Buying a Property
Dubai is a fantastic area to live and work for several reasons, including its high standard of living, the absence of property and business taxes, the amazing lifestyle it offers with its incredible malls, shopping centers, high-end restaurants, and exclusive beaches, as well as its desert landscapes and rich culture.
Nowadays, the real estate market in Dubai is filled with various offers for investors in both the off-plan and ready property sectors. Dubai’s secondary real estate sales sector has experienced growth on a scale not previously seen as record-breaking transactions are being reported by the government week after week.
On the other hand, the off-plan real estate sales sector has experienced a phenomenal growth in transactions as waterfront and beachfront townhouses, villas and apartments are being sold by almost all the leading real estate developers in Dubai with flexible terms and payment plans.
An Investor's Checklist When Buying a Property in Dubai
Are you working with the right broker?
As one might know, the real estate industry in Dubai is a lot different as compared to other countries, it is critical that you work with a reputable real estate agent in Dubai that you can trust, who is also registered with the Dubai Real Estate Authority and Dubai Land Department. Make sure to ask for an agent’s real estate license before proceeding to give any of your requirements when you intend to purchase.
What is the potential return on my investment?
When you buy a piece of real estate, the last thing you want is for its value to decrease over the course of time. Is there a possibility that the value of the property will decrease over time? Do you intend to retain this for the rest of your life or sell it after a certain number of years? Depending on your use of the property, you should never forget to ask this question to the real estate broker you are working with to set your expectations before your purchase. Typically, the average rental return one can expect on a property is between 5% to 10%.
Are foreigners permitted to have 100% ownership of property in Dubai?
In the past, only citizens of the United Arab Emirates were allowed to legally own property in Dubai. On the other hand, in 2006 the government approved Regulation No. 3, which established defined regions in which non-citizens are permitted to own property. In these places, the purchase of property with freehold ownership by non-locals is permissible. Major freehold estates may be found in most areas of “new Dubai,” including Dubai Marina, Palm Jumeirah, Jumeirah Lakes Towers, and Emirates Hills, amongst others.
How much time does it take to purchase a piece of real estate?
After the Sales Contract or the Memorandum of Understanding has been signed by both the Seller and the Buyer, the transfer of the title deed typically takes 30 days from the date of signing of the sales contract or MOU. The transfer of the property should always take place at a Trustee Office in Dubai.
On the other hand, off-plan real estate transactions typically take place between one (1) to three (3) days, provided the Buyer provides all the documentation required and makes the initial deposit to generate a Sales and Purchase Agreement. After the Buyer signs the Sales and Purchase Agreement, an Oqood will be generated and given to the Buyer.
What are the amenities in the location?
For someone buying a piece of real estate, it is vital to consider the amenities inside the community before purchasing. For a client looking to purchase for the purpose of end-use, the agent should consider amenities such as schools, hospitals, and parks to name a few.
Our agents at Springfield Properties understand that every client has a different requirement depending on their lifestyle so clients can make sure that we have their best interest at heart and will tailor-make our suggestions based on their requirements.
When will I get my proof of ownership?
For a client to purchase a ready property, the title deed of the property should be available at the time of the transfer of the property. A transfer of property typically takes 30 days from the date of signing of the MOU and will be conducted at a government office in Dubai.
For a client purchasing an off-plan property, there is typically a payment plan associated with the purchase with the full payment of the property payable on the handover date. If you are purchasing an off-plan property, after you make the initial deposit of 10%, the developer should prepare the paperwork and have you sign the Sales and Purchase Agreement of the property after which an Oqood can be obtained from the Dubai Land Department. The Oqood will serve as your proof of ownership until the property gets handed over and you pay 100% of the property.
What are the extra charges when buying a property?
If you’re buying in the secondary market:
• DLD Transfer Fees amounting to 4% of the property’s net selling price.
• DLD Trustee Fee of AED 4,200 and Admin Charges of AED 580 (approximate prices)
• Real Estate Brokerage Agency Fees amounting to 2% of the property’s net selling price + 5% VAT
• Conveyancing Fee charged by the Real Estate Brokerage
If you’re buying an off-plan property direct from a real estate developer, aside from the initial deposit of 5% to 10% of the property’s price, you should expect to pay the following:
• DLD Land Registration Charges amounting to 4% of the property’s net selling price.
• DLD Trustee Fee of AED 4,200 and Admin Charges of AED 580 (approximate prices)
The Springfield Advantage
We make it our priority to provide clients with accurate information that is in line with the most recent developments in the industry including the following high-quality services:
• The best deals in the market tailor-made to a client’s requirements
• Provide clients with the best agents in the market equipped with the right tools and knowledge
• Offer property deals with flexible payment plans
• Free after-sales service on a client’s purchased property.
As an award-winning real estate brokerage firm, Springfield has collaborated with all the leading real estate developers in the Dubai, including Emaar, Meraas, Dubai Properties, DAMAC, Nakheel, and SOBHA to name a few to maximize the opportunities that best meet the requirements of investors. This allows us to provide investors with the best possible returns on their investments.
Clients won’t have any trouble finding the home of their dreams with the assistance of our knowledgeable real estate agents, who are experts in Dubai’s real estate market. We always make sure to provide clients with honest answers to any of their inquiries regarding the potential investment property or second home that they are considering purchasing.
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Office 104, 105 & 106
Bay Square, Building 2
Business Bay, Dubai, UAE - [email protected]
- +971 54 561 6583
- +971 4 4542588
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