Guide to buying a property in Dubai

Buying a property is one of the most exciting things you can do. With Dubai being one of the world's most exciting cities to live in, buying property here can make for an even more thrilling experience. But if you are not from Dubai or the UAE, the process of identifying and buying a good property can be cumbersome. As one of the Top Developers in Dubai with over five decades' experience in UAE, we at Shapoorji Pallonji have put together this quick guide to help those looking to buy property in Dubai understand the basics and steps involved in making such an investment.

If you're interested in purchasing real estate in Dubai but don't know how to, there is no need for concern because this guide will walk you through every step of the process.

Types of Real-Estate in Dubai

There are several types of commercial and residential property for sale in Dubai.

• Residential properties
• Commercial properties
• Land
• Off-plan development projects
• Serviced apartments and villas

In addition to these, there are several other kinds of buyable property you can look at. These include apartments, townhouses and studio flats.

Due Diligence is Essential, especially for Foreign Buyers, before making a purchase.

Before purchasing your property, it is important to perform due diligence on the property. Due diligence refers to a process of investigation and examination to ensure that a buyer is not buying a property that may be subject to environmental or legal issues. It is a legal requirement in Dubai, Abu Dhabi and some other emirates of UAE. You can employ Third-Party companies or real estate agents specializing in due diligence services.

Suppose you do not engage in this process. In that case, it could result in your sale being canceled by authorities after completion, which will cost you and your developer dearly if it happens after construction has begun.

What we suggest you to do is to download the official app to check project status called Dubai Rest from the app or play store and then click on check project status from the Home Screen or Services Menu to check the status of the project.

The location of your property has a big impact on its price.

• Location is important:

You need to consider the location of your property carefully because it will affect the price, quality of life and resale value.

• The location of your property has a big impact on its price:

This is especially true in Dubai, where residential properties have limited options. For example, if you want to buy an apartment in Downtown Dubai, expect to pay more than if you were buying a villa in Jumeirah Lake Towers (JLT) or Marina.

• Location affects rental income and capital appreciation:

The long-term appreciation of the value of your property also depends heavily on the location of your investment.

Buying off-plan can be beneficial, but there is also risk involved.

It can be beneficial for you to buy an off-plan property as you can negotiate the price before the project is completed, and you can also make a deal on the finishing touches of your property before it's built. The biggest benefit of buying an off-plan property is that your investment is subjected to an appreciation as soon as the project is ready, without you having to pay the full amount upfront. However, there are risks involved with buying off-plan:

• You have to wait to move into your apartment until possession is allowed.
• But off-plan properties can be subject to delayed handover and completion because of construction delays. Even though property developers in Dubai are known for their tremendous work ethic and deliverables.

You will face some fees when buying a property in Dubai.

The following fees will be levied on you when buying a property in Dubai:

• Transfer fees: Dubai Land Department (DLD) levies a one-time tax/fee paid to the government of 4% of the property's total price. The DLD fee in Dubai is legally divided equally between the buyer and seller. (In most cases, the buyer pays the full amount). If you are mortgaging the property, you will also have to pay the mortgage registration fees along with the DLD.
• Registration Fees: Above AED 500,000= AED 4000 + 5% VAT.
• Mortgage Registration Fees: Up to 0.25% of loan amount + AED 290.

The buying procedure is straightforward.

One less thing to worry about when it comes to buying a property in Dubai is the visa, as you don't need a visa to buy any type of real estate property in Dubai. You are eligible for an Investor visa if the total investment is north of AED 750,000 (US$205K) and if you purchase a ready residential/commercial property only then.

All you have to do is contact a broker or real estate property developers in Dubai who will be able to guide you through the whole process of making the offer, negotiation, NOC, transfer and the final handover. Once you sign your sale agreement with the developer, you are ready to enjoy life owning a piece of paradise.

Conclusion

We wish you all the best in your property search. It can be a very exciting time, but we want to remind you that it's important to take your time and do plenty of research before committing to anything. While property developers in UAE are known for their transparency, there are projects like Imperial Avenue with luxurious Apartments for sale in Dubai, for investing in without hiring a broker. It's also true that plenty of scammers would love nothing more than to get their hands on your money.

So, keep your wits about you and only make decisions once you've done some serious due diligence on every aspect of the purchase. With this advice in mind, we hope that buying a property in Dubai will be one of the most fun and exciting things you've ever done!

Sonali Patel has worked in several reputed real estate companies in Mumbai. Currently, she has expert knowledge and wrote blogs about real estate trends and give tips on buying flats in Mumbai.