Buying a property in Dubai can be quite exciting, but also complex; it has now turned into a hub of investors and homebuyers with its alluring skyline, flaunting the likes of the Burj Khalifa and Palm Jumeirah. But before you take the leap into the city's real estate market, you must know a few key things first. This guide will take you to the world of Dubai Properties.
Step one would be to understand the ongoing market trend. Something about properties in Dubai is that the real estate market is considered to be dynamic because of reasons such as oil price adjustments, global economic indicators, and domestic regulations. Hence, it would always be imperative to keep track of market reports, property valuation trends, and recent sales indicating the time whether it is a buyer's market or a seller's market. Dealing with a local real estate agent who has first-hand information on the market might also provide personalized advice.
The specific laws on property ownership in Dubai are very stringent, particularly for expats. Non-residents can only buy property within specially set aside “freehold areas,” but there is a need to understand the legal system regulating these transactions. If you’re an expatriate, make sure that the property lies within a freehold area. Know the laws regulating property ownership like the requirement of 10 percent as a deposit and other additional costs involved in buying, such as transfer fees, registration costs as well as legal fees.
Securing finance is a critical part of buying Dubai properties. Since most buyers require a mortgage, it's important for you to know the lending criteria. Dubai's banking system has a variety of mortgage products, all different in their terms and conditions. Pre-approvals of mortgages are advisable, first to understand your budget but also to present to the seller your seriousness in buying the property. Note that the maximum LTV ratio for expats is usually around 75%, which means you will need to make at least a 25% down payment of the property's value.
Dubai is a dynamic city with many unique neighborhoods to choose from. When considering Dubai Properties, the first thing to determine is the location that is right for you relative to your lifestyle and investing goals. Areas, such as Downtown Dubai give purchasers an urban environment with many of the city's major attractions close by. Alternatively, areas such as Jumeriah or Arabian Ranches provide a more suburban family-friendly area. Be sure to assess distances for items of importance, such as schools, work, public transportation, and entertainment are distance-friendly.
The strength of the property developer is another important consideration. There are many Developers to choose from in Dubai, and selecting the right one can play a significant role in your buying experience. Research the developer's track record, past projects, and understand other people's opinions. Developers that have a strong reputation, should have delivered property on time and at a good standard. This makes it less likely that you'd experience delays, or structural issues with the property.
If you are planning to buy Dubai Properties as an investment, management and maintenance of the property should be considered. Many developers provide property management services and these can be helpful for you if you are residing outside of Dubai. These normally include management of tenants and maintenance as well as general management of the property and some inspections. Ensure that you fully understand the property management cost and services included so that you can make an informed decision on managing the property long-term.
Before you buy the property, it is good practice to re-verify all property documentation. This includes confirming that the property has a valid title deed, whether there are any remaining mortgages or encumbrances against the property, and reviewing the sale agreement and extent of the agreed purchase. It is a good idea to have a legal advisor who is familiar with Dubai’s real estate laws, this avoids issues down the track and gives you the confidence to transact.
Dubai property purchases offer many possibilities; however, you must take time before entering the transaction. With proper understanding of various aspects such as market trends and conditions, laws governing property ownership, available options for financing as well as where it is located can assist in making a choice within your means. Whether you are looking for a new home or an investment opportunity, keeping these factors in mind will help you navigate the exciting world of Dubai Properties successfully.
