The Arab world was once not suitable for foreign investments due to the instability in the region, with laws and policies opposing it. The laws were very uncertain for the foreign people who were waiting to invest in Dubai. However, in 2002, a freehold decree was introduced as a legislature for foreign investors to buy, sell, lease, or rent a property. This was the revolutionary time from where the boom in Dubai real estate started. The constructions of huge buildings and villas like Burj Khalifa, Burj Al Arab, and District One Villas Dubai started with rapid progress. From that day, the economy of the city has grown into a giant, and the real estate business is increasing day by day. The property investment has become a great attraction for the expats in Dubai.
Buying a property in Dubai is pretty simple as compared to other countries in the world. The buying and selling property is straightforward, there are no hectic arguments and time-consuming processes but still, some people might do fraud so be aware of it.
Here are some essential tips for buying a property in Dubai
UNDERSTAND THE PROCESS
There are two options for you to buy a property in Dubai, off-plan property and resale purchasing. When you are buying an off-plan property, the expats need to submit their passport and fill out the reservation form which contains the outline of the terms and condition of the property. The reservation fee will take around 5% to 15% of the cost. If the property is under construction, then make it sure that the completion date of the project is mentioned in the agreement, you may also check for the compensation to be paid if it is delayed for any reason. When buying a resale property from a private seller, a Memorandum of Understanding (MOU) states the terms and condition of the deal. After that, the buyer gives 10% of the cost as a deposit of the property.
REASON OF PURCHASING THE PROPERTY
The reason for purchasing the property can impact your decision, as the selection of property is based on the reason for buying a certain property. If you are buying a property as an investment, it is recommended to buy one with a good market and high rental demand. The apartment with 2 or 3 bedrooms is more preferable than the opulent villas as these apartments are more likely to be rented out quickly with good yield than these villas.
CHECK FOR REPUTATION OF THE DEALER
If you are planning to buy a resale property, ask tons of questions to the buyer. You need to check the reputation of the dealer, asking questions is your right so don’t hesitate in clearing your doubts. When buying an off-plan property, you should ask for the completion date of the project. The units are not ready in many cases of off-plan properties, so you should visit a show property to get an idea. When buying from a real estate agent, then look for the one registered with Dubai Land Department.
SURVEY THE PROPERTY
Surveying the property is very important, and it usually comes when buying a resale property from the agent. You can take the help of some service provider who can survey and evaluate the potential of the property. It is important, as once you have bought the property, now all the maintenance is on you.
CHECK FOR LIABILITY ON THE PROPERTY
It is your responsibility to check for any liability on the property. You should ask the developer to provide the N.O.C ( no objection certificate), as the developers do several checks to make sure the property is free from all the liabilities and get the N.O.C confirming that the property is ready to be purchased.
Dubai was once a city with strict policies yet just a desert and a port nothing else. From 2002, the progress in the construction of the city was witnessed by the whole world due to the change in policies for foreign investors in the city. The construction of wonders like Port De La Mer Dubai, Emirates Hills, Jumeirah Beach Residence, and The Dubai Mall has made the whole world attracted towards this city. The foreigners want to buy properties in Dubai, but they must be aware of certain things, so they don’t face losses.