How to buy property in Dubai – Full Guide
Dubai opened its residential market to foreigners in 2002 and since then the number of expat or foreign property buyers has been rising. The Emirate is home to various magnificent structures, making it a top choice for real estate investment. Buyers can choose from apartments or luxurious villas. The process is fairly simple and straightforward. You can either buy a property in the leasehold area or the freehold area.
The leasehold areas are usually closer to the city centre while the freehold areas are spread out. While the process may be extremely simple, there are still things an individual should keep an eye out for.
Here are some things you should be careful about while investing in Dubai–
- It is important for investors to have a team of experienced legal consultants before making any decisions.
- Before making a purchase, be clear about the purpose for investment. Are you buying for personal use or commercial investment?
- Once the purpose is clear, choose the location accordingly. If the property is solely for investment purposes then choose a location and property that gives high returns, rental yield, and capital growth per year.
- Another thing to be careful about is the agent or broker. Having a reliable broker will reduce most of your worries regarding the investment.
Now that we’ve cleared things up, let us talk about the steps of buying property in Dubai. There are several Dubai property guides available on the internet to help first time buyers with their purchases. But going through a whole guide can be really time consuming. That’s why our team conducted thorough research to put together the brief process of buying a property in Dubai in our blog.
Inspection of the property
Before purchasing any property, it is important to conduct a complete inspection. The best way to do that is using a Real Estate Regulatory Agency -licensed agent. The RERA Agent will conduct thorough inspection and also check the title deeds of the seller.
Issue of agreement of sale between buyer and seller
Once the chosen property has been cleared by the agent, it is time to develop the agreement of sale between the buyer and seller. During this, a deposit of approximately 10% of the sale value (may change according to the location/property) is paid to the seller.
Ensure that financing is secured
The next step in the process of investment is making sure the property does not have any mortgage or outstanding payment against itself. If such is the case, make sure the mortgage of outstanding payments are cleared before purchasing the property.
In case of a fresh mortgage on the property, discuss and develop a contract with the seller accordingly.
Securing a No objection certificate
A No objection certificate is important for completing the purchase. The developer must sign the NOC to transfer the property to the new owner. Sometimes the developer might charge a certain fee for the NOC which may or may not be refundable.
Register the property with Dubai land department
Once all the documents have been arranged, and all payments and bills have been cleared, the property must be registered with DLD. Both the buyer and seller need to be present to complete the process. If unable to do so, they may send a power of attorney in their place.
Make the final payments
Once all the legal activities are completed, it’s time to complete the transaction and accept the title deed of the property. At this time all the additional fees are paid in the name of the seller. These fees might include – brokerage fee (2%), transfer fee (4%), approx. 4000 AED for registration to the DLD, and Approx. 500 AED for the issuance of the deed.