The Dubai market keeps evolving now and then to attract global investors, as well as end users for buying property in Dubai. Whether you’re looking to secure your dream home or seek to buy in Dubai for investment, you need to understand the legal, financial, and practical aspects of buying real estate in Dubai.
This guide will walk you through the essential dos as well as the don'ts of buying for a smooth and secure transaction.
Let us find out the Do’s on how to invest in Dubai real estate
Always start your buying journey in Dubai by working with a licensed dubai real estate broker. All the brokers in Dubai are required to be registered with the Real Estate Regulatory Agency, and you must ask for their IDs without any hesitation. If they are not sharing it, it's a red flag, and you need to find someone reliable.
When you invest in Dubai, especially in areas that are high in demand like Dubai Marina, Downtown, or JVC, do not just take the listed price as its face value. Ensure you do a proper valuation to asses if the property is fairly priced in the market, and meets the market standards as well.
You must always verify legal ownership, no matter whether you are buying an apartment in Dubai Silicon Oasis or a villa at the Palm. This ensures there are no mortgages related to the project or any legal disputes whatsoever. It is best to use the DLD website or the Dubai rest app for this very purpose.
One of the common mistakes that buyer makes is focusing only on the unit price. You may have already figured out the best properties to invest in Dubai, but is that all? Service charges in Dubai largely vary based on the developer and the area.
The affordable apartment that is listed may come with very high annual maintenance fees, and if you don't check it, it will cost you alot later. Always make sure you ask for the latest statement, and then calculate the cost per square foot.
Before you buy an apartment in Dubai Marina, or any areas, best to do a building inspection, condition, plumbing, and maintenance quality. Look at the location, check the schools, hospitals, public transport, and accessibility; this will make or break your experience.
You should never proceed with transferring the funds without receiving a No Objection Certificate from the developer. Also, it is crucial to fill out the official RERA Form, especially in resale transactions.
Make sure your power of attorney is valid, up-to-date, and notarised as well. Using an outdated POA Document will complicate your transfer process.
Let us find out the don’ts for you to keep in mind before you think of buying property in Dubai.
If a property seems to be too good to be true, for example, a great unit in Downtown is valued at a suspiciously low price, there might be an issue. These issues are hidden, you might not be told about them, and later it will become shocking news to you.
This could be related to ownership disputes, poor condition, high service charges, and so many other reasons; therefore, investigate first.
Ensure your off-plan project is registered with the Dubai Land Department, as well as all your payments must go through an official escrow account only. In resale deals, you need to pay the seller directly, and not through any third party.
Now that you know how to buy a house in Dubai, remember to look for some red flags also. Whether you’re new and navigating properties to invest in Dubai or buying your very first home, don't ignore these signs mentioned below.
When you are investing in Dubai real estate, especially to generate rental yields, you need to make your calculations right. Calculate whether the rental yields you will generate every month can compensate for the mortgage value, or cover it. If not, the investment is baseless, and you are not generating any potential capital appreciation; in fact, adding more money monthly to pay for your mortgage.
For investors, the decision should be based solely on how much yield you offer. The golden rule is, if rental return can cover up mortgage, you are solid, based on your investment.
For end users, it all depends on lifestyle, budget, and long-term comfort. Focus on what your money can give you in return, and it should have features that matter to you, not just what the trend says.
The property market of Dubai offers exceptional returns and a lifestyle that you’ve always been longing for.
The risk of buying property in Dubai exists, no matter whether you invest around the world or in this city. hidden charges, legal disputes, unlicensed agents, and more do exist. But when you have proper knowledge, guidance, and certified professionals, you can easily minimize these risks.
The goal is not just buying property in Dubai, but buying smartly and safely. So, if you are wondering how to invest in Dubai the right and smart way, these above Do’s and Don’ts are sure to help you go a long way in your investment and purchasing.
Let our experts assist you with detailed information.