 1 million dirhams, which is equivalent to approximately $ 272,000.
You need to buy as an individual, not as a company.
2 Determine the full costs.
You need to make sure that you can afford the property and cover all the costs of the purchase.
When determining the overall cost of ownership, you need to include the purchase price, the deposit, the transfer fees, the real estate agent’s fees, and the potential for exchange rate fluctuations.
It is not legally required, but it is advisable to hire a lawyer to help you negotiate all documents.
Include the costs of a lawyer in your counting.
A new construction property will probably require a land registration fee of about 2%.
3 Obtain a mortgage in Dubai.
Mortgages can be difficult to obtain in Dubai. Mortgages without status/self-certification are not available, and the amount of paperwork and paperwork involved may be to the detriment of those accustomed to a less rigorous system. In some cases, buyers may be required to pay between 20% and 50% of the value of the mortgage in cash.
Dubai mortgages are paid in monthly installments, with the most common 15-year mortgages. Indians cannot mortgage their property in Dubai and cannot borrow. Also, Indian residents are not allowed to guarantee a loan from a non-resident.
The maximum term of a Dubai mortgage plan is 25 years.
Mortgage repayments, combined with any other monthly expenses, must not exceed 35% of your monthly net income.
As exchange control is a complex subject, it is advisable to seek appropriate professional advice before deciding to take out a foreign currency mortgage.
Mortgage rules often change in Dubai, so try to keep up to date with local news and the UEA Central Bank.
Buying Off-Plan Property
one Submit a booking form. If you are buying property off-plan, the first step in deciding on the property you want and securing all financing is to submit a completed booking form. T
his form will summarize the basic terms and conditions of the contract of sale, including payment plan information and personal information from all parties.
You will be asked to send your passport along with the booking form.
Keep in mind that some developers are still selling lease titles, rather than free title deeds. In this case, the title is valid for the period provided in the lease.
Make sure you fully understand the details of the contract and have your attorney check it.
If the property is not yet complete, make sure you know what trust the developer has if it is postponed for any reason.
2 Pay the reservation deposit.
Once the booking document has been approved, you will need to pay for the booking deposit.
The amount will be stipulated in the booking form, but will usually be between 5% and 15% of the purchase price. Developers will not often draw up a formal sale and purchase agreement.
this deposit has been paid and will sometimes charge up to 20% or more.
When you buy off-plan, you need to make sure that the deposits and payments you make are paid into a RERA-approved securities account.
This money is then sent to the developer as the construction work is completed.
3 Complete a formal sale and purchase agreement.
The formal and legally binding contract is the contract of sale and purchase. Make sure this document documents the date the property should be completed and what penalties the developer will incur if it is delayed.
Ask a lawyer to see the contract with you and check all the details, terms, and conditions.
If the property should be furnished, make sure that a date for this will be included in the contract.
4 Transfer the facts.
You must transfer the documents to complete the purchase. This is when you will be asked to pay 100% of the purchase price.
The documents will not be transferred and you will not own the property until you have been paid, so you must have financing.
If the property has been completed, the transfer will take place at the Land Department offices.
If it’s not finished yet, you’ll transfer the documents to the developer’s office.
Then, in general, you will be asked to inspect the property and highlight any final issues that the developer should take care of.
Buying Resale Property
one Make a memorandum of understanding. To buy resale properties in Dubai.
you need to agree with the seller and record this in a Memorandum of Understanding (MOU).
This is a basic document that sets out the terms and conditions, including the date of final purchase. It is not legally required, but it is a necessary first step in buying resale properties.
2 Pay the initial deposit.
After signing the memorandum of understanding, the buyer will have to pay the deposit, usually around 10% of the purchase price.
This deposit is normally non-refundable unless there is a special reason why the seller is unable to advance the transaction.
At this point, you will also have to pay the real estate commission, normally between 2% and 5%.
3 Get the facts.
Once you have entered into an agreement and financing, you can continue and complete the purchase. As an ex-pat, you will be required to pay 100% of the purchase price before the documents are transferred,
just as if you were buying an unplanned development. To do this, you may need to attend an appointment at the Land Department and submit all documents.
The buyer, the real estate agent, and someone from the bank financing the purchase may be required to attend the Land Department meeting.