Investing in Dubai property: a step-by-step guide
Dubai’s booming property market offers premium living at competitive prices, making it a desirable choice for young professionals and families. The city’s carefully planned amenities and modern facilities contribute to its growing popularity.
Where to start looking
Given the significant investment involved, choosing a villa or apartment in Dubai requires thorough research. While browsing developer websites can be helpful, firsthand inspection of properties is essential for making an informed decision.
Consider your ideal property: Do you envision a vibrant city center lifestyle, like the luxurious Emaar Grande complex in downtown Dubai, or a peaceful suburban retreat, such as the family-friendly Ranches development? Is a beachfront oasis with breathtaking sea views essential? If so, Emaar Beachfront might be perfect. Or do you prefer a serene neighbourhood surrounded by greenery, like the welcoming community of Dubai Hills Estate?
Dubai’s real estate market has seen a surge since foreigners were allowed to own property. This has led to a boom in construction, resulting in some incredible properties available for purchase.
Before committing to a property, take the time to visit potential homes, research the area, and understand the terms of the offer.
A guide to the legal framework for property ownership in Dubai.
When purchasing property in Dubai, having a trustworthy realtor by your side is crucial. They can provide expert guidance throughout the process, whether you’re interested in off-plan developments or established homes.
Dubai offers property ownership opportunities to individuals of all nationalities. As long as the property is located in authorized areas, non-residents can invest in real estate for both residential and rental purposes.
Freehold vs. Leasehold: Which is better for buying property in Dubai?
As in many other cities, property ownership in this area comes in two types of property available – leasehold (It’s possible to purchase a leasehold estate in a property for a duration between 30 and 99 years.) and freehold (where you fully own the property).
Leasehold properties, while potentially cheaper than freehold options, especially in areas like Downtown Dubai, have additional expenses such as ground rent, service charges, and maintenance fees.
Approximately how much time will it require?
The process of buying property here is comparable to that of the UK. Once the Agreement of Sale is executed, expect the transaction to be completed within approximately 30 days.
Once you’ve identified a desirable property or villa in Dubai, the initial step involves signing a Memorandum of Understanding and paying a deposit of approximately 10%. To proceed further, the buyer and seller must meet and obtain a No Objection Certificate (NOC) from the developer. This certificate, issued upon payment of a fee, confirms the developer’s approval of the sale, contingent on the buyer’s financial capability. Therefore, it’s essential to have your financing secured before commencing the purchase process to avoid delays or potential deal cancellations due to the absence of an NOC.
Once you have the NOC in hand, visit the Dubai Land Department to complete the property ownership transfer. You’ll need a manager’s check for the purchase price, payable to the seller on the transfer day.
Once everything is finalized, you’ll be granted a land deed for the property.
Investing in Dubai property through a mortgage
If you’re using a mortgage to buy property in Dubai, the NOC will only be issued once your lender confirms that they have sufficient funds to complete the purchase. This may result in a slightly longer process than a cash purchase.
Exploring the financial aspects of acquiring real estate in Dubai.
Beyond the cost of the property, there are various additional expenses to consider.
- NOC fees – The cost of obtaining a No Objection Certificate (NOC) can range from AED 500 to AED 5,000, depending on the property’s value. Typically, the seller is responsible for paying this fee to the developer. In some cases, the developer may also require an additional refundable deposit. This deposit is returned upon submission of the new title deeds and the necessary record updates.
- Estate Agent’s commission – The cost is generally about 2% of the purchase price.
- Transfer fees – The transfer fee for property in Dubai is approximately 4% of the purchase price, plus a fixed fee of not more than AED5,000 payable to the Dubai Land Department.
- Mortgage Registration Fees – Mortgage registration fees could apply if you’re using a mortgage to buy a property. These fees are typically 0.25% of the loan amount and are paid to the Dubai Land Department.
The developer requires a yearly service charge, which must be paid in advance.
Where can I find prime real estate locations for purchase in Dubai?
Downtown Dubai offers a variety of upscale apartments, many just steps away from the city’s heart. Emaar Forte’s apartments are particularly popular and often command higher prices, while the Harbour Views Tower in Dubai Creek Harbour provides a luxurious and modern urban lifestyle.
Escape the hustle and bustle and find your perfect family haven at Emaar Ranches. Enjoy large homes in safe, amenity-rich communities, surrounded by wide-open spaces for a serene lifestyle.
If you’re looking for spacious apartments in the heart of Dubai, BLVD Heights is a great option. However, if you prefer a more tranquil environment, Park Point in Dubai Hills Estates offers a unique alternative to high-rise living.
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