Dubai has received the highest global recognition in the Gulf region for creating its own form and flavour of urbanism. Most of Dubai’s urban planning portrays either the city’s history, its rapid pace of development, or its informal urbanism. From astounding skyscrapers and artificial islands to marvellous premium villas for sale in Dubai, this city has offered a fair share of concrete treats.
From cosmopolitanism to urbanisation, this emirate has undergone a massive development. This city has bloomed and flourished from being a single housing cluster in olden days to a group of contemporary real estate developments. From the boom of the pearl industry to the post-oil-discovery era, Dubai had offered suitable housing facilities to merchant immigrants, construction workers etc.
National Housing Scheme
Later, the UAE government started the implementation of the NHS (National Housing Scheme). The state’s focus on supporting the welfare of the local population by subsidising plots for its citizens greatly altered Dubai’s housing landscape. This policy facilitated suburban growth and sprawl. When neoliberalism and economic diversification strategies were instituted in the 1990s, flourishing commercial activities attracted and retained numerous workers and businessmen; migrants with a wider variety of skills and backgrounds now come to Dubai than in the early migration waves of the 1970s.
Consequently, housing patterns emerged that fulfilled the needs of this new wave or a swarm of expatriates. With its strong economic growth, the UAE’s property market has become more appealing than ever to investors and buyers.
A Bird’s Eye View of Dubai Real Estate
According to the Dubai Land Department, Dubai real estate transactions in May 2021 totalled $3.02 billion.
The UAE’s real estate sector is on a strong growth trajectory after a rocky year and is moving forward as it recovers from the global Covid-19 pandemic-induced downturn. During the epidemic, the UAE took on the role of a safe haven, providing a much-needed break from the lockdowns that popped up all over the world.
Dubai real estate market returned strongly in the second half of 2021 due to factors like stimulus packages, visa reforms, and high demand from investors and end-users. Experts credit the country’s efficient crisis handling, assistance measures to increase business ease, and long-term residency restrictions as key causes of the recovery, which saw the largest number of total residential transactions since 2015.
Is buying a plot worth it?
Many people consider real estate an investment that grows in value over time and provides a promising return on your capital. Most people also see purchasing real estate as an emotional experience because it involves creating a house where family members may share memories. Before deciding to purchase land in Dubai, expatriates and locals should consider a few factors, whether they are investing in real estate for financial gain or to reach an emotional milestone.
Regarding investment opportunities, land has historically proven to be more lucrative and profitable than ready-to-move-in residences. The profits and gains also depend on several factors, such as the neighbourhood where you have bought the land and the total area of the plot. Investment in land is often lesser than for a ready unit. However, this is offset by the construction costs.
Communities such as Dubai Hills Estate and Dubai Creek Harbour offer beautiful ready-to-move-in homes. However, some of us may have plans to purchase land and construct homes according to our preferences and liking. You must keep in mind that these plans have limitations. There may be stringent restrictions on the type of property you can build, depending on the developer you are buying from. Additionally, you will need to obtain the land department’s and the developer’s approval for any architectural plans and blueprints.
Do your homework if you are an expat considering purchasing freehold residential properties for sale in Dubai. In Dubai, for instance, you may find out what a freehold property is. Ensure you are working with a highly-reputed and honest real estate agent and know all the conditions associated with this kind of investment opportunity in Dubai.
Thinking of buying a plot: Take one step at a time!
Buying a home or buying land first and then constructing a customised home is a crucial decision. These processes require careful planning and consideration to ensure that all demands are addressed.
Before purchasing real estate in Dubai, prospective purchasers should know the expenses, procedures, and legal requirements.
Know your preferences and requirements
Make sure you know the particular requirements and the kind of property you are looking for. It is crucial to understand realistic prices of Dubai properties and the aspects that affect these prices, such as location, view, facilities, and the community where the plot is.
Do your research and hire the ideal real estate agent
Finding the best Dubai real estate agent to work with is essential in your process of buying land and building your home. You need a guide that can properly help you through the procedure and fully comprehends what you want. It goes without saying that they should be completely licenced and have a successful track record. Moreover, they should also be entirely committed to helping you achieve your goals.
Freehold vs. leasehold
The laws governing freehold and leasehold transactions differ significantly. As a result of the complete ownership it offers, freehold is frequently the most desirable option. Make sure to choose the option that will best meet your demands in advance and let your agent know to avoid any hiccups or potential disappointment in the longer run.
You might be shocked to learn that buying properties for sale in Dubai does not require you to be a resident of the UAE. According to the Dubai government, anyone can purchase real estate in a freehold location, regardless of country or location.
Plans and schedules
An average real estate deal in Dubai takes 30 days to complete, starting when the Agreement for Sale is signed. Nevertheless, several factors, like the season and the kind of customer, might impact these timelines.
A full cash-to-cash transaction, for instance, will close more quickly than a mortgage buyer to mortgage seller transaction. Give yourself a schedule that allows for some flexibility in light of this.
Protocol and procedures
- An Agreement for Sale and / or Memorandum of Understanding must be signed once the buyer and seller have reached an understanding. Payment is also needed at this point to demonstrate commitment.
- The seller must then pay any unpaid fees to the developer, such as service costs, and apply for the developer’s No Objection Certificate (NOC), which permits the seller to sell the property in exchange for a one-time fee.
- The lender bank will be involved in this process if the buyer is acquiring a mortgage. The buyer must pay off the seller’s mortgage in full before submitting the NOC application if the seller has a mortgage on the property. After issuing the NOC, ownership can be transferred formally. Both sides are present at this meeting, which takes place at the offices of the Dubai Land Department (DLD). On the date of transfer, the purchase price must be paid using a manager’s check made payable to the seller. A new title deed in the buyer’s name is issued after these formalities are finished.
The Significance of Document Check
Make sure you have the appropriate paperwork on hand so that you can stay on schedule. The ensuing paperwork is necessary for a smooth transaction:
- IDs of the buyer and seller
- The property title deed;
- The developer’s NOC;
- The seller’s service charge clearance letter; and
- The buyer’s bank offer letter (if it is a mortgage buyer)
- Final bills: DEWA, A/C, etc.; Evidence of mortgage settlement
The completion phase
The following step is completion; after all transactions are finished, payments are made, and everyone is on board. Completion day is the much-anticipated milestone when the property finally becomes yours after what has probably been a difficult period. It is time to grab the keys or key cards and take in this historic moment.