29 August 2013| Last updated on 29 August 2013
Buying in Dubai: What you need to know
Most of us aspire to one day owning our own property or possibly even expanding our property portfolio into more than one country. If you are looking to buy in Dubai the process can be really easy depending on a few factors, of course.
Buying property has quite a few hoops and snares to jump through, therefore due diligence is of utmost importance. You will need to do your homework. Speak to the seller, your agent, the neighbors living on both sides of your property, and read up on all the laws of your home country, and the country in which you are going to buy. Remember, the laws that prevail in your home country aren’t necessarily the same as the laws in the country in which you want to buy.
When you are looking to buy a property from the secondary market it is important to determine the different financial requirements expected of both you and the seller. In Dubai you might need up to a 20% deposit if you are an expat looking to buy a Dubai property with a mortgage. The seller’s financial situation will also come into play. It is important to determine whether the seller has a mortgage on the property and what the seller has done in terms of forward buying. You will need to discharge the seller’s mortgage before going to the Land Department in Deira. More to consider would be if there were a tenant currently living in the property, if the seller lives abroad, and what financing is in place or is needed to complete the transaction.
A little word of advice from JustProperty.com: You should only work with agents who have been registered with RERA. You really want to avoid losing all your savings in a scam. JustProperty.com only accepts listings from agents that are registered with RERA to help you find the property of your dreams with a little bit less risk involved.
You can choose to buy a property off-plan using a 15% deposit and a 2-3 year waiting period to receive your keys; or you can buy your property on the secondary market, which is much quicker but might be a little bit more difficult.
If the transaction is in cash, and the seller has no mortgage on the property, then you can become the proud owner of a Dubai property within 10 to 14 days. Unfortunately the process could take quite a bit longer if you need financing and if the seller has a mortgage too.
If you are going to buy the property using a mortgage the bank will send over an external chartered surveyor that will valuate the property. This is done so that the bank can determine whether the property is surety enough to approve the loan. Once you have your final approval from the bank, the seller will apply for an NOC (No Objection Certificate), which could take up to a week to obtain. Once the buyer and seller have their necessary documents ready, an appointment can be made at the Dubai Land Department to complete the transfer.
On the day of your appointment the seller, buyer, agents, and bank representatives have to be present in Deira. The buyer will need to settle all commissions, and pay 2% as well as AED 315 to the Land Department, as well as all payments to the seller before receiving the title deeds, keys and access cards to their brand new Dubai property.
According to the search results on JustProperty.com, the most popular areas in Dubai for villas are currently: Arabian Ranches; Jumeirah Park; and Dubailand.
The most popular areas on JustProperty.com to search for apartments are: Dubai Marina; Downtown Burj Dubai; and the Palm Jumeirah.