Everything You Must Know Before Buying a Property in Dubai
Making the right decision is always a great responsibility, especially when it is about buying a property. Property-related decisions should be made with a calm mind and you must be aware of all the small and big facts in relation to the buying process and the property you are planning to buy. If you are someone who is attracted to the real estate market, you must have thought to look for dubai luxury property for sale someday in your life.
If you have the financial means to look for dubai luxury property for sale, you must know a lot of things before making a decision. This blog is all about the considerations one should have while looking for a residential property for sale in dubai. We have started by answering some most common questions that buyers in Dubai have when it comes to best property investmentin dubai. Keep reading.
Information You Should Have About Investing in Dubai Real Estate Market
1.Is it Possible for Visa Holders to Look for Residential Property for Sale in Dubai?
As the expansion of the real estate market in Dubai is getting steadier with the passing days,looking for the best property investment in dubai can be a smart option. However, there have been speculations if a visa holder can buy a property in the capital city of UAE. Well, the answeris yes!
Since 2002, there have been several legal reformations that allowed foreigners to have the right of buying, renting or looking for a dubai luxury property for sale. While there are some rules,and regulations to abide by when a visa holder wants to buy or sell a property, the process has,been simplified over the years.
2.Documents Needed to Buy Property in Dubai
When you decide to buy a property outside of your country, you will probably come across a different set of laws and specifications. So, if you want to invest in Dubai’s real estate market, you got to know the facts involving the details of the documents required for the process.
For individual buyers, it is essential to have a passport when thinking to look for a residentialproperty for sale in dubai. You also need to show evidence that all your bills as applied to your case are paid.
In case you want to apply for a mortgage to buy a property here, it will involve the role of a bank too. It is usually a long but less complicated process when you contact a trusted bank.
3. Best Property Investment in Dubai
Thanks to the fast-developing real-estate market of the city, looking for a dubai luxuryproperty for sale is no more a hectic job, given you are well-versed with all the steps involved in the procedure of making an investment in the real estate sector.
- The buyer and seller need to agree on the terms of the contract and sign the MOY (Memorandum of Understanding).
- The buyer needs to pay a deposit amount, which is 10 percent of the total amount of the property.
- Bith buyer and seller meet at the developer’s office. The objective of the meeting is to get a NOC (No Objection Certificate).
- As soon as the NOC is issued, both the parties should reach the Dubai Land Department office.This is the point when the ownership is transferred from the seller to the buyer effectively.
What is the role of the Dubai Land Department in the process of property deal? Well, it looks into the matter of completion of the purchase price as the manager’s check is paid on the date of property transfer in their office.
- Once all these formalities are over, there’s the signing of a new title deed in the name of the buyer.
- As afore-mentioned, if the buyer gets a mortgage to buy the property, it will involve a bank. And in that case, the buyer will have to abide by the terms of the bank before getting the NOC application.
4.Fees to be Paid in Relation to Buying a Property in Dubai
Like any other foreign country, there are some rules and regulations to follow while looking residential property for sale in dubai, which involved paying certain fees. Here’s a list having the possible fees you might be liable for paying (it might not match 100%, but will give you an idea of how the process is carried out):
- Registration fees: For a property of less than AED 500,000, you would be liable to pay a fee of AED 2000.
- Registration fees cont.: For properties more than AED 500,000, you would be liable to pay a feeof AED 4000.
- Mortgage registration fee: 0.25% of the total loan amount with an additional AED 10 fee
- Mortgage processing fee: 1% or less, of the total loan amount
- Valuation fee: AED 2500 to AED 3500
- Estate agency fee: usually 2% of the purchase amount (depends on your real estate agency in Dubai)
- Oqood fee (if you are buying an off-plan property): 4% of the purchase amount
- Conveyance amount (only if it applies to your case): Around AED 6000 to AED 10000
- Down Payment: generally, 25% of the total property cost
Along with the above-mentioned fees, you also need to pay a land registry tax when buying aproperty in Dubai. It is a one-time tax amount that accounts to 4% of the selling price of the property in consideration. Generally, this amount is divided between the buyer and seller of the property. But in most cases, the buyer pays the fee.All in all, it takes around 30 days to complete a property transaction in Dubai or depending on the real estate agent, mortgage specialist and bank involved. However, one month’s usual time is much time-efficient as compared to other foreign countries.
5.10 Essential Things You Must Know Before Buying a Property in Dubai
Even if you now know the basics of best property investment in dubai, there are a lot of things to understand before making the final call. It is important to have proper research on different areas and we have tried to make this easier for you. Just go through the points mentioned below to understand what’s important to note while playing your real estate investment here in Dubai.
Position of Dubai
Not many know, but Dubai is an integral part of the United Arab Emirates’ GCC state. This indicates the official rule of Sheikh Mohammed bin Rashin Al Maktoum. It was his highness who contributed the most in making Dubai an influential and significant business center across the globe in the 21 st century.
How Authority Works in Dubai
Each country has different governing rules and grounds. Before making an investment in the real estate market of Dubai, you should be aware of the working style of authority in the Emirate. In the year 2006, Sheikh Mohammed bin Rashid Al Maktoum was officially announced the ruler. His highness is among the most authoritative figures in the Dubai government, which has got the primary executive authority in the city.
One should also note how the Dubai government is divided into 20 distinct departments taking charge of dealing with the major issues in the city. These issues involve matters related to safety, security, finance, health system, finance, infrastructure, court, education and the real estate market, which is steadily developing with passing years.
The Dubai Land Department
Have you heard of the Dubai land Department (before reading the information mentioned in the first half of this blog)? If not, it is better you research well about it before finalizing on a property purchase in the city. In simple words, the Dubai Land Department boasts as the executive entity whose function is to control and regulate all the activities in the real estate market. According to the law issued in the year 2013, the purpose of DLD is to cooperate with the promotion, registration and organization of Dubai real estate. It goes parallel to the high international standards. Moreover, it works on attracting more investors from around the globe.
The Freehold Areas in Dubai
Dubai is open for foreigners to invest in its real estate market and you must have got this clear by now. All thanks to the laws issued in 2000, which stated that the city will be more accessible to foreigners interested to own property.However, there are restrictions imposed in certain areas of the city that are called freehold areas.
So, which are the freehold properties? You will find such areas in Um Hurair, Emirates Hill, Jebel Ali, Al Barsha, Nad Al Shiba Al Gouz, Ras Al Khor and others.
The Demographic Structure of Dubai
Another crucial consideration before buying a property in Dubai is the demographic structure of the city. If you are not yet aware, note how Dubai features a combination of different nationalities and ethnicities. The total population of the city is over 2.7 million and around 88% of the population comprises of ex-pats. Almost 77% of the total population accounts for Asians from India, Pakistan, South Asia and other countries.
Prior to making your final decision of property purchase in the city of Dubai, you should know that complete ownership of land or property is restricted to some designated areas., In simple words, not every locality in the city promises you full ownership of a property.
To be more specific, some designated areas impose strict lease time for particular properties. The lease time can be around 10 to 99 years and these areas are known as leasehold areas. Some of the popular leasehold areas in the city of Dubai include Jumeirah, Deera, Discovery Garden and others. As a responsible buyer, you should first check if the area of your choice is freehold or leasehold.
The Expansion of Dubai
One of the paramount reasons why more and more investors are coming forward to put their money in the real estate market of Dubai is the steady rate of expansion of the city. The future of real estate in Dubai looks promising. There has been the construction of some of the most popular towers and buildings in the city and the development continues on a rapid scale. So, your idea of investing in property is a smart move considering the expansion of the city.
The Intention Behind Making Best Property Investment in Dubai
It is essential to consider your true intention behind making the best property investment in Dubai’s real estate market. To understand this, it is suggested to get in touch with a real estate agent or broker who can help you know about the most suitable areas for investment.
If your reason for buying a property in the Arab city is to settle down with the family, you should make a choice accordingly. You should look for properties having close proximity to schools, hospitals, recreational centers and other priority areas as per your lifestyle.
The Finance System of Real Estate in Dubai
As the financing services for property buyers are common wide across countries, there are a few, differences when it comes to real estate agencies and banks. The financing services in the UAE is limited to the banks and companies that were previously authorized by the UAE Central Bank. Taking about most of the home loans in the city of Dubai, the interest rate varies from 3-4%. If you want to qualify for a mortgage, your lender will assess your eligibility grounds. This is done by considering your financial ability to make the repayments. The certain parameters taken into consideration to check the financial stability of a person includes minimum salary, the company you work with and a few other factors.
The Value of the Property’s Location
Seeing the incredible infrastructure of the city, anyone who has financial stability can make up his mind to buy a property in Dubai. Another reason why investors get lured to buy property here is the fast expansion of the city. However, it adds value to the investment when proper research is carried out about the area of the property into consideration. So, if you are planning to make a real estate investment in Dubai, make sure to have all the factual information about the property developer.
Talking about the other regions of the Middle East, Dubai is comparatively safe. The police system and complete security system in the city is highly efficient. So, most investors collaborate with the most well-known developers in the city, such as Damac or Emaar.
In a Nutshell
We hope this blog helped you gain all the information necessary to have while looking for best property investment in dubai. Our real estate agents at Top Luxury Property can help you find the best properties from our list of most recommended developers and properties.