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 crucial.
Buying a property involves many things to think about. You need to consider the type of property, its location, taxes, and more. 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 a 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. Deciding whether to get the property with the help of a mortgage or cash will help you.
- 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. 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 ready and you choose a property, collect all the needed documents. Your agent will then make an offer for you.
- When the seller and you are on the same page, sign the MOU and get ready to hire a conveyancer.
- When you finish everything, transfer the property 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.
Deciding what will exactly suit your needs is not easy. 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
Generally, two types of properties exist: 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: Freehold ownership gives you full control.
- Leasehold: Leasehold ownership allows you to own for a limited time. You can choose to invest in freehold or leasehold properties.
This choice depends on how long you want to hold the property.
How to select the right agent?
To purchase a property hassle-free, hiring a Real Estate agent is essential. Working with experienced agents is crucial while investing in any kind of property.
You need to find agents with experience in the type of property and location you want to invest in. They will show you what kind of relevant options you have and will also guide you through the market trends. Hiring them will relieve you 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. The prices range between AED 2 to AED 30 per sq ft, based on a per sq ft basis.
- Mortgage registration fee – If you buy a property in dubai with a loan, you must pay 0.25% of the loan amount to the Dubai Land Department.
- Conveyancing fees depend on the type of property and whether your agency provides this service.
Conclusion
Buying the property in Dubai is extremely 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 crucial.
Also, you need to be aware of additional fees. Working with an experienced real estate agent is crucial. They can help you based on your needs and preferences.
FAQs
How long does it take to buy a property in Dubai?
The time it takes to buy a property in dubai can vary. It depends on factors like financing and paperwork. Usually, the process takes about 6 to 8 weeks, but it can be quicker.
What is a Memorandum of Understanding (MOU)?
People also know the MOU as Form F in Dubai. A legal agreement exists between the buyer and seller. It shows all the key terms of the property sale.
Can non-resident expats secure a mortgage in Dubai, and what down payment is required?
Yes. UAE residents can borrow up to 75% of the property value; non-resident expats up to 50%. Minimum down payment is 25% for off-plan and 20% for ready properties. Lenders will review your income proof, bank statements, and credit history.
What to do if the property you want to buy is rented?
If someone rents the property, you will receive the tenancy as the new landlord. To live there, you must give them at least 12 months’ notice. This is true if the previous owner has not done it yet.
Who is eligible to buy a property in Dubai?
UAE nationals, GCC citizens, and foreign investors can all purchase freehold properties in designated zones. Over 150 developments offer 100% freehold ownership for non-GCC buyers.
What documents do I need to complete a property purchase?
Submit copies of your valid passport, UAE entry stamp or residency visa, Emirates ID, a recent bank statement (proof of funds), and a utility bill for address verification. Corporate buyers must also provide a certificate of incorporation, board resolution, and Power of Attorney.
What government and service fees apply when buying property in dubai?
Dubai Land Department charges 4% of the purchase price plus AED 580 admin fee. Agency fees run 2% of sale price. You’ll also pay a developer NOC fee (AED 500–5,000) and, if applicable, a mortgage registration fee of 0.25% of the loan value plus AED 290.
