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Understanding the Home Buying Process: A Step-by-Step Guide

Do you want to buy a home in Dubai but need to know how to get started? Then don’t worry; this article covers everything you need to know before making the biggest purchase of your life. For most people buying a home is a dream, and they can go to any lengths to fulfill it. But imagine your plight if random brokers charged massive commissions by giving you a bad deal.

Of all the places in the world, you have chosen Dubai, and rightly so; it is the city with the lowest crime rate in 2023. Moreover, the rapidly growing economy, diversification of market, trade, and tourism is tempting. In fact, Dubai is perfect for those looking to live a luxurious life while enjoying their peace. Let’s get straight into the nitty-gritty of the home-buying process below.


A Step-By-Step Breakdown of the Home-Buying Process in Dubai

Buying a house in this decade is a rather costly affair. Furthermore, the endless paperwork, transactions, registrations, and taxes make the process hectic and long. It can get frustrating if you don’t know where to begin and who to chase. Thus, we will make it easier by listing the steps.


  • Figure Out Financial Estimates

Once you plan to buy a home in Dubai, you need to undertake thorough planning of your financial estimates. Check your savings, existing expenditures, other EMIs, utilities, etc. The home EMI loan should be at most 25% of your take-home salary. In fact, if it’s less than 25%, it will be better in the long run.

Therefore, before jumping into getting a home loan, always have a clear idea of your budget. Avoid going over the budget even if your broker shows you ultra-luxurious and splendid-looking houses in prime locations. With time, your family’s expenses will grow, and the EMI may dig a bigger hole in your pocket than you intended.


  • Do Extensive Research

For most people, buying a family home is a one-time deal and the biggest milestone of their lives. Therefore, adequate time for comprehensive research about the new neighborhood, location, and safety is necessary. Rushing through this process because of laxness or excitement may lead to a lifetime of regret.

Some important thing one must consider while choosing the neighborhood for their new home is the crime rate. Observe if children and families are freely able to roam around or if there are suspicious-looking rogue men lurking on the street. Moreover, the neighborhood must have basic amenities like shops, supermarkets, gyms, and parks.


  • Choose Financing Options

Unless you’re a multi-millionaire, you will likely need to check for various financing options to buy your dream home. The prices of real estate have been skyrocketing since the markets opened. Buyers must spend AED 1 million to get a decent home in an exclusive neighborhood. Thus, you can choose to get a mortgage from local banks.


  • Onboard a Real Estate Agent

If you are an expat or foreign resident and want to buy your first home, it is highly recommended to hire an agent. A real estate agent with a registered license will give accurate listings, price ranges, ROI estimates, maintenance, and so on. A seasoned agent can provide a specific idea of every area better than the Internet.

Having a real estate agent will give you an upper hand while negotiating deals with locals and developers. There will always be a chance of new buyers getting duped and tricked by cunning middlemen. An agent will also be able to explain the rules and regulations and ensure you’re going right every step of the way.


  • Search and Inspect Properties


Once you hire an agent, the next step is looking for properties. The first place you can start with is property websites on the Internet. Many informative and genuine sites will offer you an overview of properties in Dubai. You can search for any property, like townhouses, luxury villas, and apartments.

In addition to these listings, you can specify your budget, type of house, ambiance, and amenities to your broker. Once you recognize these properties, meet with the seller or developer for a more in-depth conversation. You can also negotiate if the properties initially meet only some of your expectations.


  • Compare Prices and Make an Offer

Once you have zeroed in on a property and the seller gives you the price, don’t outright buy it. Consider it; look for other properties in the same price range and other bargains. Take your real estate broker’s advice and give a counter price to the seller.

After both parties mutually agree on a price, terms, conditions, and contingencies, they must sign a Memorandum of Understanding or MOU. Furthermore, you can hire a lawyer during the process of conducting due diligence. Make sure that the property is on legal land, has no hidden damages, and the necessary documents are in order.


  • Agreement Between Buyer and Seller


The next step in the home-buying journey is rather dull but a crucial one. Buyers and sellers need to create a sale and Purchase agreement that outlines various aspects like terms and conditions, payment schedule, penalty if payment is delayed, legal actions, and other details.

An advance payment or full payment of the property needs to be done before the papers are transferred to the buyer’s name. The process of transferring ownership is initiated, and you’re good to go. Additionally, if your property is located on lands dedicated to something else, you will also need to get a No Objection Certificate or NOC.


  • Approve From Dubai Land Department

Lastly, after all your documents have been cleared and payments made between the buyer and seller, come to the Dubai Land Department. You have to send your new home agreements and all necessary documents to the DLD for approval. A pro tip is first to send it for approval, and only after the documents are verified and approved should you make the full payment.



These are the basic steps you have to undergo to get the house of your dreams. Once the full payment is complete and all the necessary documents are approved, you will receive the keys to your new home. While the process of buying a dream home may be overwhelming for some, Top Luxury Property makes it easy for every individual to buy a home in a seamless way. You can browse through a variety of properties starting from studio apartments, I BHK to 5 BHK apartments, along with villas, and penthouses. 

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