How to Buy Property in DubaiAs Dubai’s residential real estate market seems to be looking up once again, many property investors who were earlier sitting on the sidelines are now actively contemplating buying a property in the emirate. The high living standard, cosmopolitan culture and sub-tropical climate of Dubai urge many to make this city, their second home to live. Experts trust that any money put into Dubai’s property market can expect healthy returns in the future but there remain certain factors to consider.
Buying property anywhere in the world can be a large financial commitment and Dubai is no different in this respect. Its relative immaturity as a legal system makes it even more imperative that you pay extra care and attention, taking the precautions that you would in any other country or part of the world.
So what should people think about before choosing which property to buy in Dubai? We have listen ten important factors that buyers must consider.
2. Master developer’s and building contractor’s reputation, delivery and maintenance track record
3. Potential return on investment
4. Property layout, size and design
5. Recurring monthly costs, including electricity and service charges
6. Seller’s existing mortgage prepayment requirements
7. Buyer’s mortgage ability and availability
8. Quality and reputation of neighbourhood/community
9. Community advantages and amenities
10. Geopolitical risk
Buying Villas or Apartments in Dubai - In May 2002, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai issued a decree allowing foreigners to buy property on freehold ownership which sparked the real estate boom in Dubai’s residential property. Freehold areas in Dubai include plots in Jebel Ali, the Palm Island projects, The World islands, Dubai Marina, Emirates Hills and Al Barsha, among others. Registration of your property with the Land Department is important to claim full ownership. Once a property is purchased and handed over to the buyer, the developer must register the title to the property in the name of the buyer in the Real Property Register at the Land Department.
Do I have to be a resident in order to invest in property in Dubai? Ownership of property and residency or sponsorship are interrelated but should be looked at separately. As far as residency is concerned, in principle, a person could own a property in the UAE and choose not to reside in the property, so you do not need to be a resident to buy freehold property as it could be a holiday home. Developers can offer visas with property purchases where buyers are entitled to a six-month multiple entry visa.
We advise that buyers always enter into a written sale and purchase agreement. A clear written sale and purchase agreement is fundamental to protecting your rights in the event that the developer is unable to deliver on their obligations. One should differentiate between an off-plan and completed property in this regard. Key in off-plan contracts should be the delivery obligation of the developer (with a clear timeline and long-stop date). Purchases of completed properties are much as they are in other jurisdictions, however legal advice should always be sought.