So, you are considering to buy a property in Dubai knowing how beneficial real estate in Dubai can be. But purchasing a property for foreigners may sound like a complex system, loaded with barriers.
Tips to understand the process of the real estate market in Dubai.
Who Can Buy?
Any individual of any nationality, whether a resident of Dubai or based overseas can buy property here. In 2000, His Highness Ruler of the Emirate of Dubai made purchasing freehold properties in Dubai accessible to foreigners in specific regions. Dubai freehold property locations are found in Jebel Ali, Um Hurair, Emirates Hills, Al Gouz, Al Barsha, Ras Al Khour, Nad Al Shiba, and much more.
Know Your Buying Purpose
As simple as it may seem, it’s necessary to know why you actually want to acquire property in Dubai. Do you want to lease it? Do you intend to live here? Such critical judgments and various others will assist you in deciding the sort of property you must consider to purchase.
If buying for yourself, make sure that your regular visit or workplace places are nearby. Schools, play areas, stores, hospitals are other necessary conveniences that one needs to consider when planning to live with the family. But for the leasing purpose, before purchasing, evaluate the rental yield of the house, and demand for rental homes in the region with the help of the real estate agents in Dubai.
Buying Process and Legal Framework
You are not obliged to hold any kind of residency or related permit to purchase a property in the city. One can buy a resale property from a private seller and even off plan properties in Dubai from a developer.
If one is acquiring off-plan, the person must submit the passport and a reservation form describing the terms and conditions of the property deal. For this, the buyer has to pay a reservation fee ranging between 5 to 15% to get the Sales and Purchase Agreement (SPA). According to this agreement, both parties commit to the deal.
On the other hand, for under-construction Dubai properties, make sure that the deal contract incorporates a completion date and describes any fee to be paid in case of a setback in completion. Relying on the completion level, the client might have to wait for two or three years to acquire the property. The developer will provide the completion date.
If buying a resale property from a private seller, a Memorandum of Understanding or MOU is the first level in the creation of your formal property acquisition agreement. The real estate agents in Dubai will run through this process with the buyer to guarantee that a person happily goes ahead in the whole process.
Sort Out Your Finances
A lot of people are wrong to commence the buying process by browsing through real estate projects in Dubai advertised online. However, you will end up dismayed when your dream home is nowhere near to your genuine budget.
Remember, you don’t just have to pay a deposit fee for the property. But there are agency fees, transfer fees, mortgage arrangement fees, sales progression fees, and much more that add up to the actual property price.