What is the process of-buying-a-property in Dubai

What is the process of buying a property in Dubai

Picture of Fasih Uddin
Fasih Uddin

Founder I Sales Director

Dubai—the name in itself carries a certain allure. This charm is also due to the fact that it is a hot destination for buying property for various purposes, including investment, commercial, professional, and residential.

But exactly what is the process of buying a property in Dubai? We are sure this question may be bugging you if you are interested in owning property in Dubai. Let’s resolve this query today.

Table of Contents

What is The Process of Buying a Property in Dubai- Step-by-Step Breakdown

Whether you are interested in buying a house or a commercial property, there is a distinct procedure to buy a property in Dubai. Understanding it and conforming to it is crucial so you navigate the process seamlessly and legitimately.

Here’s what you need to do when you plan to buy any kind of real estate in Dubai.

Determine Your Budget

First things first- you cannot proceed with buying a property in Dubai, or as a matter of fact anywhere else in the world unless you have an understanding of your budget.

Before even moving to assessing different kinds of real estate in Dubai, first carry out a detailed analysis of your finances. You need to have an understanding of the range of property prices in Dubai to determine your budgeting requirements.

Also keep in mind the registration fees, maintenance and management fees, agent commissions, security deposits and additional costs that may come into play when buying a property in Dubai.

Select the Property You Wish to Buy

Next, you need to conduct a thorough market research on the different properties in areas that interest you keeping your finances into account.

We understand how cumbersome this process alone can be, so we have simplified it for you

Identify Your Objectives

First, you need to define your objectives clearly. What are you buying the property for? What is its purpose going to be? Are you buying a house in Dubai for expats? Are you purchasing it for investment, or personal use, or professional use, or a blend of all three?

Clarifying your objectives is crucial so you can then steer your property search in the right direction.

Decide on the Location and Area

Location and area of the real estate again, is a critical factor in going forward with buying it. For that too, you need to go through certain factors:

Purpose of Buying the Property

Assess your lifestyle requirements and preferences if you are thinking of buying a house in Dubai. The area you live in directly affects your lifestyle so choose it wisely. While the city is brimming with great localities to live in, some of the best residential areas in Dubai include Jumeirah for its beach-front and upscale villas, Palm Jumeirah for its luxurious villas and apartments, Dubai Marina for its waterfront apartment and modern penthouses, Arabian Ranches for their townhouses and villas in a family-friendly community, Downtown Dubai for its upscale apartments and Emirates Hill for its extravagant villas.

Make sure to choose an area that aligns with your preferences, be it the area’s proximity to work, waterfront living, having family-friendly amenities, or being luxurious in nature.

Similarly, if you are seeking to purchase properties for investment purposes, you need to understand your needs accordingly. Apartments in areas such as Downtown Dubai, Business Bay and Dubai Marina have a strong demand and supply equation, from both buyers and tenants. So they can supply you with stable rental income, and also have potential for constant capital appreciation. You can also consider off-plan properties such as those in Dubai Creek Harbour and Dubai Hills Estate.

As for owning property in Dubai for professional purposes, Business Bay, Dubai International Financial Centre (DIFC) , Jumeirah Lake Towers (JLT), and Sheikh Zayd Road are ideal. They are prominent business districts offering a range of office and commercial spaces making them good spots for setting up your office.

 

Size and Layout of the Property

Do pay attention to the size and layout of the property you are planning on purchasing. Assessing your space requirements according to your family’s size or own needs (for residential real estate), or business requirements for commercial real estate is integral to buying the right property. When doing so, analyse the design and layout too.

Facilities Being Offered
Facilities Being Offered

Moving on, explore the facilities and amenities offered by a certain property and its adjacent community. If you have school going kids, you will need to consider buying a house in close proximity to their school, or perhaps move to an area that offers a school. Amenities you should consider in a residential area include parks, hospitals, schools, gyms, public transportation options and swimming pools.

Once you have enough clarity on the kind of property you want, it is time to connect with a real estate agent.

Buying or leasing a property is not a very hassle-free job. It can be made into one though. 

Enters a real estate agent- your knight in shining armor who has the power to add convenience to the entire procedure to buy a property in Dubai.

It is not mandatory to get the expertise of a real estate agent, but honestly, they do make the process really smooth. Real estate agents or real estate consultants, especially seasoned ones have excellent property search expertise and are aware of the latest industry trends, market value of property, neighborhood dynamics and local market so can assist you in making an informed decision.

Additionally, real estate agents have access to many property search databases and listings which allows them to conduct elaborate property search. So once you are in touch with them, they take over your pains of finding the right property.

Another major reason why hiring a real estate agent is a wise approach is their negotiation skill. Mastering the art of communication and negotiation, real estate agents do their best to ensure you score a great deal.

Make an Offer on the Property

Your next step is to submit a buying offer to the developer or seller. It should specify the purchase price, payment terms as well as any conditions you need to add in the agreement. 

This is the point where you can set a validity period for the offer. You would also have to provide proof of the funds you have for buying the property. Consult with your real estate agent if you should prepare the legal documentation at this point. It is usually a good move, but in case your agent suspects your offer may be rejected, it is best not to proceed with the documentation beforehand.

Proceed with Sales Agreement and Due Diligence

If the potential seller accepts your respective offer, draft a sales agreement aka Memorandum of Understanding (MoU.) You can get your agent’s assistance with this task too. The MoU basically lays out the terms, conditions and regulations governing the sale and owning property in Dubai, including all the contingencies and payment schedule.

It is important that you carry out all the due diligence on the real estate you are buying. This can include detailed property inspection, confirmation of the estate’s legal status, and the verification of its title and ownership.

In case the property lies in a freehold region, make sure to get a No Objection Certificate (NOC) from the homeowner or developer’s association. The NOC confirms the developer’s/ seller’s approval for sale, and is typically provided by them.

Pay the Deposit and Get the Ownership

Pay the Deposit and Get the Ownership

Moving forward, pay your deposit which is mostly 10% of the purchase price of the property. In case you are financing your purchase via a mortgage, get the bank’s pre-approval, and make sure the financing is ready timely.

For the ownership’s transfer, you would need to meet the developer/ seller at the Dubai Land Department (DLD), or even a trustee office in order to finalize the property transfer. Both the parties will have to sign the ‘sale deed’ as well as pay the fees involved.

Once the transfer of ownership is complete, you will get a title deed by the DLD that will deem you as the rightful property owner. Make sure to register the utilities such as gas, water and electricity pin your name, and have them transferred to you from the seller.

After you are through with the legalities, the procedure to buy a property in Dubai comes to a wrap and you can start enjoying your new property. Kudos to you!

Owning a Property in Dubai is Seamless with Elan

Now that you are well aware of the process of buying a property in Dubai, get started with it. It is understandable how you may be occupied with tons of other responsibilities and work, and may not have time for the entire process. This is why Elan exists to make the process seamless for you.

Get in touch with us today, and let our expert take care of the rest for you.

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