Dubai is a city that was established in the 18th century as a fishing village with a population of about 800 people. In the past 20 years, the city has grown beyond anyone’s imagination. Now it’s the second city in the world with the highest number of five-star hotels and has the tallest building (Burj Khalifa) too. Property developers in Dubai are investing in a well-ordered, industrious city with mesmerizing waterside locations and unmatched luxury aesthetics. That’s why investment opportunities in Dubai are opportunities to invest in the future because at this scale of evolution, who knows what Dubai will be like after 20 years. Buying a property in Dubai is possible for people of different nationalities. In order to do that, you need to define your needs, understand your financial status, and know where to look. Make sure you go through our comprehensive guide before you decide to buy a property in Dubai.
To start looking for an investment property in Dubai, you must define and understand your needs. Understanding your investment objective will help you decide how much money to spend, where to invest in Dubai, and which units to look for. Ask yourself why are you looking for a property in Dubai. Is it for investment or your personal use? Then, do your calculations to know how much money you are willing to spend, considering all administration, commission fees, and the property’s original price. Whether you’re looking for 1, 2, or 3-bedroom apartments, luxury properties, or villas in Dubai, you’ll find properties with different space options in different areas to fit different price ranges all over this city. You can also choose between ready-to-move or under-construction properties. So it’s always a good idea to weigh the pros and cons of your desired property before committing financially. You can’t go wrong with investing in Dubai, as it’s known for the most attractive rental yields in the world.
In order to decide where to buy a property, you have to research and visit different communities and areas that you feel are suitable for you. Attend open houses to inspect the Dubai properties for sale and their areas. Eventually, your budget and lifestyle will determine the right community and location for you, but choosing a property advisor from a trusted developer such as Sobha Realty will help you to provide privileges and better prices when you buy a property from one of their many projects. You can also go for real estate companies in Dubai that will show you the available properties from different property developers in Dubai. Once you choose your property advisor, contact him and communicate your requirements to visit different properties according to your needs and budget. ( change word agent to something else, maybe property advisor
There are three different types of properties in Dubai. You need to understand their differences before investing or buying a property in Dubai.
Generally, it’s the most common option to look out for apartments for sale in Dubai. These are particularly apartment complexes, where you own the property but don’t own the land on which the property is built. Under this ownership, you are required to pay for additional fees as maintenance and utility services after they are divided among all property owners in the same building. Owning a commonhold property doesn’t allow you to make structural changes, but you can buy, sell or rent the property, and pass it into your inheritance.
Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Jumeirah Lake Towers, Palm Jumeirah, and Business Bay are areas where you can find commonhold apartments in Dubai. You can also find some of the best apartments in Dubai at Sobha Crest Grande and many other Sobha real estate projects as well.
Freehold property is like a villa in Dubai or a stand-alone property, where you own the property and the land the property is built on. You are not required to pay any maintenance or other fees, but you’re responsible for them as you are the only owner. A privilege for freehold properties is that you can make any structural changes you want to the building and the land as you own it as well. Freehold properties are the same as commonhold properties in terms of selling, renting, and inheriting the property. You can find various types of villas that will suit you if you’re looking for a freehold property.
Buying a usufruct property is like signing a long-term lease that ranges from 10 to 99 years according to UAE law. You cannot destroy the property or turn it into an unused space. Early termination of the usufruct agreement is possible generally due to the destruction or termination of the property issued by the court.
When you’re ready to make a decision after choosing the property you’re interested in, involve your real estate agent to make an offer and negotiate with the seller.
Once the deal is done, you must formulate a contract between you and the seller. Make sure to have assistance from real estate agents or brokers from well-known companies and that both parties are present to finalize the deal to avoid any confusion about the selling price, mode of payment, and any other factors.
Now, one of the final steps is to sign a Memorandum of Understanding (MOU) or referred to as Form F, which will be provided to you by the real estate broker. Make sure you have a check for a 10% deposit for the seller and another 10% as a security deposit to be returned to you when the property transfer is finalized.
After signing the contract, you must go to the developer’s office to receive a No Objection Certificate (NOC) and pay a fee of (500 – 5,000 AED) according to the developer.
After successfully signing an MOU and receiving a NOC, the last step is to visit the Dubai Land Department office to transfer the property. Make sure you have all the documents needed and a check for 4% of the property price as an administration fee.
Congratulations, now you’re the new owner of the property. You can live in it and enjoy the luxurious lifestyle of Dubai or rent it out and increase your income, and in 10 years, it’ll be worth at least double the price you paid!