No property tax, 25th rank in the world’s top luxury real estate market, direct access to residential visa through property purchase and so much more!
The real estate market of the Emirate can give you hundreds of reasons to consider buying a property in Dubai. Goes without saying, that the property market trajectory of UAE is set towards exponential growth in the upcoming years. According to Mordor Intelligence, experts predict an impressive 8% CAGR for the UAE property market in 2022-2027.
Here is the beginners guide to invest in Dubai Property
The Question Still Remains – Why Dubai?
Dubai offers you a range of options to choose from. Whether you’re a bachelor or a happily married person with a family, the Emirate has a property for you. Interestingly, off-plan properties in Dubai are the most in demand. Combine this with the innovation in the region and futuristic vision for infrastructure, you will find a goldmine for buying property in Dubai as a beginner. So, if you want to ride this tide and get hold of a property in Dubai, you must do your due diligence.
Don’t know where to start? Let’s find out!
Step 1: Narrow Down on Location
Will it be Dubai Harbour, Business Bay, or Jumeirah Village Circle?
Where you want your property has to be decided before going out on a real estate hunt. Location is an important factor in Dubai and each region adds unique attributes to your property. For instance, Jumeirah Village Circle properties offers quick commute options, brilliant public utilities, lush green ambiance, and affordable houses.
Step 2: Figure Out the Type of Ownership
Everyone is eligible to buy a property in Dubai. But it comes with a little caveat!
Depending on your citizenship, there are three methods of property ownership available in Dubai. These include freehold, leasehold, and commonhold. The rules governing each type of property vary for locals as well as expatriates.
- Freehold properties in Dubai give buyers full ownership rights, no matter where they’re from. It means that you own it completely, including the land it is on. This is good news for expats and foreigners because they can also buy these properties, not just UAE citizens. It’s a great choice for you if you want to generate high returns by buying a property in Dubai.
- A leasehold or usufruct property in Dubai is when someone else, like the government or a company, owns the property, but you can use it for a specific time, commonly ranging from 30 to 99 years, with ownership going back to the original landowner once the lease term concludes, and they are usually located in government-designated areas. Usually, it’s for non-UAE nationals and is often used for business or industry.
- Commonhold property in Dubai usually means owning a freehold apartment. Unlike owning a freehold villa or townhouse where you own both the property and the land it is on, with a commonhold, you only own the apartment itself. But you still have the same rights as freehold property owners, like buying, renting, selling, or passing it on to family, and you might even get a UAE residence visa. The only difference is that you share maintenance costs for the building with other apartment owners because no one owns the land.
Step 3: Assess Your Finances
Probably, one of the most important factors for buying a property in Dubai is finances.
If you’re paying the purchase price using your savings, it’s great! The complexity arises when you go with the Mortgage route – In the UAE, citizens can borrow up to 85% of the property price if it’s below AED 5 million, and they need to pay a 15% down payment. But for properties above AED 5 million, they can only borrow 75%, so a 25% down payment is required. Expats have different rules; they can borrow up to 80% for properties below AED 5 million, meaning a 20% down payment. For properties over AED 5 million, they can only borrow 70%, so a 30% down payment is necessary.
Being thorough in your research about how you should pay for the property is crucial to save yourself from future hassles.
Step 4: Understand the Legalities and Purchase Agreement Specifics
The buyer-seller agreement in Dubai is like a rulebook for property deals. It tells you all about the property, how much it costs when to pay, and what everyone needs to do. So, before signing up to buy a property in Dubai, make sure you read it carefully. It’s like a safety net to make sure everything goes smoothly when you’re buying or selling property in the UAE.
Moreover, from No-Objection Certificates to Mortgage Registration fees, every aspect of the legal process has to be followed. If you’re not aware of them, your purchase application might be rejected by the Dubai Land Department.
Other than legal compliances, you have to take care of some expenses to submit with your application. In addition to the property’s purchase price, you’re also supposed to deposit fees as charged by the authorities. These include NOC fees, estate agent’s commission, transfer fees, mortgage registration fees (if applicable), and annual service charges.
You can either dig out the tricky details of the right buying process by searching on the Dubai Land Department’s website or consult an expert real estate property agent to execute the process seamlessly.
Is Buying a Property in Dubai Easy?
Absolutely!
Dubai is considered a real estate goldmine not only because of the property choices the Emirate has but also the convenient purchase processes. From high rental returns to buyer-friendly legal procedures, it has been a front-runner in making the real estate market a lucrative investment domain through the process of buying a property in Dubai.
The reputed developers, such as Grovy, in Dubai have listened to the buyers’ community and created an ecosystem that brings together innovation, excellence, and comfort. Only by following a few steps, you can own a piece of luxury that offers you residence as well as high resale value for the future.
So, what are you waiting for? If you’re thinking of buying a property in Dubai, grab the one for you with Grovy’s help before the prices rise.
Contact us now!
FAQs
1: Can foreigners buy property in Dubai?
Of course! Dubai welcomes buyers of all nationalities. You can own property, whether you plan to live in it, rent it out, or use it as a vacation home.
2: What’s the average timeline for buying property in Dubai?
Once the Agreement of Sale is signed, it typically takes about 30 days to complete the transaction. This timeframe is similar to property purchases in many other countries
