Dubai has the world’s fastest booming property market, investors, developers, as well as people from all over the world, want to work and invest in Dubai. It has become the most fashionable as well as a desirable place to settle. Dubai offers luxurious living at a very reasonable price. The amenities, as well as facilities in Dubai, are designed to cater for a comfortable lifestyle as well as a luxury at its best.
If you are looking to buy property in Dubai, here’s our ultimate guide:
Where to Look
Whether you are looking for a villa or an apartment, buying property is a considerable decision as well as a considerable investment, which means you will have to be very prudent about your choice. You can look at projects on the sites that are provided by developers, but the real feel of any project can only be experienced on site.
You need to be clear about the kind of project you are interested in. What do you want? Do you want to be in the center? Or are you interested in community areas that are perfect for budding families?
House Buying in Dubai
First thing’s first, you will need a realtor, one who you can trust to see you through the whole buying process. Whether you are buying a ready project or an off-plan one, a realtor is a must addition. Buying property in Dubai isn’t difficult if you are a foreign national as long as the property is in the area that is designated for this purpose by the Ruler of the Emirate of Dubai. Even if you don’t live in Dubai, you can buy a property here.
Freehold or leasehold
- Freehold is when you buy the property, and it transfers into your name.
- Leasehold is when you lease out the property for a said time between 39 to 99 years.
These are the two main types of properties available in Dubai. Leasehold is more expensive than freehold in Dubai, so make your choice keeping this factor in mind.
How long is the procedure?
As soon as the agreement of sale is signed, the property is deemed yours, but even after that, it may take as many as 30 days to transfer and to finalize all transactions.
You first signed the Memorandum of Understanding, after selecting a property, and then you pay the down payment or deposit that is 10 percent of the whole amount. The buyer and the seller together then file a NOC. Only after this, a property can be sold. The seller needs proof that you have funds to follow through, or they can decline the NOC, and the sale will not happen. After the NOC you can transfer the property in your name at the Dubai Land Department. The payment is done in the form of a manager’s cheque that is only payable to the seller on the date of transfer.
A mortgage in Dubai
Buying on a mortgage means that you don’t need to have the funds, your lender or bank will have to show the funds, till then the NOC will not be issued. It takes more time to buy a mortgaged property.
Cost and Other Fees
Following are the fees and cost of buying a property in Dubai:
- NOC: The fee is between AED 500-5,000, mainly it depends on the value of the project. The seller pays the NOC fee to the developer.
- Estate Agent’s Fee or Commission: 2% of the purchasing cost of the property.
- Transfer fees: 4% of the purchase cost, as well as AED 5,000, is paid to the Dubai Land Department.
- Mortgage Registration: 0.25% of the loan amount is paid to the Dubai Land Department.
Top Spots to Buy Property
The most luxurious yet reasonable projects such as Emaar Forte block and Harbour Views tower. The Emaar Ranches development also have perfect villas and mansions for families for a comfortable lifestyle and open-air amenities.
Flats at BLVD Heights in Downtown Dubai as well as low-rise Park Point in Dubai Hills both offer luxurious living in the heart of Dubai.