How To Buy Property In Dubai in 2022; If you are planning to invest in a property that will give good returns in the future or start earning returns as soon as you take it, then you will not find a better option than Dubai.
Dubai is the most popular destination where one can invest in property. A few years ago the law was changed to open up Dubai’s property market to foreigners.
Buying property in Dubai is very easy provided you have that much money. I have been living in UAE since 2007 and working as a Property Rental Agent. Even after living here for so many years, I could not buy the property. Well, it happened because of some wrong decision of mine.
I will give complete details about how to buy property in Dubai in 2022 as well as a few places where you can earn good returns with less investment. You just have to read the article till the end.
- How To Buy Property In Dubai
- Finding Property
- Eligibility Documents
- Determine Full Cost of Property
- Try To Get a Mortgage in Dubai.
- How To Buy Off-Plan Property
- How To Buy Resale Property in Dubai
- Where to Invest in UAE for Better Returns.
- Precautions For Buying Property in Dubai
- Frequently Asked Questions
- Can I buy a house in Dubai if I am from Pakistan?
- Can I buy an apartment in Dubai if I only have a tourism visa?
- Can UK residents buy a home in Dubai?
- Is it a good idea to invest in a property in Dubai?
- Is it profitable to buy a house in Dubai?
How To Buy Property In Dubai
The rules for buying and selling property in each country are completely different from each other, but buying and selling in Dubai is very simple, let us know what steps you should take before buying a property.
- You have to be sure what type of property you want to invest in. Westerners are often interested in purchasing apartments, townhouses, or villas, some of which are usually located in secure complexes with leisure facilities such as swimming pools, playgrounds, and gyms.
Some of the most popular, luxurious, and expensive developments include Emaar Towers, Pearl Jumeirah, Medical City, Jumeirah Gardens, and International City.
- Today when it comes to anything, the first thing people pick up is the phone. Use it and search for online properties in Dubai. You need to list at least 10 option properties. You can buy a property directly from a property developer or a property agent.
If you buy a property through a property agent, you are definitely going to cost you dearly as they usually resell properties. I would recommend you buy off-plan properties from developers which may still be under construction. Rest assured that it is almost impossible to lose your invested money.
- Hire a property specialist agent. Since investing in Dubai costs a huge amount, you can hire an expert to assist you in your search, keeping in mind that he or she should have expert knowledge about the property market in Dubai. Check his track record. He will help you find a good property for you. Rest assured real estate companies hire high-quality professionals to negotiate with overseas buyers.
An estate agent’s commission charges 2% to 5% of the value of the property. Hiring an agent protects you from losses in the future as the laws and regulations in Dubai change very quickly. Always check their credentials before getting hired, they have to register with the regulatory body for real estate in Dubai, which is the Real Estate Regulatory Agency (RERA).
- Attend Dubai property fairs, make sure you have made up your mind that you want to invest in Dubai property, then visit property fairs organized by RERA in every country where you can meet developers and you will be able to buy a property. Here you get complete details. Make sure all Dovolers from Dubai Land Department are licensed developers.
- By the way, it is better to do a physical check before buying anything. If you have decided then you must go on your trip to Dubai because almost every 1 kilometer in Dubai you see a township being built. Inspect the property physically, visit and see what facilities are available around it.
- Focus on asking the developers or agents the questions you need. After that, you take some time to think and then decide which property you want to invest in.
After the change in Dubai law in 2002, it has become very easy for foreigners to buy property in Dubai. However, you will need some important documents. You do not need any kind of residence permit to invest in property as you have to spend a long time there then there are some things to keep in mind.
- You must have a valid passport to prove your identity.
- You have a six-month UEA visa for property buyers, known as a “property holder visa”.
- You must have more than 1 million dirhams to invest for this visa, which is roughly equivalent to $272K.
- You should buy as an individual, not a company.
Determine Full Cost of Property
Since you are investing in another country, you need to make sure that you are able to afford the property. When determining the cost of a property in another country, always take into account the potential for fluctuations in currency exchange rates as well as include the purchase price, deposit, transfer fees, and property agent fees.
- Hire a lawyer person to help you negotiate all the paperwork, this is not legally required, but it is advisable from a security standpoint.
- Around a 2% land registration fee is charged for the new-build properties.
Try To Get a Mortgage in Dubai.
It is very difficult to get a mortgage facility in Dubai, it will be even more difficult when a foreigner is looking for it. Non-status/self-certification mortgages are not available in the UAE. In some cases, I have seen 20% to 50% of the value of the mortgage available. But for this 50% cash deposit is required.
I ask my common friend about the mortgage who is working in RAK bank. I am sharing with you what he told me.
- In Dubai, the 15-year mortgage is paid on a monthly basis, which is common. If you are an Indian resident means you cannot mortgage your property in Dubai and take a loan and are also not allowed to guarantee loans from non-residents.
- Mortgage repayment, along with any other monthly expenses, should not exceed 35% of net monthly income.
- Mortgage regulations in Dubai change frequently, so try to stay up-to-date with local news and consult with the Central Bank of the UEA.
How To Buy Off-Plan Property
Off-plan property is an unstructured property that you can buy directly from a developer or in some cases from the first owner.
When you buy an off-plan property directly from the developer, you usually have to pay a 10-20% down payment and sign the SPA (Sales Purchase Agreement).
Depending on which developer the balance is paid, it can vary but it is varied and usually linked to construction.
Follow the instructions if you try to purchase the Off-plan property in Dubai
- Submit the reservation form along with the passport. Carefully read the basic terms and conditions of the sale agreement, payment plan information, and personal information of both parties.
- After agreeing on the reservation document, now is the time payment of the reservation amount. This is mentioned in your reservation form, usually between 5% to 15% of the purchase price. When you pay this amount the developer enters into the official sale. Sometimes the reservation price is 20%. Ensure that the reservation amount should be in pay for a RERA-approved security account.
- Complete your sale and purchase agreement, this is a formal and legally binding contract. Make sure the building completion date is mentioned on the document and what penalty will be imposed on the developer in case of delay.
- As soon as you have paid off 100% of the property amount, you will need to transfer the deed to complete the purchase. Remember that you will not own the property until you have paid in full.
How To Buy Resale Property in Dubai
- To buy a resale property in Dubai, you and the seller need to enter into a Memorandum of Understanding (MOU). The purchase price, last date for payment, and terms and conditions will be mentioned on it. It is not mandatory or legally binding but is a necessary first step in buying a property.
- The initial payment you pay when you sign the MOU is usually around 10% of the property amount. It is non-refundable if the deal will not be done on your behalf, but the advance deposit is refundable due to certain reasons.
- Once you complete the settlement and financing, you can complete the purchase. As an expatriate, you have to pay 100% of the purchase price before transferring the property. To do this, you need to attend an appointment with the land department and submit all the paperwork.
Where to Invest in UAE for Better Returns.
Where I was at the beginning of the article, I will tell you about some of the places where you should invest with the expectation of good returns for the future.
Dubai is currently very expensive in terms of investment. I am saying this because the cheaper the property, the more your profits are expected to increase. You can’t compare it with penny stock.
My first choice is Sharjah where you can invest your money. Because till now, there was a lack of development around Sharjah airport, but the Sharjah government has started many projects here very fast. Now is your good chance.
Second, if you want good returns by investing in an affordable property, Ajman is a great option. Because most of the people who live in Ajman or work in Dubai. If you buy the land and build a four-storeyed building, you will get good monthly returns.
Precautions For Buying Property in Dubai
Because you are investing in another country then you need to be very careful. Your signature on the wrong paper will destroy your life capital as you have no proof. If you have collected the right paper then 100% justice will be done with you in Dubai.
- You must first hire a good lawyer to check all your papers and save you the hassle. Yes, it will increase your cost by 2% to 5% but you will be completely satisfied and safe.
- Another developer and property agent who sells property on lease to you is a big fraud in Dubai across the UAE. You should always invest in a freehold property. For which read the paper thoroughly.
- The developer from whom you are going to buy the property should be registered and licensed with RERA and must check it.
- Don’t believe anyone must visit Dubai and investigate the property.
- Make sure before payments, the account of RERA-approved.
Frequently Asked Questions
Can I buy a house in Dubai if I am from Pakistan?
Yes, since 2002, any foreigner, including Pakistanis, is allowed to buy and sell property in Dubai.
Can I buy an apartment in Dubai if I only have a tourism visa?
Yes, you can buy property in Dubai but there are some conditions like what type of property you are looking for. You should contact with developer or property agent!
Can UK residents buy a home in Dubai?
Yes. It is very easy just to bring your passport with proof of identity and a foreign visa card.
Is it a good idea to invest in a property in Dubai?
Yes, because the biggest contribution to Dubai’s GDP comes from the tourism industry. In 2019, 16.73 million people visited Dubai. If you have a good flat then you can earn a lot. I believe that if all goes well then your investment return gives a 15% annual return.
Is it profitable to buy a house in Dubai?
Certainly, buying a house in Dubai is a good idea, you can rent it and earn a decent amount of money. If you have a studio flat in Dubai then you can earn a minimum of AED 1500.
Because you are definitely an investor from another country, before proceeding you have to take many precautions, for which I have provided you with almost all the information about how to buy property in Dubai, but if you have any questions in your mind then you can ask using the comment box