The Arab world, once characterized by unrest and instability, with laws that severely limited foreign ownership, was an unpopular place for foreign investment in the real estate sector prior to 2002. However, in 2002, when the Freehold Decree was introduced as formal legislature permitting foreign nationals to buy, sell, lease or rent property, the Middle East and Dubai in particular, became an immensely popular destination for real estate investments. Today, with the soaring cost of rentals and a healthy luxury property in dubai market that continues to grow, buying property is becoming an increasingly viable and attractive option for expats living in Dubai.
1. Understanding the difference between off-plan or ready properties
A huge section of the real estate market in the United Arab Emirates consists of off-plan properties. Off-plan properties are projects under construction and are sold by developers. The advantage of purchasing an off-plan property is centred around a lower cost, as well as a lower down payment.
2. Be aware of the regulations
The Dubai Land Department’s website offers a regularly updated list of the rules and regulations concerning property transactions in the region. The website offers information surrounding the regulations of a non-resident investing in buy property in Dubai and the rules pertaining to buyers and sellers alike. It is essential to be aware of the regulations set out by the governing body to ensure an easy transaction.
3. Tour the property
Before purchasing a property, it is recommended to tour the residence at different hours of the day to ensure buyers are equipped with all the information about the home. Buyers should also tour the surrounding areas to check the proximity of the buy property in dubai to grocery stores, dining venues and public transportation.
4. Freehold areas
In Dubai, only local Emiratis can purchase benefits of buying property in dubai throughout the country. Expatriates and investors can only purchase property in designated ‘freehold’ areas. Expatriates can also lease properties for up to 99 years, but after the lease expires the property will revert back to the original landlord.
5. Understand the process
It is extremely important to be aware of the purchasing process in a real estate transaction. Even though most individuals make use of a real estate company for advice and expertise, it is still vital, as a client, to be aware of the process to protect oneself and one’s interests. Visit our buyer’s guide to find out more about the process of purchasing a property: https://en.299.com/buyers-process
6. Review a contract carefully
Before completing a purchase, it is greatly essential to carefully review any legal documents that accompany the transaction. In Dubai, a Memorandum of Understanding (MoU) is drawn up to outline the terms relating to the responsibilities and obligations of the buyer and seller of any property. Therefore it is of vital importance to review any legal document before signing it to ensure that you complete your obligations.