How to buy a property in Dubai
Any individual of any nationality can purchase a property in Dubai – whether living overseas or resident in the UAE. There is a huge choice of properties available to buyers in the designated freehold areas of the emirate – from glamorous apartments in high-rise towers near the Burj Khalifa and in the popular Dubai Marina, to spacious villas in family-friendly master developments and international golf communities.
Buying a property in Dubai has lots of advantages and is surprisingly easy too. It’s now simpler than ever to research about developers and with new technology constantly being introduced, customers can purchase with confidence. Virtual tours, easy payments and transparent, streamlined procedures, along with convenient contact with developers via apps and special secure platforms throughout, allow for ease of investment and property management thereafter. The Government of Dubai also lends tremendous support to the industry with a mission ‘to establish the most prominent real estate sector at regional and international levels’ with the processes and technology to back it up…
Peace of mind and transparency
The Dubai Land Department (DLD) was established in January 1960 to manage all matters relating to the sale and purchase of land in the emirate. The regulatory arm of the DLD is the Real Estate Regulatory Agency (RERA), which sets the policies and plans for Dubai’s property sector.
RERA offers a transparent and straightforward legal framework in an online society that puts together reputable developers, supported by complementary sectors such as insurers, law firms and banks, so investors, whether local or from overseas, can have peace of mind and confidence in their property purchases.
Know your timelines and costs
With all this in mind, you can start to see just how easy and attainable your first Dubai property purchase can be. Understanding all the costs involved, not only in purchasing your property, but then managing / maintaining it later on are vitally important of course.
In terms of costs, consider agent’s commission, Land Department and registration fees, along with bank charges if you are taking a mortgage, then as an owner you will pay service charges and maintenance on the property too.
Is the unit you are buying off-plan property or ready to move in? Off-plan may give you more time to pay as payments are related to completion stages, but will delay you moving in or any rental income. Ready to move in means it’s waiting to be your home or to start being let out.
This neatly brings us to the final point – is your property is going to be an investment to rent out or are you going to live in it? This is crucial as it will greatly influence the type and location of your purchase.
Buying to live
Find out about the various communities you are considering – identify your needs and match them with the community that meets them the most.
Do you prefer a villa or an apartment? Do you want to be close to work? Is there a nearby school if you have children? Are the community amenities adequate…? And so on.
Lastly, what does you budget allow? And will this home last you for years ahead or will you need to move in a year or two? If so, what’s the resale market around the neighbourhood like?
Buying to rent out
Dubai boasts some of the highest rental yields in the world, and the right choice of property will be in demand on a consistent basis. Once again, you’ll need to do your research in terms of the most popular neighbourhoods, and which type of unit yields the best rental returns.
Think ahead too – can you afford to take a break in your income if your tenant moves out? Do you have a mortgage to cover? If you need to sell, how much could you sell your unit for to worst case, can you cover your costs, and hopefully net a good profit even if you have to sell quickly?
So how do I buy from a developer?
If you buy direct from a reputable developer, such as DAMAC Properties, you need to pay a token or reservation fee to book the property, usually around 10%. You’ll also need your passport – and that’s it.
Bookings can be made online at damacproperties.com and a customer representative will take you through the rest of the process.
The developer will issue a No-Objection Certificate (NOC), for a fee, and then the Sales & Purchase Agreement can be drawn up and signed. Transfer of ownership can be made at Dubai Land Department and a Title Deed issued.
Usually the whole process takes around just 30 days to complete.
So, in conclusion, yes it’s a big decision, but your property in Dubai is a lot more easily attainable than perhaps you first thought. To find out more, browse the projects on our site and register your interest.