5 things to consider while buying property in dubai
5 Things to Consider While Buying Property in Dubai
Dubai, a melting pot of cultures, has emerged as a global residential and commercial hub over the decades, in addition to being a major international tourist destination. With its ever-growing expat population, expanding business opportunities, and unparalleled infrastructure, Dubai has demonstrated in every way that sky’s the limit. Buying property in Dubai is a significant decision requiring thorough planning. Here are some things to consider before buying a house of one’s dreams in Dubai:
Understand specific requirements
The first step to shortlisting a house in Dubai is to understand one’s requirements vis-a-vis various factors, including the number of inhabitants, one’s budget limit, and proximity to one’s workplace, school, university, etc. Such factors can help figure out the areas that can strike the right balance between satisfying one’s needs while falling within the budget range.
Determine an ideal location
The price of property in Dubai depends significantly on its location within the city. For example, areas such as Dubai Sports City and Jumeirah Village are generally known for their relatively affordable housing rates, although the size of the property also plays a role in determining its price. Thus, it is a good idea to compare property rates in different localities and earmark the affordable ones. One may then determine which of these locations suits one’s requirements the best and shortlist a final location accordingly.
Check foreign policy if applicable
Expats should check out the policies and terms pertaining to the ownership of property by foreign buyers before purchasing a house in Dubai. For example, expats are allowed to buy and own property in areas designated freehold in the city. Downtown Dubai, Business Bay, Discovery Gardens, Dubai Sports City, and Dubai Marina are some areas in Dubai that are classified as freehold. In addition, while some of these areas may allow expats to own only apartments, some others may allow for ownership of apartments as well as luxury villas. Moreover, today, property ownership by foreigners is also being allowed in certain non-freehold areas. Hence, it is important to understand these policies and abide by property ownership laws while looking for a property for sale in Dubai.
Understand the objectives of buying property
While buying property or land in Dubai, buyers should consider whether they will be the end users or investors. In case of the latter, it is essential to consider the nature of ROI expected and the investment timeframe. Such considerations can help one make the right decisions on the type of property to purchase, its location, whether to invest in an ongoing project or a ready-to-move home, and so on.
Plan finances adequately
One of the most crucial aspects of buying a home is to organize one’s finances. Besides figuring out the down payment amount and home loan requirements, one should research the expenses that may be incurred over and above the base property rate. For example, other types of property-related expenses, such as transfer fees, agency fees, and mortgage arrangement and insurance fees may be applicable to the buyer. One must also be aware of the Dubai Land Department (DLD) registration fees, which is typically 4% of the property rate and whose expenses are either split equally between the buyer and seller or paid entirely by the buyer. Such additional charges should be considered while estimating the aggregate expenditure.
References
https://dxboffplan.com/10-essential-things-to-know-before-buying-property-in-dubai/
https://www.propertyfinder.ae/guides/factors-to-consider-when-buying-a-home-in-dubai/
https://www.99acres.com/articles/most-affordable-areas-to-buy-a-property-in-dubai.html
https://www.bayut.com/mybayut/complete-list-freehold-areas-dubai/
https://www.axcapital.ae/blog/detail/top-freehold-zones-in-dubai-for-investment
