Purchasing a property anywhere is a huge financial commitment and this is also true for buying a property in Dubai. In the past investors were a bit hesitant about investing in Dubai’s real estate market and this was mainly because of the financial crisis back in 2008 which affected many countries worldwide. But things have changed since then as the city’s property market bounced back and is currently at its peak, this attracted many foreigners to invest in the city’s off plan projects due to the great return on initial investment. If you are planning to invest or even consider moving to this amazing city chances are you are already considering to buy a property in Dubai. The city provides a rich variety when it comes to owning a property, investors get to choose between luxurious high-end apartments and villas to regular studio apartments in the city center.
Legal framework Since the passing of the 2002’s freehold law, any person from any nationality can purchase a freehold property in Dubai, with a condition that the property has to be within designated freehold areas. This law also includes foreigners who do not hold any type of residency visa.
Dubai’s property market Dubai’s real estate market is undoubtedly one of the biggest in the world now, the city’s property investors noticed a steady increase in returns since the announcement of the Expo 2020. Investors who invest in Dubai’s property market are generally keen to invest in off-plan projects, this is mainly because the prices are well below the current market price and also developers generally provide great off plan incentives. In addition, some of the banks give great payment plans which will definitely reduce the burden on your finances.
The purpose of your investment Successful investors are usually those who have a clear sharp plan of the reason why they are buying the property. There are mainly four reasons why people buy a property, we have listed them below.
Buying to sell the ready property. Buying to resell the property before completion [off plan]. Buying to rent the property. Buying to live on the property.
Now it is really important to know which one of these is your plan before carrying on with the next steps. This will affect your strategy, for instance, if your plan is to sell your off plan property on completion, then you will be concerned more with buying the property really early to maximize your profit. In addition, if your end goal is to rent the property on completion you should know which type of property and at which location generally provides good return on rentals, to help you with this don't hesitate to get in touch with one of our agents.
Approximate cost of different projects. Generally, property prices depend on lots of factors such as size, number of bedrooms, location, view and much more. But to give you a general idea of what prices you should be looking at when investing in Dubai’s property market, we list few prices in the table below.
Off plan Projects
Park lane residence
Ready Property (Area)
How to find a property in Dubai? Finding the right property that fits all your needs can be a hectic process, especially if you have a limited knowledge of the real estate market in Dubai. That is why expert highly recommend to get the advice from a highly skilled real estate agent with years of experience and most importantly who works in a real estate company that is approved by the Emirates Government.
Tips on buying the right property Location - This has to be one of the most important points when choosing a property, and usually investors think short term instead of long term when it comes to picking a location. A good location for your property must be ideally close to a good supermarket that will serve all you need, close enough to a hospital, mosque or church, a mall and preferably at a good distance from your kids school. In general, we encourage clients to invest in a developing community rather than a fully developed one, since the future returns will generally be much higher for the developing community project. Some of the locations that we encourage people to invest in include Dubai Marina, Downtown Dubai, Jumeirah and Dubai South. Research your property developer - It is important to conduct a research on the property developer. A common strategy to study a property developer is to look at their previous projects, to help you with this it is advised to refer to a real estate agent. Study the payment plan – It is very important to study the payment plan and have a clear understanding of all the details as this will help the investor determine if the proposed payment plan is in-line with his/her financial expectations.
Steps of buying a property as a foreigner
- Contact a real estate agency to guide you. - Choose the type of property you want (apartment, villa or townhouse). - Make sure you are eligible. - Establish a buyer and seller agreement. - Signing an agreement of sale. - Apply for No Objection Certificate (NOC). - Transfer of ownership with Dubai Land Department (DLD).
We hope this beginner’s overview on buying a property in Dubai was helpful if you still have any question regarding buying a property in Dubai, feel free to get in touch with us and one of our agents will be happy to answer all your question.