Dubai real estate space is one of the fastest growing and most lucrative in the world. With the government allowing expats to buy properties, an increasing influx of real estate investments is witnessed. A contribution of several factors has fuelled the realty market, with an anticipation of approximately 10% price rise in 2023.
Despite the cost-push escalation and surging market; an investor is likely to receive an appreciation. And therefore, it would be right to conclude that the real estate market in Dubai is growing from strength to strength.
If you are looking to kick-start your journey in this domain, here’s a guide on how to get going.
8 Things to Know Before Purchasing a Property in Dubai
1.Intend of purchase
Begin by identifying the objective of your purchase. Undoubtedly, Dubai is a second home to gazillions of expatriates across the globe and the property space is attached to a string of benefits. However, the purchase must be subject to the intention of buying. In the sense, are you an investor or the end user?
In the first situation, you must look into a property that derives high rental yield and is a high capitalization bet. If you are looking to buy a property for personal use, indulge in one that suits your needs and lifestyle. For starters, examine the neighborhood area to check if it’s crowded with facilities.
2.Location and connectivity
As a buyer, it is your fundamental right to be content with the location whether it is for investment or living. Dubai real estate can be really overwhelming and choosing a property can be daunting. Make a wishlist of the location and community you would like to own a property in. Even if the home is for investment purposes, it would be wise to look into the connectivity and accessibility.
3.Freehold or leasehold property
If you are a first time buyer, this may seem a bit bewildering. Dubai’s real estate market is distributed between freehold or leasehold properties. In earlier years, foreign nationals could not buy properties in Dubai. However, the government introduced new laws and regulations and established freehold areas for any expats to buy a property in.
Also, there are leasehold areas which are subject to ‘only leasing’ for a period of 10-99 years.
4.Fees and other charges
You must be well-informed about the fees and other charges connected to your purchase. While making an investment, a real estate agent will charge you a nominal fee which should be around 2%. Also, while transferring a property, a registration fee is incorporated.
Some additional fees include Dubai land development charges, mortgage registration fee, property valuation fee, contract fee and property registration fee.
5. Warranty from the developer
Dubai is known for its investor-friendly practices; out of which a major one is not often spoken about. In this city, the developer is accountable for any malfunctioning until one year post construction completion. Also, the company is responsible for 10 years (maximum) from the completion date. So, if you are indulging in new properties for sale in Dubai you should certainly be entitled to all these facilities.
6.Property & price evaluation
When investing in the real estate space in Dubai, one must perform the procedure of property & price evaluation. Dubai has a rule of property sellers providing an inspection report stating the actual condition. In any case, if not provided, you have the right to ask for it and can also hire an agency to do so.
Second is the price evaluation which is equally important. The best way of doing it is hiring a real estate agent. It is almost impossible to determine it otherwise.
7. Factor in amenities
Choose your property type – apartment, villa, mansion, penthouse or townhouse and then factor in the amenities you fancy. For instance, new developers have incorporated facilities like state-of-the art gyms, child friendly amenities, yoga center, club houses, swimming pool, sports center, religious zone, roof terrace, private beach access and more. Understand what your and your family requirements are; then take the plunge. More the amenities, higher the resale value.
8.Seek expert advice
One of the major things to do is seek expert advice from industry experts. Professionals in the field make use of proactive marketing and brokerage techniques which are a mandate to navigate the current challenges in the real estate environment. Also, with the expert knowledge you can be certain of receiving accurate information on new projects and market trends in the evolving real estate space. With the right guidance, sellers and buyers can attain a transparent and safe procedure.
The Bottom Line
Becoming a homeowner is undoubtedly a milestone to many, but doing it with caution is the right way to proceed. It is important to analyze all the facets and be cognizant of the current market trends before making any purchase decision. Do not rush into any conclusion, get started with identifying your budget.