Buying a property in Dubai can be one of the best investment decisions you could ever make yet it can be daunting and challenging. Complex regulatory framework and rules being changed regularly by the government. Understanding the fees and costs involved. Choosing the right agent or broker to work with. There is always a lot of things to consider. As a real estate broker in Dubai, we have been asked over and over again by buyers and investors alike on how to buy property in Dubai. To answer your questions, here is a detailed guide on how to buy properties in Dubai.
Select the right broker
The importance of choosing the right real estate agent that will guide you through the whole process cannot be overemphasized. Not only will they guide you on the whole process, but they also help get the best property that fulfills your purpose.
Ensure the agent you want to work with is registered and understands perfectly the legal framework guiding property buying in Dubai. Ask for the RERA registered broker number and a portfolio for previous work completed by them. If you know any previous clients or references, consult them and let them share their views and experience with the broker.
Choose between off-plan and secondary market
The next crucial step to take is to understand your goals, budget and the outcome you want to get before making any decision. Do you require properties that are under construction, a new build or an already existing property? If you are looking to purchase a property in Dubai, there are two main options to go for; off-plan and secondary market. The good thing is you can buy apartments in Dubai on installments or mortgage with any of these options.
If your aim is capital growth in which you buy a property and sell it to generate good returns in the future, there are attractive off-plan payment plans developer offers to attract investors.
If you desire a secondary market as well, it is less risky and it allows buyers to resell the existing property at their convenience. Buyers can purchase or mortgage a property from a registered developer. Foreign investors most times consider freehold property in Dubai the most because of the lower risk it carries. However, the lower the risk, the higher the price tag.
Select the right location
Whether it is for an investment purpose, or you plan to move to the property in the long run, it is important to choose the right location. Consider the location and how good it is for the children or tenants. What is the level of traffic and how close is it to schools, markets, and other places? Say in 10 years, analyze how developed the area will be in terms of other properties coming up, hospitals, malls, schools, and other things. If you invest in a good location this will give you a high return or income in the future.
Choose the right property
Looking at the location is not enough, you also have to check on the property to ensure you are making the right decision. Know the age of the property and any useful information about its history. Moreover, you have to understand if the developer is reputable and had a good track record, you simply don’t want to fall in the wrong hands. Plus, how well maintained is the property and whose service is involved in cleaning, security, and management? Your agent should be able to help you out in fishing out information about the property you plan investing in.
Consider the fees for buying a property in Dubai
Understanding the fees and costs involved is the key to proper preparation for what lies ahead. The following are the fees to be prepared for while buying a property in Dubai:
- NOC issuance fee: this is between AED 500 and AED 5,000 paid usually by the seller to the developer.
- Real estate agent commission: 2% of the property value.
- Dubai Land Department(DLD) transfer fees: 4% of the purchase price including AED 540 administrative fee
- Mortgage registration fees: 0.25% of the loan amount including AED 290 registration fees.
- Property registration fees: AED 2,000 + VAT if the property selling price is below AED 500,000. AED 4,000 + VAT if the property selling price is higher than AED 500,000.
- Valuation fees: between AED 2500 to AED 3500
Can foreigners get a resident permit if they buy property in Dubai?
The answer is yes! However, the only residential property allows foreigners to get a resident visa. The property must be located in freehold areas and the value must not be less than AED 1 million. Whether you are buying a property in Dubai from the UK, or any other country, know the latest rules and regulations and work with a trusted agent while at it.
Regardless of whether you are a foreign investor or local resident, these are the things to know before buying a property in Dubai. In case of any queries or you want to buy a property in Dubai, kindly contact any of the experts in REMDubai for free consultation and guidance.