5 Things you must know before buying a property in Dubai
Dubai is one of the safest places in the world – not just in terms of living but to park your savings as well. It is also one of the developed real estate markets around the globe that offers enormous benefits, promising returns and exceptional lifestyle facilities. Moreover, its rebound from the coronavirus-induced turmoil – backed by economic support and the UAE government’s initiatives is commendable.
The number of property transactions increased tremendously last year and so is the value of these property deals. Expo 2020 brought visitors to this city, and it is expected that almost 5% of the Expo 2020 visitors have shown interest in Dubai properties – intending to buy a property and continue living there. Despite being so competitive, the Dubai realty market is reasonable as compared to several other established global real estate markets.
A majority of real estate experts unanimously agree that it is the best time to invest in Dubai real estate. However, before buying a property in Dubai, you must be wondering about the things that you must know in advance. Read on this post to find out essentials that you must know before buying a piece of Dubai realty sector.
Location is the most important consideration, no matter where you plan to buy around the world. It is more important to be concerned about in Dubai realty market, where the government has designated large parts of Dubai as freehold areas and leasehold areas. Foreign buyers can invest in freehold areas only such as Dubai Marina, and Downtown Dubai.
In leasehold areas, foreigners can buy real estate on a long lease such as for up to 99 years, such as properties in Green Community Dubai Investments Park.
Another type is non-freehold areas, where only GCC nationals can purchase a property such as Umm Suqeim and Al Barsha.
Arrange your finances
Don’t just get tempted by seeing the “asking price” of the property because a down payment is not the only fee that you need to pay, to purchase a property. You must also consider the total cost of buying a property in Dubai – including legal fees, agent’s commission, transfer fees, deposit, mortgage insurance fees and maintenance charges.
You need to work with a real estate agent and a mortgage adviser to get all the information including the associated costs involved in buying a property in Dubai. Keep in mind that most of the fees attached to the property transactions are paid by the buyer and usually range from 6 per cent to 7 per cent of the total purchase price.
Note: A great advantage of investing in the UAE property sector is that there are no capital gains or income taxes there.
Know what you want to buy?
A property that is bought for the living purpose may be different from a buy-to-let property, which in turn can never be the same as a second home. For instance, you may be interested in a waterfront villa or you may be concerned about a particular school for your kids, or looking for a home around restaurants, shopping malls and public transportation.
If you are buying a property for investment purpose, make sure you understand the market dynamics, market trends, in-demand areas and the rental yield you can expect to earn from your investment. Answering all these questions will help you make a well-informed property investment decisions. You must choose something that will serve your goals well.
Work with a professional real estate agent
To make the most of your investment, you must work with a reputable and professional real estate agent, who is specialized in the particular market segment – you are looking to buy a property in. Before finalizing a particular agent for your property quest, make sure they are certified by the Real Estate Regulatory Authority (RERA). Work with an experienced real estate agent, who has a proven track record of dealing in the area, you are planning to buy in.
He can help you make the best and most well-informed investment decision and can help you bag the best price. You should not work with a freelance real estate agent, as he/she will have no legal recourse.
Plan your exit strategy
No matter, why are you buying a property in Dubai but always keep in mind an exit strategy. Before investing in any area and any particular property type, you must be sure about the current property trends and find out areas that are doing well in terms of rental yields and lifestyle facilities. It is because these factors will help you gauge the future returns and the resale value of the property.
Many properties in Dubai are available at affordable prices but the lack of amenities lowers the overall value and its demand. These are the hidden factors that buyers do not focus on a lot before buying a property but matter a lot, later.
These are a few pointers that you must consider before buying a property in Dubai and if you want to work with a reputed real estate agency, you must work with the team HFRE. You can contact the team through a call or text at +971 4876 2473 or you can also write us at firstname.lastname@example.org. And one of our team members will get in touch with you and help you reach your investment goal.