How to Buy a Property in Dubai? (Buyer’s Guide)

Want to buy a new property in Dubai but have no idea where to start. Don’t worry, here is a complete guide for you. Whether you are looking for a house or a property to invest in, knowing how to buy it is very important. Buying a property involves a lot of things to consider, like the type of property, location, taxes, and many other things. Go through the article, and be ready to know the complete process of buying the property.

How to Buy a Property in Dubai?

Although the process to buy the property in Dubai is simple, there are some steps that you should take care of while buying it. Below is a step-by-step guide for your better understanding:

• The first thing that you need to do is to set your budget. It will help you to decide whether you want to get the property with the help of a mortgage or Cash. 
• If you think you want to use a Mortgage as a financing option, try to apply for pre-approval. You can also take the help of a mortgage broker in Dubai. 
• Decide what is the ideal timeline. It is because the purchasing time usually varies. 
• Hire a good real estate agent who can help you decide which type of property you should invest in. 
• Select the location you want to get the property in and start looking for different properties. Give yourself a good time deciding where to invest. 
• Once everything is done and the property is selected, gather all the required documents, and your agent will make an offer on your behalf. 
• When the seller and you are on the same page, sign the MOU and get ready to hire a conveyancer. 
• When everything is done, get the property transferred into your name. 

How to Select the Property?

Dubai’s real estate market is full of different properties. Whether you are looking for villas, apartments, townhouses, or penthouses, all are great options. At the end, it depends on your needs and budget. It is not easy to decide what will exactly suit your needs. Your consultant can help you decide which property you invest in. However, you must know which type of property and ownership will best suit you.

The Difference Between Off-Plan and Ready Properties

There are generally two types of properties: Off-plan and Ready to move in. Off-plan properties are those that are still under construction process. While ready properties are the ones that are ready to move in. As off-plan properties are still under construction, there is more flexibility in making changes to the final apartment. Also, they are cheaper as compared to ready properties. 

To know more about it, you can check out this guide. 

Difference Between Freehold and Leasehold Ownership

In real estate, you have two types of property ownership: freehold and leasehold. Freehold ownership is the one that grants you complete control, whereas leasehold ownership is the one that gives you ownership for a limited period of time. Depending on the time duration for which you want to hold the property, you can choose between investing in freehold or leasehold properties. 

How to select the right agent?

If you want to purchase a property hassle-free, hiring a Real Estate agent is what you need. Working with experienced agents is very important while investing in any kind of property. Depending on the type of property you want to invest in and the location, you must look for agents who are experienced in it. They will show you what kind of relevant options you have and will also guide you through the market trends. By hiring them, you will get relieved from the tension of the purchasing process. 

What Documentation Will You Need to Buy a Property in Dubai?

Depending upon which type of property you are investing in, you may need to have different documentation. Below are some of the necessary documents for any kind of property you invest in:

• Signed Memorandum of Understanding (MOU) (After you and the seller have agreed on an agreement)
• Your passport 
• Emirates ID 
• Visa (only for UAE residents)
• You’ll also need to provide a security deposit at the time of agreeing to your purchase. Whether you are buying it with cash or a mortgage, you will need to give it. Usually, it is 10% of the agreed sale price. You CAN do that through the following things:
  Personal cheques – For Dubai banks only
• Third-party cheque – For anyone who does not have a personal checkbook 
• Bank transfer to the real estate agency 

Costs to Consider While Buying the Property

Below are some of the costs that you must consider while purchasing the property:

• Transfer fee –Whether you are purchasing off-plan or ready property, you must pay a 4% transfer fee to the Dubai Land Department. However, there few developers who cover some or the full part of it as an incentive to purchase.
• Agent fee – It is usually 2% + VAT. However, for most of the off-plan properties, developers pay 2% to the agents. 
• Community service fee – It is the fee that covers the costs of maintaining and managing common areas. They are based on a per sq ft basis and usually range between AED 2 to AED 30 per sq ft.
• Mortgage registration fee – If you are purchasing the property with the help of a loan, you will need to pay 0.25% of the registered loan amount to the Dubai Land Department.
• Conveyancing fee – This type of fee is based on the type of property and whether your agency covers this service or not.

Conclusion

Buying the property in Dubai is very profitable. Although the process is easy but you need to make important decisions for it. From setting up the budget to selecting the right type of property, it is very important. Also, you need to be aware of additional fees. However, working with an experienced real estate agent is extremely important, as they can guide you on what to do based on your needs and preferences.

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