Dubai is well-known for its lavish lifestyle and high skyscrapers. Its residential and commercial real estate market has evoked considerably with constant foreign investment from nationalities, traditional investor and an ever-expanding spectrum of new source markets. However, owning real estate in the sunny Gulf city in the sunny Gulf city may be like an expensive dream for many investors. By contrast, stocks of its most prominent property developers and owners are becoming increasingly within reach.
For those looking to own real estate in Dubai, screening the process from search to title deed transfer before stepping into the realty market as a buyer may seem like a daunting task. It’s, therefore, essential to keep their checklist at each step ready to have a smooth entry into the real estate world in Dubai as a buyer. Following are step-by-step guides to buying property in Dubai.
Off-Plan and Secondary Market
First of all, decide whether you want to go for off-plan or secondary market. Off-plan implies for the under-construction property from real estate developers. Secondary market or resale means owning property from an owner or an agent. So, first make sure which option you want to choose. The purpose behind the purchase of the property – whether you are owning it for end-use or investment – and the availability of capital can impact what type of real estate project should be taken into account.
Calculate the availability of funds and ensure whether it is sufficient to meet the down payment and payment plan for off-plan property or equity requirements of a resale. Keeping checklist ready before plunging into the real estate market is of paramount importance.
No matter the type of property you want to purchase, market research plays a significant role to find a property with the right combination of high rental yield and low vacancy risk. In general, one-bedroom and studios apartments have higher yields when compared with three-bedroom apartments and large villas. If you own a property for self-use, identify key locations, based on important requirements like distance to the workplace, actual unit size, healthcare centers, schools, public transport, and retail stores, etc.
If opting for an off-plan real estate in Dubai, looking at the reputation of the real estate developer, particularly in regards to quality, timely delivery of units and past projects is essential. It is significant for you to visit sites, see homes and get an idea of what you can expect. Finally, you should have zeroed in on the property based on budget, facilities, unit type, and other metrics.
Set a budget
The equity impact of obtaining real estate is not just constraint to the property value, home loan amount, but also loan arrangement fees, the registration charges, and brokerage fee. These are the hidden costs that may account for another 7-7.5 percent of the property purchase price. Therefore, you should establish your budget right from the start to have focused research.
Loan Payment and Property Valuation
For the bank loans, the bank carries out a valuation to determine the asset value independent of the purchase price. The bank will disburse loans as per LTV ratio. The amount depends on the independent bank value or the purchase price – whichever is lower.
Dubai is a popular worldwide destination for its lifestyle and high-rise towers. This U.A.E. city doubles down on efforts in order for making itself a lodestone for investment. If you want to invest in Dubai real estate, search for a reputable developer based on his previous services.