While Dubai today is synonymous with its extravagant lifestyle and grandeur living standards, which can be reflected by its skyline and infrastructure, it is not just restricted to opulent homes. Meanwhile, homebuyers wanting to experience top-tier luxury can opt for a luxurious Villa with a private beach on Palm Jumeirah. There are also budget homes like Studio Apartments in Jumeirah Village Circle, which provide valuable homes without burning a hole in your pocket. The real estate market in Dubai is huge and provides diverse housing options for different budgets from world class developers like Damac Properties.
Finalising Budget & Financial Options
The first and most vital step is to plan a fixed budget and decide how much money you are willing to spend on a new home. Make sure to include additional expenses like fees, taxes, and maintenance. Keep in mind that to purchase a property in Dubai, it is vital for expatriate to have 20 – 25% deposit for properties under 5 Million AED and 30 – 35% deposit for properties above 5 Million AED. But for UAE nationals, they only require 10 – 15% deposit.
Type of Property
- Freehold & Leasehold Properties – The next step is to decide which type of property to go for. While Freehold refers to complete ownership of land and property which is available only in designated areas for the expats, leasehold properties refer to leasing a property which can go upto 99 years, depending on the availability.
- Commercial & Residential properties – Expats can either choose residential projects from noticable builders like Damac Properties who specializes in Villas, Townhouses and apartments or they can opt for commercial properties like purchasing a Warehouse, Office, Retail space etc.
Shortlisting the Location
One of the factors which make the real estate market stand out and have aided in its growth over the years, has been some of the prime locations in the city. Foreign buyers can often find a hard time choosing the right location for themselves. But they can be catogerized into different segments which can help them choose the right location as per their requirements.
- Family Friendly – These locations include Dubai Hills Estate and Arabian Ranches
- Luxury Living – Palm Jumeirah, Beachfront
- Affordable – These locations include International City, Al Fujan.
Hiring a Real Estate Agent
While this is not mandatory procedure but having a genuine and qualified real estate agent with in-depth knowledge of Dubai’s real estate market trends can be greatly beneficial. A real estate agent can help in the following areas.
- Provide Market insights which reduces time and money.
- Provide an array of options based on individuals’ preferences and budgets.
- Takes care of the paperwork and negotiations for seamless transition of purchasing a property.
Exploring the Properties Online
While its always advisable to have a real estate agent by your side, some other alternatives can include scrolling through the properties on online listings. These not only provide a rough estimate of the price but also provide a glimpse into the shortlisted properties. But its best to keep your real estate agent on the loop who can provide a clearer insight on these projects.
Negotiate & Finalize the Price
Now that you have shortlisted the property, it’s time to get on the negotiating table. For foreign buyers in particular, it’s best to leave it to the real estate agent who can get you the best negotiations on the property. However do make sure personally as well that all the terms have been agreed, which includes payment schedule and other additional expenses.
Sign the Memorandum of Understanding (MOU)
A vital document that must be read thoroughly by the buyer. This document is drafted as Form F by the Dubai Land Department (DLD) which mentions:
- Price Agreed Upon
- Payment Terms
- Timeline for the Transaction
Procuring No Objection Certificate
Once all the above procedures have been done, the seller applies for a NOC from the property developer. This document confirms that there are no remaining debts, service charges or encumbrances on the property. Fees of this important document ranges anywhere between AED 500 – 5000 depending on the developer.
Transfer Ownership at Dubai Lands Department (DLD)
Once the NOC has been signed, both parties which include the seller and buyer have to visit the Dubai Lands Property Office. However the buyer must carry the following documents.
- Original Passport
- Signed Mou
- NOC From Developer
Final ownership transfer Procedure
Upon the completion of the payment and paperwork, the buyer receives the title deed and hence becomes the official owner of the property. The final step is to register the property with the developer for future payments and maintenance services.
Conclusion
While the process of acquiring a property in Dubai may seem lengthy, the Dubai real estate market provides a convenient and easy procedure for the same for a hassle free transaction. While owning a property in Dubai brings many benefits, it’s vital to first have in-depth knowledge about the real estate market trend in the city to make the most out of your purchase.