Wealthy people from all over the world have been interested in the housing market in Dubai for some years. There are a great deal of real estate in the emirate for the future investments or residence. Before buying a property in the UAE, the website https://emirates.estate would like to consider some nuances.
Talking about the Arab residential housing, there are basically three property types that a foreign national can buy in Dubai:
- Freehold – those who are planning to invest in the UAE or buy an apartment in Dubai are most often looking for this type of dwelling. Individuals living in the UAE have access to free property, which, if necessary, can be rented, sold and inherited.
- Commonhold – these properties consist mainly of condominiums, apartments and non-residential housing units in Dubai. This type gives an individual the right to buy, sell or rent for the purpose of inheritance.
- Usufruct is a long lease, the term of which can reach 100 years.
Purpose of buying real estate in Dubai
Here are two reasons to buy a residential property in Dubai:
- Purchase for an investment purpose. The housing market in the UAE is very popular due to a large number of advantages: high rental profitability, favorable market capitalization and convenient conditions for doing business. Most foreigners or expatriates buy housing in Dubai, which brings them huge profits in the future.
- Purchase for personal use. People who work or do business in Dubai try to buy real estate. Residential complexes with well-developed local infrastructure are especially in demand among wealthy people: shopping centers, restaurants, schools, kindergartens and much more.
Location of property in Dubai
One of the most important points to consider before investing in real estate in Dubai or in a property for sale in Sharjah is the location. Wealthy people who want to buy an apartment or a luxury villa in Dubai should explore the best communities and places for future investments. Some of the best places in the city, such as Dubai Marina and Downtown Dubai, have a certain set of modern amenities that provide opportunities for a quality lifestyle.
Therefore, investors should strive to buy real estate in Dubai, which can be profitable for them. Finding such a property can be a difficult process, but Emirates.Estate offers a list of the best properties in Dubai in those areas that can provide a long-term ROI to foreign buyers.
Housing in Dubai, which is estimated at AED 1 million and more, allows you to receive a residence visa. In general, two types of resident visas are usually available in the UAE: you can receive a six-month multiple-entry visa and a two-year visa for permanent residence. Moreover, home owners can also sponsor receiving resident visas for their families.
Real estate in Dubai, which is estimated at AED 5 million and more, can help potential expatriates or foreigners to obtain a residence permit for a period of 5 years or more.
Additional expenses for buying residential housing in Dubai
When paying for the house in Dubai, it is necessary to remember about mandatory fees and commissions:
- registration fee is about 4% of the total purchase price;
- NOC fees are usually in the amount of AED 500-5,000 and are paid to the developer;
- the commission of the property agent is almost 2% of the real estate purchase price.
When buying an apartment or a house in Dubai, it is very important to check the developer company and make sure of the reliability of its reputation. This is done before signing a contract or real estate agreement.
To check, you need to make sure that the developer is registered with the relevant regulatory organization, whether he has a special license. In order not to do this personally, you can hire an qualified lawyer. His task will be to monitor all the regulatory documents of the developer, check his work and inform the client about the current situation.
In addition, you can evaluate and analyze the experience of previous clients before making any financial investments.
When buying a property in Dubai from a private seller on the secondary market, it is reasonable to hire a registered professional geodetic company. Specialists will help to evaluate the property by conducting a thorough inspection of the housing units, and will be able to warn potential buyers about the possible risk of high maintenance costs. This is especially true for properties such as villas, which can sometimes remain unoccupied for several months. As soon as the buyer has the property, its maintenance becomes his responsibility. Therefore, it is important to make sure that there are no serious problems.
If the buyer intends to buy the property with a mortgage, it is necessary to make sure that the non-compete clause is included in the contract of sale or Memorandum of Understanding (MoU).
This clause compensates the buyer for the loss of funds deposited as collateral for the property if the bank’s valuation of the property turns out to be lower than expected. Without this, the future owner of the property will lose the money deposited. This is often 10% of the cost of housing in Dubai. The non-compete clause should be specifically formulated with an indication of the expected amount of the contribution, so that there will be no disputes later.
Property liability verification
When buying a property in Dubai, it is important to make sure that the purchased housing is free from any obligations or debts. The seller is responsible for obtaining the N.O.C. certificate (certificate of no objections) at the developer’s office. Developers, as a rule, conduct several inspections of the property to make sure that it is free from any liability. They issue a document confirming the readiness of the specified property for transfer to the Dubai Land Department.
Signing the contract
If you are buying a villa in the UAE, the real estate transaction is accompanied by legal documents – a Memorandum of Understanding (MoU) or a Sale and Purchase Agreement (SPA). These contracts describe all the terms and conditions, as well as contain the responsibility of the buyer and seller when completing the transfer of housing. It is important to make sure that all the points of the document are obvious. If something is unclear, you should consult with a lawyer before signing the contract.
Emirates.Estate is your help in buying a home in Dubai
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