Everything You Need to Know before Buying a Property in Dubai

Are you interested in properties for sale in Dubai? Be advised that more and more people from other countries are interested in purchasing a home in UAE than ever before.

When the world's economy is down and stock markets are tanking, people look for housing bargains. Many of those bargain-hunting home buyers look in safe countries such as the UAE. 

A survey by HSBC in 2021 rated Dubai as one of the top five best cities to live and work in. Participants in the survey cited an improved quality of life, career opportunities, and better income as reasons that made the city attractive.

If you are one of these people considering buying property in the city, this article will list everything you need to know before signing that contract.

Factors to Consider before Buying the Property

Whether you are using the property personally or as an investment, consider the following factors first:

• Location and size of the property
• Community amenities such as proximity to public transport, education, and childcare
• Quality of the property
• Market conditions and timing of your purchase
• Maintenance costs

It is best to consult with a property agency to save your time and do the research.

Get a Reputable Agent and Developer

Property agencies and developers are in the business of making money and do not necessarily help you to buy your dream home. To avoid falling for the trap of unscrupulous salespeople, get a reputable agent and developer to help you find the best deal.

Make sure to look at the property developer's reputation and track record of quality and delivery on time.

Understand Purchasing Procedures

The property you purchase can either be "off-plan" from a developer or as a "resale" from a private seller. Purchasing off-plan requires documentation such as:

• Passport of the buyer
• Reservation form outlining the terms and conditions of the deal
• Paying a reservation amount of 10-25% of the property to draw up a Sales and Purchase Agreement (SPA) committing both parties to the deal

These purchases are fast and easy, taking up less than a couple of hours. The buyer can do it from anywhere in the world without being physically present in Dubai.

Buying from a private seller requires the following:

• Memorandum of Understanding (MoU) outlining the terms and conditions of the deal
• A 10% deposit of the property to confirm the purchase
• Authorized Power of Attorney if you are transacting through a representative instead of going to Dubai personally

This process may take from anywhere within two days to two months, depending on the deal's complexity.

Ensuring Your ROI

If you are purchasing the property as an investment, you will have to look at the property market and look for properties with high rental yields. 

You may want to consider smaller apartments such as studio and one-bedroom communities with established infrastructure close to essential amenities. These units can resell faster compared to larger-sized properties.

You get additional value near beaches, shopping malls, and other landmarks.

Conclusion

Dubai continues to be a popular destination for many people looking to invest in a second home or use it as an investment property. Make sure that you get the best deal for your money and invest in a property that will be profitable to you.

Are you looking for an agency to help you buy property in Dubai? Dacha Real Estate is a world-class business hub offering residential and commercial property. Contact us to learn more!