Dubai – The city of grand towers, luxurious lifestyles and an ever-booming real estate market is on every potential property buyer’s wish list. Buying property in Dubai is an admirable and lucrative investment for many who are willing to move into this shimmering city or see it as an investment for the future.
Before you start your property hunt in Dubai, it is crucial to understand the process of buying property in Dubai. This step-by-step guide will help you to proceed with the buying process in an easy and knowledgeable manner.
There are many reasons why you should buy a property in Dubai. Dubai is a modern yet traditional exciting city to live in. Additionally, the geographical location of Dubai, the tax-free lifestyle and the high rental demand are some of the major factors that drive property buyers to invest in this glowing city. Most importantly, the quality of life in Dubai is luxurious and supreme, with top-notch facilities and a multi-ethnic culture.
Process of Buying Property in Dubai
Get to know the market
First and foremost, you need to get yourself familiar with the real estate market of Dubai before you begin the process of buying property. You can compare and contrast the various locations, types and prices of property that suit your requirements. Also, it is important to know that the properties in Dubai are usually referred to as freehold and leasehold properties. Freehold property refers to the ownership of the property where you hold all the ownership rights to the asset. On the other hand, leasehold properties are long-term leases ranging from 3 to 99 years.
Fix your budget
Figure out how much you can afford. Besides the price of the property, there will be other charges added, such as; property buying agent fees, registration fees, maintenance charges and so on. For instance, Grovy Real Estate Developers provide various types of luxurious properties like their Alcove, Aura and Aria developments with different price ranges and facilities. So, it is vital to keep those extra costs in mind to prevent any unexpected future expenses.
Identify the suitable property for you
To get the best out of what you have in mind, you must be critical in selecting the property. Grovy’s Alcove, Aura and Aria developments are luxurious apartment buildings with world-class facilities and superior location connectivity. Each of the three projects has its own unique appeal to cater to different tastes and lifestyle preferences.
Look for a real estate agent to assist you
A professional real estate agent will make your property buying journey a lot easier and time efficient. They have the appropriate knowledge and resources to help you find your dream property, negotiate the property price on your behalf and deal with the paperwork. Typically, their fees range between 2% to 5% of the property purchase price. So, it is better to include this charge while you are working on your budget.
Arrange for funding
If you are planning to get a mortgage loan to finance your property, you should shop around for different banks and their offers. Generally, most of the banks in Dubai require at least 20% of the property purchase price as the minimum down payment for an expatriate to obtain a mortgage loan. Also, there will be other charges, such as processing fees, property valuation fees, stamp duty and insurance premiums that you need to consider when taking up a mortgage loan.
It is best to get your mortgage loan pre-approved before you head out to look for a property of your own. This way, it will facilitate a smoother and more time-efficient transaction process.
Submit your offer
After you’ve found your dream property, the next step is to submit an offer. The real estate agent will negotiate the property terms and price on your behalf. You should always consider if the offer price is reasonable and within your financial limit.
If the seller accepts your offer, then you will be required to sign an agreement called a Memorandum of Understanding or MOU. The MOU usually contains the terms and conditions of the offer accepted by the property seller.
Deposit payment
After you have signed the MOU, you are required to make a deposit payment, typically 10% of the property purchase price. The deposit must be made as soon as possible once you sign the MOU to prove that you are serious about the purchase of the property.
Property inspection
Before you decide to buy the property, it is vital to conduct a complete property inspection to ensure that all the facilities and appliances are in good condition.
The property inspection will help you detect any potential issues that may arise in the near future which you might want to get fixed before proceeding with the ownership transfer.
Ownership transfer
Once you have completed the property inspection, the next step is to transfer the ownership of the property. There will be a property registration fee which is normally 4% of the property purchase price that you must pay to the Dubai Land Department. You must also ensure that you have all the necessary documents, such as your passport, visa and Emirates ID, if available.
Sale completion
After the ownership transfer process is completed, you will then be required to make the full and final payment. This step completes the sale process, and you officially become the owner of the property.
Other fees you might have to consider
Service and Maintenance charges
Most luxury Dubai properties come with world-class amenities, and these top-notch amenities demand constant maintenance. Properties like Grovy’s Alcove, Aura and Aria come with exceptional amenities, and it costs to uphold that exceptional standard. Service fees take care of all common area maintenance, security personnel and other facilities. This fee is usually calculated based on a per sqft basis.
Utility setup fees
The setup of utilities such as electricity, water, gas and internet will also incur costs. Electricity and water supply fees vary based on the supplier and the size of the property. You can check with the local suppliers for approximate charges.
Legal fees
To be on the safe side, you might want to hire a legal expert to guide you through the property purchase process and alert you of any potential issues that may arise. The legal fees usually vary, and it is always best to ensure that your documentation is in order.
About Grovy
Grovy Real Estate Developers LLC strives to create liveable art in Dubai. Each property offers opulent living options and is equipped with contemporary facilities. Vibrant and lively, Alcove, Aura and Aria are designed to offer residents the utmost comfort and convenience.
Summary
Purchasing a property in Dubai is a huge investment and, as such, needs thorough planning and research. The market is ever-changing. You need to set your budget right, and plan and calculate all the additional expenses that may arise. This guide will help you understand the Dubai property market and get you the ideal place you can call home.
Are you looking to invest in luxury real estate in Dubai? Grovy Real Estate Developers have the ideal properties for you. Visit our site today to learn more and take the first step to owning your dream home in this city.
