Even though purchasing a property in Dubai was exceptionally hard for foreigners two decades ago, a lot has changed since. Thanks to the legislation changes, buying a property in Dubai has become easier than ever before. As an expat, you can now buy, rent, sell, or lease with no special permissions. This, along with other changes, made Dubai a global hotspot for international investments, and, in the long-term, one of the fastest-growing markets in the area. Whether you are a foreigner already living in Dubai or plan to become one, this allows you to own some of the most attractive properties.
Useful tips for buying a property in Dubai
For a long time already, Dubai has been one of the favorite destinations for living and working. With outstanding scenery, high quality of life, luxury amenities, and extraordinary income possibilities, Dubai has become a perfect place for many. With this in mind, it’s no wonder why almost 80% of residents are expats. And while for a large percentage renting was the only option, today, you can easily purchase a property or land in certain areas. So if you plan to stay here, or invest in Dubai properties in the future, here are a couple of tips that can help you.
Make plans before buying
Before you decide to own a property in Dubai, it is necessary to research your options and make a good plan. First, you need to know in which areas you can buy. In general, there are about 23 freehold areas to consider. Some of the most popular places are Emirates Hills, Jabel Ali, Al Barsha South, Dubai Marina, Jumeriah Village Circle, and there are many more.
Second, you need to plan your budget. Some areas are more expensive than others, so it’s necessary to adjust your budget accordingly. Also, there are other points to consider. For example, if you want to transfer everything from Kuwait to Dubai, finding an affordable apartment is not the only cost. You will need to include the relocation expenses in your calculations.
Type of property you can buy in Dubai
There are three types of property you can buy as an expat in Dubai:
Commonhold is a property type where you can purchase an apartment, but you still have to pay for maintenance to the developer. In this case, you own only the residence while the building and common areas are in the developer’s ownership. As an owner, you can further sell or rent your apartment.
In the case of usufruct, you buy property for a certain number of years. Again, you can act as a full owner of the property, but it goes back to its previous owner once the “owning period” is over. However, during that time, you can’t make any significant structural changes to the property.
Freehold is one of the most common and most popular types of properties in Dubai. Once you complete the purchase, it’s entirely yours. In general, this is the most appropriate type of ownership if you decide to buy a house. And the best way to do it is to contact some of the reliable developers directly.
How to find the right property in Dubai
Like anywhere else, finding the right piece of property requires some research first. Meanwhile, here are a couple of steps you can follow to see what is right for you:
- Check online listings
- Go through local real estate agents
- Contact developers
- Visit each property in person
- Spend some time in the area to get the general feel
- Pay close attention to parking and traffic – it’s also one of the crucial factors in Dubai.
Remember, with proper documentation, you are free to buy a property. However, there are some areas in Dubai where old laws still apply, so check for restrictions that may apply.
If you buy for personal use
If you consider a purchase for personal use, there are a couple of factors to consider. Since you are going to live there, you want to explore the entire neighborhood. Everything from schools to medical facilities to various amenities can affect your life on a daily basis, especially if you are planning to raise a family in Dubai. Additionally, if you are moving in from another place, you will need reliable assistance. Those looking to move from Kuwait, for example, usually find the right help on the websites like easymovekw.com and others.
If you buy as an investment
Dubai is also an attractive market for investors. Many decide to invest because of plenty of benefits in taxation, high ROI, and simple procedures, especially in the residential market, since living space is always needed. But, there are also many commercial properties for business setups, like office space and similar.
Check a mortgage in Dubai
When buying a residential property, for example, banks offer very attractive mortgage rates. And expats are also allowed to get them in Dubai with ease. This is particularly important for first-time buyers but also for those who already have a mortgage and consider refinancing.
There are a few factors, however, which will affect the loan:
- The value of the property you are planning to purchase
- The deposit you have to pay
- Your current financial situation
- Current employment status
- Whether it is a personal purchase or investment
Check the fees you need to pay when buying
Before you place your signature on the deal, you need to investigate all the fees included. The down payment is not the only expense you will have. And sometimes, those additional property fees can be considerably high. For example, there is a 4% fee to the Dubai Land Department plus the administration fee. Also, Property registration fee, Real Estate Agency fee, Property valuation fees, and more. Additionally, there is an Oqood fee when purchasing an off-plan property. Most of them are about 5% plus administration taxes, so don’t overlook them when planning your budget.
Inspect complete documentation
Finally, before you place your signature on the contract, closely inspect all the paperwork. Every property purchase goes through a Memorandum of Understanding, or Sale and Purchase Agreement between you and the seller. They contain a complete list of terms, conditions, and agreements between both sides. By all means, do not sign unless you have a full understanding of the entire document. Checking everything before placing your signature is one of the most important tips for buying a property in Dubai you can get.