The Dubai property market is one of the most attractive playgrounds for global real estate property investors. demand for property in Dubai has always been high owing to its strategic location offering gateways to the Middle East, Africa, and Asia. It is also easily connected to London and other European markets. being a leading global business and tourism destination, the Emirate also promises high quality of life. Add to that investor and visitor-friendly visa laws along with other reforms, and you get the perfect condition for real estate purchases however, investing in Dubai property demands careful due diligence on your part. So, if you are planning to buy a property in the city of gold, here are 12 tips on how to do so.
Purpose of Buying a Dubai Property
When planning to buy a property in Dubai, identify the purpose of your purchase, i.e., whether you are buying it for yourself or want to make it available for rentals. Filter out property preferences based on this parameter and then go into matters like your chosen locations, property type, nearby amenities, and so on.
Dubai Property Locations
When considering a real estate property purchase in Dubai, you would also like to check out which locations in the city will be suitable for you. You can opt for new locations in Dubai, like Dubai South which has cheaper properties right now with an expected increase in value in the future.
If you are looking for some affordable Dubai properties with good connectivity, you can go for Dubai International City, Jumeirah Village Circle, Jumeirah Village Triangle, and the like.
If you have enough budget, you can also choose properties in the developed areas of Dubai. You can both own these properties and rent them out. Locations like Jumeirah Beach Residence (JBR), Dubai Marina, and Palm Jumeirah can be good options.
Condition of Property in Dubai
When looking for real estate purchases in Dubai, it is safer to choose a new property. In Dubai, it is usually the responsibility of the developers to fix any glitches in any residential unit. However, if the property is over a decade old, it becomes the owners’ responsibility to take care of it. Additionally, newly constructed residences in Dubai are built according to the latest safety rules and standards that ultimately offer better durability and value for money.
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Budget
A real estate property is a lifetime investment. It does not involve payment in one go but monthly EMIs throughout a span of years. so, when sitting to determine your real estate purchase budget, do some online market research, examine your monthly financial condition and savings. Have an idea of what the EMI will be for a certain property and how much you can exceed your budget to buy it. ensure that you have ample funds for making regular installment payments, particularly for an under-construction apartment. Inability to pay in the middle of the payment plan and contract will only result in losing both your property and money altogether. Additionally, ask your realtor for a complete price evaluation sheet for more detailed comprehension.
Along with the property purchase price, you also have other associated costs. These include registration or transfer fee payable to DLD (Dubai Land Department), valuation fee (if taking a mortgage from the bank), loan processing fee, mortgage registration fee, trustee fee, brokerage fee, maintenance fee, DEWA (Dubai Electricity and Water Authority) registration fee, district cooling fee (for cool water and air conditioning), property management fee (if not living in Dubai), home insurance (optional).
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Real Estate Property Purchase Timing
Will you be buying the property during a slowdown in the market or when the market is already booming? Experts feel that you should time your purchase to the period when more people are selling. Suppose the market is slower in the current scenario with real estate developers offering low prices, attractive services and payment plans. This will then be the best time to invest, especially when people are selling at competitive rates.
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Choose the Right Developers
Research or talk to your realtors to narrow down on the best developers in the city. Dubai real estate involves a master developer, a project developer, and a maintenance company. while the master developer is responsible for the construction and maintenance of an entire community, the project developer oversees the construction and maintenance of only one building. after a property completion, the project developer assigns a maintenance company that looks after the building and community. To ensure a quality real estate purchase in Dubai, choose reputed master and project developers. this will not only fetch you the best Dubai communities and properties but will also prove to be profitable if you want to list it for sale or rent later.
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Look for Registered Brokers
Always deal with registered real estate brokers and property developers. Before buying Dubai property, make sure that the broker has registration with the municipality or land department of the Emirate. The Dubai-Rest app, created by the Dubai Land Department (DLD), makes it easier to invest in property in Dubai. this app will give you a list of all the registered projects, real estate developers, and brokers. Even while buying real estate in Sharjah, Ras Al Khaimah, Abu Dhabi, and Ajman ask for the registration card of the broker. This unique ID can also be verified after making inquiries at the authority.
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Ask for Project Accreditation Certificate
It is only after the completion of the registration process and obtaining the accreditation certificate that any real estate developer can launch or announce a new project. so, whether you are buying a ready-to-move property or an under-construction property, always ask for a DLD accreditation certificate to check if they are registered. when buying an under-construction property, ask the project personnel to display the project certificate issued by the Dubai Land Department (DLD). it should also have an Escrow account linked to the same. The app of DLD will show you all registered real estate projects in the city.
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Go Through Contracts Thoroughly
Always seek the contract draft and read it carefully before finalizing your real estate purchase. If you pay your money and then find something unsuitable, you will be unable to do anything in this regard. check all details, including whether the floor plan matches the model along with the number of bedrooms and their sizes. Double-check the date of handover along with the payment plan before finalizing any deal. irrespective of the amount or mode of payment, always obtain your receipt from the developer or the property broker.
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Stay Away from Fraudulent Traps
If a broker promises that a property value will increase by 100% in a few months. It is a trap, and you should ignore the deal. When investing in real estate, patience is key as money cannot be made in real-time. The above example is just illustrative. Do not be lured by such get-rich-quickly schemes.
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Track Project Progress
If you are buying an under-construction unit, reach out to the developer every quarter. Ask for photographs and videos of the construction to track overall progress. registered developers always update their construction progress on the Dubai Land Department’s Dubai-Rest app. So, you can simply log in to the app and check the status from there as well. even if you have invested in real estate property in any other Emirate, stay in touch with your developer to make sure that the construction is going ahead as per the initial blueprint.
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Heed the Right Advice
Has any family member or acquaintance recently invested in real estate in Dubai? Speak to them, get to know their property buying experience in the country, and ask for their advice. it is best to speak to those you have a personal relationship with to ensure a wise real estate investment. You can even ask them about the best residential areas, properties, and developers in Dubai.
Final Thoughts
Dubai is a land of thriving real estate properties. However, purchasing the right property can still be a hassle if you dive in uninformed. follow these tips to carefully do your homework and double-check everything before you finalize the deal. do some online search not only on properties but locations, realtors, developers, and cost. Ask for a thorough pricing evaluation sheet and DLD accreditation certificate for your chosen property. no matter the type of property you intend to buy. Ensure that you have the right budget for it and have the knowledge to make an informed decision in the end.
